Day ahead

11.00am – German Industrial Production

 

U.S News

U.S. stocks  fell, sending the Standard & Poor’s 500 Index down for a second straight day, as investors awaited the start of the corporate earnings season.

The S&P 500 fell 0.3 percent to 1,457.15 at 4 p.m. New York time. The Dow Jones Industrial Average lost 55.44 points, or 0.4 percent, to 13,328.85. About 6.2 billion shares changed hands on U.S. exchanges, in line with the three-month average.

The bull market in U.S. equities that began in 2009 may end this year, followed by a drop of as much as 30 percent in the S&P 500 by next year, according to technical analysts at UBS AG.

 

Asian News

Asian stocks climbed, halting a two-day retreat, as Japan’s Nikkei 225 (NKY) Stock Average reversed losses after the yen weakened and Alumina Ltd. (AWC) jumped as partner Alcoa Inc. posted sales that beat estimates.

The MSCI Asia Pacific Index climbed 0.4 percent to 131.28 as of 3:30 p.m. Tokyo time, erasing earlier losses of as much 0.3 percent. The benchmark gauge posted its seventh weekly advance last week, the longest winning streak since March

Chinese automakers advanced after Credit Suisse Group AG forecast demand for cars in the world’s second-largest economy will increase between 8 percent and 10 percent annually in the next three to five years.

 

European News

European (SXXP) stock futures advanced as Alcoa Inc. began the U.S. earnings season by posting sales that beat estimates and investors awaited

Aviva Plc (AV/) may move after selling its stake in Delta Lloyd NV for 433.8 million euros ($568 million). Bayer AG (BAYN) may be active after the chief of its health-care unit said the company won’t sell its diabetes business. Shire Plc (SHP) may move as the company confirmed its guidance for full-year earnings growth.

Futures on the Euro Stoxx 50 Index expiring this month rose 0.3 percent to 2,693 at 7:25 a.m. in London. Contracts on the U.K.’s FTSE 100 Index gained 0.2 percent.

German industrial production rose in November for the first time in four months, a report from the Economy Ministry in Berlin may show. Output increased 1 percent last month from a drop of 2.6 percent a month

 

Currencies

The yen fell versus all of its major counterparts on expectations will accede to government pressure to expand monetary easing that tends to weaken the currency.

Japan’s currency dropped 0.5 percent to 87.49 per dollar as of 6:49 a.m. in London after rising 1.3 percent in the previous two days. It fell 0.5 percent to 114.48 per euro. Europe’s shared currency bought $1.3085 after falling 0.3 percent to $1.3081 yesterday.

 

Bonds

The cost to insure Treasuries climbed to a three-month high before the U.S. sells $21 billion in 10-year notes today as officials debate raising the debt ceiling, spurring concern the nation risks a credit-rating cut.

 

Commodities

Spot gold gained as much as 0.3 percent to $1,664.10 an ounce and was at $1,662.35 at 3:07 p.m. in Singapore. Prices rose 0.8 percent yesterday, the most since Jan. 2, as data showed imports by China from Hong Kong climbed to a seven-month high in November

Oil fluctuated in New York after an industry report showed rising stockpiles in the U.S. Crude for February delivery was at $92.96 a barrel, down 19 cents, in electronic trading on the New York Mercantile Exchange at 4:01 p.m. Singapore time. Brent oil for February settlement on the London-based ICE Futures Europe exchange slid 12 cents to $111.82 a barrel.