Foreign Markets
Markets rose sharply overnight as foreign investors await a move from the White House to the U.S. auto industry. Japan’s Nikkei Index jumped 428.79 points, or 5.2%, to 8,664.66 points, and Hong Kong’s benchmark Hang Seng index added 288.56, or 2%, to 15,046.95 points.
In Europe, investors were concerned about the exposure of some of Europe’s leading banks to hedge funds managed by arrested Wall Street investment manager Bernard Madoff. The FTSE 100 index of leading British shares was up 11.6 points, or 0.27%, at 4,291.95, while Germany’s DAX was 65.85, or 1.41%, higher at 4,729.22. The CAC-40 in France rose 11.13 points, or 0.35%, to 3,224.73.
U.S. Futures
As the FOMC begins its 2 day meeting Wall Street looks to start the trading week on a down note, with Dow futures down 21 to 8,643. Standard & Poor’s 500 index futures fell 3.50 points to 881.90, while Nasdaq 100 index futures rose 2 to 1,217.
As the economy continues to deteriorate, the FOMC will announce their target rate decisions tomorrow. Currently, the fed funds target rate is at 1%.
Currencies and Commodities
The euro gained 0.76% to $1.3472 while the dollar fell 0.4% to 90.67 yen, still above the 13-year low of 88.16 yen it hit intraday Friday. Crude gained another $2.27 a barrel, or 4.90% to $48.55 as OPEC will announce drastic production cuts to curb the free fall of oil prices. Gold, which had a nice run up last week, gained another $7 per ounce, or 0.85% to $827.50.
Economic News
9:15 AM
Industrial Production: The index of industrial production measures the physical output of the nation’s factories, mines and utilities. The consensus is for a production decline of 0.8% from October to November.
1:00 PM
Housing Market Index: Based on a survey in which respondents from The National Association of Home Builders are asked to rate the general economy and housing market conditions.
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