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Current Futures: Dow -24.00, S&P -2.70, NASDAQ -4.75
European markets opened above the break-even line, but similar to how the market behaved over the last few days, the major indexes were not able to gain and easily hold.
S&P futures had a 5-point range overnight, something that was reflected both in currency and in the equity market moves, since neither the major indexes from the Asian nor the European regions were able to trend decisively. Moreover, the European markets are heading towards one of the few weekly declines since early March, when the current uptrend started.
During the European session, the biggest gains were seen in the raw material sector and in the companies that specialize in making car parts. Over the last few weeks of trading, the heavily weighted commodity stocks have become the stars of the equity markets, as oil and other commodities posted double-digit gains.
Raw material producers where pushed higher as oil managed to break above the $70 benchmark, TheLFB-Forex.com Trade Team notes. Car-parts maker rose after Bridgestone, the largest tire-maker in the world announced that it managed to reduce its losses over the previous quarter. VW was today’s top performer in the German Dax as the company is planning to form an alliance with Suzuki. Interestingly enough, the same sectors were Friday’s top performers in Asian trade as well, TheLFB-Forex.com Trade Team notes.
Also in Europe, financials traded mostly mixed, after UBS – one of the largest European banks and at the same time the European bank hardest hit by the credit crisis – said that it will probably post second quarter losses on reorganization costs. In addition, the bank announced, without any prior signals, that it raised $3.5 billion in share sales, to a small group of institutional investors. TheLFB-Forex.com Trade Team considers that this happened as the SNB is planning to obtain administrative powers to split banks that post systematic risk for the economy (read Credit Suisse and UBS).
Overnight, the U.K. Ftse rose 26.43 points (0.62%) to 4,279.00, while the German Dax added 35.62 points (0.74%) to 4,836.18
Crude oil for July delivery was recently trading at $70.80 per barrel, higher by $0.60.
Gold for July delivery was recently trading up by $6.00 to $945.50.
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