U.S. equity index futures are higher this morning. S&P 500 futures are up 3 points in pre-opening trade. Strength was prompted partially by merger & acquisition news. Prudential has agreed to buy AIG’s Asian unit for $35.6 billion. AIG added 9% on the news. In addition Merck AG has agreed to purchase Millipore for $7.2 billion.
Responses to U.S. economic news released this morning were neutral. Consensus for January Personal Income was an increase of 0.4% versus an increase of 0.4% in December. Actual was an increase of 0.1%. Consensus for January Personal Spending was an increase of 0.4% versus 0.2% in December. Actual was an increase of 0.3%.
Economic news in Canada released this morning was encouraging. Consensus for Canadian annualized real GDP Growth in December was a gain of 0.4%. Actual was a gain of 0.6%. Consensus for fourth quarter GDP was a gain of 4.2%. Actual was a gain of 5.0%.
Currencies fluctuated wildly over the weekend. The Euro gained and the U.S. Dollar fell on rumors that the financial crisis in Greece was about to be resolved. However, gains over the weekend became losses this morning when rumors proved to be untrue.
Copper prices added $0.06 per lb. following the earthquake in Chile. Chile is the largest producer of copper in the world. News reports out of Chile indicate that approximately 20% of Chile’s copper production has been halted. Mining stocks around the world are trading higher.
Investment dealers are taking a more positive stance on the energy sector. This morning Bank of America/Merrill Lynch upgraded selected European based energy companies. BP PLC and Total SA were upgraded from Neutral to Buy.
Research in Motion added 1% after Canaccord Adams raised its target from $95 to $100 U.S.
Don Vialoux, chartered market technician, is the author of a free
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