Day Traders Diary


U.S. equity futures hover near their pre-market lows amid downbeat overseas trade. The S&P 500 futures trade lower by 0.9% with the overnight weakness coming after the conclusion of the Bank of Japan's most recent policy meeting where the central bank elected to keep its policy stance unchanged. Investors reacted to the somewhat disappointing conclusion of the meeting by selling Japanese bonds and stocks while buying the yen. Currently, dollar/yen trades near 97.00 after notching session lows at 96.48.

Reviewing overseas developments:

Asian markets ended generally lower. Hong Kong's Hang Seng fell 1.2% while Japan's Nikkei dropped 1.5%. Meanwhile, China's Shanghai Composite was closed for Dragon Boat Festival.

In regional economic data:

Japan's BSI Large Manufacturing Conditions rose to 5.0 from -4.6 (-2.1 expected) while machine tool orders fell 7.4% year-over-year (-23.6% prior).

Australia's home loans rose 0.8% month-over-month (2.0% expected, 4.8% prior) while the NAB Business confidence remained at -1.

Looking at news:

Japan's Finance Minister Taro Aso said the tax reform debate should be quickened. Meanwhile, former Finance Minister Eisuke Sakakibara, known as "Mr. Yen", described Prime Minister Shinzo Abe's 'third arrow' speech a disappointment.

Key European indices trade lower across the board. Great Britain's FTSE and Germany's DAX both trade lower by 1.6% while France's CAC registers a loss of 1.8%.

Regional economic data was limited:

British industrial production rose 0.1% month-over-month (0.0% expected, 0.7% prior) while the year-over-year reading declined 0.6% (-0.7% expected, -1.4% prior). In addition, manufacturing production declined 0.2% month-over-month (-0.3% expected, 1.1% previous) while the year-over-year reading fell 0.5% (-0.4% forecast, -1.4% prior).

In news:

The German Constitutional Court in Karlsruhe has begun its two-day deliberations over the legality of the European Central Bank's bond purchases.

Peripheral yields are notably higher this morning. The Greek 10-yr yield is higher by 51 basis points at 9.95% after the country was unable to sell a stake in a natural gas producer. Elsewhere, Italian 10-yr has climbed 11 basis points to 4.36% while Spain's benchmark 10-yr yield is higher by 14 basis points to 4.72%.

In U.S. corporate news:

Sprint Nextel (S 7.48, +0.30) trades higher by 4.3% after Softbank has increased its offer for Sprint to $5.50 per share from $4.02 per share.

Questcor Pharmaceuticals (QCOR 40.00, +3.29) adds 9.0% after acquiring patent rights to a drug previously developed by Novartis.

Today's economic data will be limited to April wholesale inventories with the report set to be released at 10:00 ET.

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