Japanese Stock Futures, Australian Shares Rise on U.S. Economic Optimism

Japanese stock futures and Australian equities rose as optimism about the U.S. economy overshadowed Fitch Ratings’ warning it may downgrade Italy’s credit rating.

American depositary receipts of Toyota Motor Corp. (7203), the world’s biggest carmaker by market value, rose 0.5 percent from the closing share price in Tokyo. Those of Mitsubishi Corp. (8058), a Japanese trading company, gained 0.7 percent after oil and commodity prices advanced. BHP Billiton Ltd., the largest global miner, advanced 1.8 percent in Sydney.

Futures on Japan’s Nikkei 225 Stock Average expiring in March closed at 8,440 in Chicago yesterday, up from 8,420 in Osaka, Japan. They were bid in the pre-market at 8,450 in Osaka at 8:05 a.m. local time. Australia’s S&P/ASX 200 Index (CRY) added 0.5 percent today. New Zealand’s NZX 50 Index gained 0.3 percent in Wellington.

“There are more positive signs particularly on employment and consumer” spending in the U.S., saidStephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “The outlook in the U.S. is for modest growth this year, and that’s better than Europe. Expectations are Europe will be in a recession.”

Futures on the Standard & Poor’s 500 Index fell 0.1 percent today. The index rose 0.9 percent in New York yesterday to the highest level since July 29, a week before the U.S. was stripped of its AAA credit rating by S&P.

U.S. Jobs

U.S. employers took on 4.15 million workers in November, 107,000 more than in the prior month, the Labor Department said yesterday. The number of jobs filled in the three months to November was the highest since the period from March to May 2010. Economists expect a report due tomorrow will show retail sales rose 0.3 percent last month, according to the median estimate of economists surveyed by Bloomberg News.

Italy faces a “significant chance” of a credit-rating downgrade by Fitch Ratings, which is reviewing all European sovereign ratings and will make a decision by the end of the month.

“Taking out the crisis premium means a credible firewall,” David Riley, head of the sovereign-debt unit at Fitch, said at a conference yesterday in London. “At the moment, we don’t have that, and that’s a serious concern with respect to Italy,” he said. Speaking on the sidelines of the conference, Riley also said France will probably retain its credit rating unless the European debt crisis worsens.

Chinese Stocks

http://www.bloomberg.com/news/2012-01-10/japanese-stock-futures-australian-shares-rise-on-u-s-economic-optimism.html

From Seeking Alpha

Today In Commodities: Sleeping Giants

It will not likely make headlines because it is not energy or metal but look at the last few days in some of the soft commodities. OJ and cocoahigher by 17%. This is what commodities is all about…timing. The 9 day MA has supported Crude the last three days but unless we make a new high this week I would expect that level to give way. I have advised the sidelines and have told clients to buy the breakout or sell a settlement below $100 in February…trade accordingly. New contract low in natural gas…where is the bottom? I do not see much more downside but I may be talking my clients' position as they are long from 25 cents above current levels. With prices nearing 27 month lows how low do we go to entice buying is the question? Five month highs in securities as we approach the Summer 2011 highs the grind higher should continue. As long as the 9 day MA acts as support expect higher ground.

http://seekingalpha.com/article/318684-today-in-commodities-sleeping-giants