European Index Futures Retreat; Barclays, Wirecard May Be Active

European stock-index futures retreated, indicating equities will decline, after Monday’s rally.

Contracts on the Euro Stoxx 50 Index expiring in December slipped 0.5 percent to 3,430 at 7:13 a.m. in London. FTSE 100 Index futures dropped 0.2 percent.

Oil-and-gas producers led European stocks to their biggest gain in six weeks yesterday, helped by the falling euro and oil prices that have held above $ 40 a barrel. Europe’s benchmark gauge was resuming a rally that had stalled earlier this month, after rebounding as much as 12 percent from a September low.

Investors are also awaiting minutes from the Federal Reserve due after the close of European trading to gauge the likelihood of an increase in borrowing costs next month. U.S. inflation data yesterday bolstered the case for higher interest rates.

Among stocks that may move today on corporate news, Barclays Plc may be active. The lender is expected to pay at least $ 100 million to settle an investigation by New York’s banking regulator into whether it abused certain currency-trading program practices, according to a person briefed on the matter.

Source: Bloomberg


China Stock-Index Futures Rise; Country Garden May Be Active

PT BEST PROFIT FUTURESChinese stock-index futures rose after the benchmark Shanghai gauge climbed to the highest level since March 2008.

Futures on the CSI 300 Index expiring in April, the most active contract, advanced 0.8 percent to 4,164.20 as of 9:18 a.m. Environmental shares may be active after China National Radio said the government will announce a plan to limit water pollution. Country Garden Holdings Co. may move after saying it will sell a 9.9 percent stake to Ping An Insurance Group Co.  to raise capital.

The Shanghai Composite Index rose 1.7 percent to 3,810.29 on Wednesday after the government’s manufacturing gauge signaled an improvement in the world’s second-largest economy. The stock index has jumped 86 percent since the end of June amid speculation of further monetary easing spurred by borrowed funds. The balance of margin trading in Shanghai topped the 1 trillion yuan ($ 161 billion) level for the first time on Wednesday.

The CSI 300 Index advanced 1.8 percent. Hong Kong’s Hang Seng China Enterprises Index added 1.6 percent, while the Hang Seng Index added 0.7 percent. The Bloomberg China-US Equity Index rose 0.4 percent on Wednesday.

The outstanding balance of margin debt on the Shanghai Stock Exchange climbed to 1.01 trillion yuan on Wednesday after surging to 992.1 billion yuan the previous day. The Shanghai gauge’s relative strength index has drifted above 70 for a 12th straight day, signaling that shares are poised for a reversal.


Source : Bloomberg