Based on premarket futures, US stocks on track to run higher when regular trading gets underway as investors here watch a surging euro and rising European stocks.
Rally in Europe said to be pinned on hopes for the economy as ECB is expected to hike rates tomorrow to corral inflation. Solid German manufacturing data out today, but UK manufacturing wasn’t so hot. Seems basis for rally is a bit flimsy, particularly as a teetering Portugal had to pay an average of more than 5.1% on six-month T-bills in its auction today vs 2.98% a month ago.
Here in the U.S., Chicago Fed’s Midwest manufacturing index hit the tape at 8:30 a.m., and showed some improvement. The bank’s Midwest Manufacturing Index rose 1.3% to a seasonally adjusted 83.3 in February from a revised 82.2 in January, with a 3.5% rise in auto production helping the region outpace broader U.S. indicators. Mind you, that’s for February, before all the problems that erupted in March.
S&P futures up 7.50, DJ futures up 58. Ten-year note flat yield pushing 3.49%. Crude futures higher, Nymex crude at $108.50. Brent crude, meanwhile, is over $122, at $122.40/barrel.