U.S. futures higher ahead of data; Dow Jones up 0.47% ..

U.S. stock futures were higher on Tuesday, as data showed that the euro zone avoided a recession but concerns over political deadlock in Greece and the country’s potential exit from the euro zone continued to weigh on sentiment.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise 0.47%, S&P 500 futures signaled a 0.57% increase, while the Nasdaq 100 futures indicated 0.69% gain.

Official data showed that the euro zone avoided a recession in the first quarter, as gross domestic product growth remained flat, defying expectations for a contraction of 0.2%. The euro zone economy contracted by 0.3% in the fourth quarter of 2011.

Sentiment also found support after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.

But investors remained cautious amid fears that last ditch talks aimed at forming a government in Greece would fail after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.

Financial stocks were expected to be active as JPMorgan chief Jamie Dimon faces shareholders after the bank lost billions of dollars on trading and hedging strategies gone wrong. The bank announced a USD2 billion trading loss on Friday, prompting regulators to demand stiffer oversight for the banking industry.

The auto sector was also likely to be in focus following reports that General Motors, the largest U.S. automaker, is interested in buying Ally Financial Inc's international operations, sending GM shares up 0.22% in after hour trade.

Groupon shares surged 17.94% in late trading, after the company reported first quarter profit of two cents per share, higher than analysts’ estimates. Its revenue of USD559 million was also above expectations of USD531 million.

Elsewhere in earnings, Home Depot's first-quarter results came in line with expectations, at 65 cents a share, higher than 50 cents a share in the year-ago quarter. Shares tumbled 2.97% in pre-market trade.

In corporate news, Coty Inc., the maker of perfumes by Beyonce Knowles, withdrew its sweetened USD10.7 billion offer for Avon Products Inc., saying the world’s largest door-to-door cosmetics seller refused to negotiate.

Meanwhile, investors were eyeing Facebook, as it increased the price range in Silicon Valley's biggest-ever initial public offering to raise more than USD12 billion, giving the No.1 social network a valuation potentially exceeding USD100 billion.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 advanced 0.43%, France’s CAC 40 climbed 0.70%, Germany's DAX rose 0.28%, while Britain's FTSE 100 added 0.13%.

During the Asian trading session, Hong Kong's Hang Seng Index rose 0.5%, while markets in Japan’s Nikkei 225 Index slumped 0.8%.

Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.

 

Euro firms up but remains vulnerable on Greece ..

The euro pushed higher against its major counterparts on Tuesday, after better-than-expected German economic growth numbers helped support market sentiment but the single currency remained vulnerable amid ongoing concerns over a possible Greek exit from the euro zone.

During European late morning trade, the euro was up against the U.S. dollar, with EUR/USD gaining 0.26% to hit 1.2853.

The euro found support after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.

Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.

A separate report showed that the ZEW index of German economic sentiment deteriorated significantly more-than-expected this month, declining for the first time in six months.

The ZEW Centre for Economic Research said that its index of German economic sentiment declined to 10.8, from April’s reading of 23.4. Analysts had expected the index to decline to 19.0 in May.

Meanwhile, official data showed that the euro zone avoided a recession in the first quarter, as GDP growth remained flat, defying expectations for a contraction of 0.2%. The euro zone economy contracted by 0.3% in the fourth quarter of 2011.

Sentiment on the single currency remained fragile amid fears that last ditch talks aimed at forming a government in Greece would fail after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.

Greece’s GDP contracted at an annualized rate of 6.2% in the first three months of 2012, official data showed.

The single currency eased against the pound but remained within striking distance of a three-and-a-half year low, with EUR/GBP climbing 0.36% to hit 0.7996.

The pound was largely unchanged after official data showed that the U.K.’s trade deficit remained unchanged at GBP8.6 billion in March.

The euro higher against the yen, with EUR/JPY climbing 0.36% to hit 102.75 and remained little changed against the Swiss franc EUR/CHF dipping 0.01% to hit 1.2010.

Elsewhere, the shared currency was mixed against the Canadian, Australian and New Zealand dollars, with EUR/CAD dipping 0.04% to hit 1.2866, EUR/AUD slipping 0.22% to hit 1.2848 and EUR/NZD rising 0.27% to hit 1.6554.

Earlier Tuesday, the minutes of the Reserve Bank of Australia’s last meeting said that “the risks emanating from Europe continue to cloud the global outlook;” and added that “inflation is likely to remain in the lower half of the target range over the foreseeable future.”

On May 1, the RBA cut its benchmark interest rate to a two-year low of 3.75% to help boost growth.

Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.

Forex - GBP/USD down on economic data ..

- The British Pound was lower against the U.S. Dollar on Friday after the release of U.K. data on PPI Input. GBP/USD was trading at 1.6119, down 0.16% at time of writing. The pair was likely to find support at 1.6068, Wednesday’s low, and resistance at 1.6199, Monday’s high. Earlier in the day, official data showed that Producer price inflation input in the U.K. fell more-than-expected to a seasonally adjusted -1.5% last month from 1.7% in the preceding month whose figure was revised down from 1.9%.

 

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Gold futures bounce off 8-week low on bargain buying..

Forexpros - Gold futures rose for the first time in four sessions on Thursday, as the previous day’s steep drop to an eight-week low created bargain buying opportunities for investors reluctant to bet that prices would fall further.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,647.55 a troy ounce during early European morning trade, gaining 0.26%.      It earlier rose by as much as 0.4% to trade at a session high of USD1,649.25 a troy ounce. Prices plunged nearly 2% to hit USD1634.75 on Wednesday, the lowest since January 16.Gold futures were likely to find support at USD1,625.85 a troy ounce, the low from January 13 and resistance at USD1,682.75, the previous day’s high.Gold futures plunged nearly 5% in the three sessions leading up to Thursday, as gold traders continued to unwind long positions after the Fed gave an upbeat assessment of the U.S. economy on Wednesday, which reduced expectations for a third round of U.S. monetary easing by the central bank.A reduced likelihood of additional monetary stimulus can be viewed as a negative for gold, as the metal is seen as a safe store of value and benefits when inflationary fears rise.Gold prices lost nearly 5% on February 29, when Fed Chairman Ben Bernanke failed to mention another round of easing in a statement in his testimony to the U.S. Congress.The upbeat Fed assessment boosted the dollar, which tends to weigh on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.However, Fed officials reiterated their intention to keep the benchmark interest rate unchanged at a record low through late 2014 and made no changes to its Operation Twist program to replace shorter-term Treasurys in its balance sheet with longer-term debt. Global financial service provider Barclays said in a report that it expected prices to find support at these levels as investor appetite for gold remains healthy due to decent physical demand, negative real interest rates and longer-term inflationary concerns.Elsewhere on the Comex, silver for May delivery eased up 0.15% to trade at USD32.23 a troy ounce, while copper for May delivery added 0.1% to trade at USD3.852 a pound.

U.S. stocks dip amid profit taking; Dow down 0.02%

Forexpros - U.S. stocks finished Friday lower as investors sold for profits on sentiment that global economic activity doesn't support rising share prices.The Dow Jones Industrial Average closed down 0.02%, the S&P 500 index was down 0.32% while the Nasdaq Composite index finished down 0.43% amid lackluster trading.Stocks still managed to finish the week in positive territory.Stocks prices have performed well in 2012, and U.S. Federal Reserve Chairman Ben Bernanke has said the U.S. Central Bank has no set plans to intervene with measures such as quantitative easing to prop up the economy.Under quantitative easing, the Fed buys assets like mortgage-backed securities and Treasury bonds from banks with the aim of boosting liquidity, keeping borrowing costs low and sending stock prices rising in hopes investment and more organic growth will follow.Bernanke told the U.S. Congress that the economy, while far from recovered, is showing signs of improvement, which markets interpreted as a signal that easing remains on hold for now, which was bearish for stocks and bullish for the dollar.Leading Dow Jones Industrial Average performers included AT&T, up 0.82%, JPMorgan Chase, up 0.67%, and IMB, up 0.64%.Leading index losers included American Express, down 1.14%, Caterpillar, down 0.84%, and General Electric, down 0.73%.European indices were mixed to higher.After the close of European trade, the EURO STOXX 50 fell 0.10%, France's CAC 40 rose 0.04%, while Germany's DAX 30 finished down 0.29%. Meanwhile, in the U.K. the FTSE 100 closed down 0.34%.  On Monday, the U.S. Institute of Supply Management will release its Non-Manufacturing Purchasing Managers' Index.

U.S. stocks higher despite surging oil, conflicting data ..

Forexpros - U.S. stocks closed higher Thursday, despite conflicting U.S. economic data and surging oil prices. Near the close of U.S. trade, the Dow climbed 0.22%, the S&P 500 advanced 0.62% and the Nasdaq added 0.74%. Dampening the rally, the Institute for Supply Management reported manufacturing activity expanded at a slower rate than expected in February. The ISM index of purchasing managers’ fell to 52.4 last month, from a reading of 54.1 in January, disappointing expectations for an increase to 54.6. However, in bullish news, government data showed that U.S. initial jobless claims declined modestly last week, holding steady near the lowest level since March 2008.Labor

Forex - EUR/JPY steady after U.S. employment data ..

Forexpros - The euro was steady against the yen on Thursday, trading close to a three-month high after U.S. jobless claims remained broadly unchanged while concerns over the economic outlook in the euro zone continued to weigh. EUR/JPY hit 106.87 during European afternoon trade, the pair’s highest since November 9; the pair subsequently consolidated at 106.72, adding 0.32%.The pair was likely to find support at 105.42, Wednesday’s low and resistance at 107.58, the high of November 9.Official data showed earlier that the number of people who filed for unemployment assistance in the U.S. last week remained at 351,000, holding steady near the lowest level since March 2008, confounding expectations for an increase to 354,000.Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 15 of the past 17 weeks.Meanwhile, the euro’s gains were limited after the European Commission’s forecast for economic growth showed that the euro zone’s economy would contract by 0.3% in the first quarter after dropping by the same amount in the last quarter of 2011. Two consecutive quarters of contraction signal a recession.Sentiment strengthened earlier after German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 109.6 in February from a reading of 108.3 the previous month, surpassing expectations for an increase to 108.8.