Current Futures: Dow -4.00, S&P +0.20, NASDAQ -1.50
Asian markets and the U.S. futures are currently trading mixed, following poor data from China and Japan. Additionally, earlier in the day, the major U.S. indexes closed the spot session mixed, helped by a rally just before the closing bell.
A report showed tonight that industrial production grew in China less than estimated in April. At the same time, a different release showed on Tuesday that exports, one of China’s most important economic activities, contracted 22.6% in April from one year earlier. To some extent, the two releases contradict the recent green shot theory, which suggests that demand is picking up TheLFB-Forex.com Trade Team notes.
Additional confirmation came tonight from Japan, where a report showed that demand for exports continued to stay at record low levels. This has the potential to affect the Japanese economy to a very high degree, since it is built around the export market. For now, the Japanese economy is expected to contract around 4% in 2009, much more than the U.S. or the European economies.
Despite this, the sentiment turned bullish in the Asian session after Olympus said that the company would be profitable this year. The announcement came as a surprise, and helped the company gain more than 12% TheLFB-Forex.com Trade Team said. Nissan also improved its projections for the current year, helping the company reach the highest value since November.
Overnight, the Japanese Nikkei added 9.55 points (0.10%) to 9,308.16. The Australian S&P/Asx slipped 31.30 points (0.81%) to 3,845.90.
Crude oil for May delivery was recently trading at $59.60 per barrel, higher by $0.70.
Gold for May delivery was recently trading higher by $2.30 to $926.20.