15 February 2012 at 12:55 GMT
China understands that we are all in the same boat
European stocks are rising in today's session following comments from People's Bank of China Governor Zhou Xiaochuan that China would participate in resolving the euro debt crisis. This could really boost confidence in the Eurozone as China's participation in the European Stability Mechanism could result in support from other emerging market countries too. In the end, China knows the figures: Europe is its largest export market, and therefore it is in China's interest to keep the boat afloat as a new deep recession in Europe would really hurt China.
Among the best performing stocks in Europe are BNP Paribas climbing 6.5 percent as the bank reported Q4 net income of EUR 765 mn beating estimates of 587 mn. while saying that its corporate and investment banking division is off to a good start.
Deere and Comcast beat on earnings; US industrial production on tap
S&P 500 Index futures are up 0.6 percent ahead of the open as China's willingness to aid Europe through the European Stability Mechanism is lifting sentiment in stocks.
In pre-market, Comcast reported Q4 EPS of 0.47, beating estimates of 0.42 and its plans to buy back shares worth USD 6.5 bn with an expected USD 3 bn buyback already in 2012. The company also raised its dividend per share to 16.25 cents, up from 11.25 cents and beating The Street's estimates of 15 cents. We expect a lot of volume in Comcast on these figures.
Deere reports Q1 EPS of 1.30 beating estimates of 1.24 as US farmers' profits are soaring on higher agricultural prices. This year US farmers are expected to plant the biggest corn crop since World War II and Deere is truly riding this wave as the company is already raising its full-year forecast.
Later, US industrial production for January is expected (14:15 GMT) to rise 0.7 percent MoM adding to the 0.4 percent growth in December signalling that US manufacturers have escaped large damages from the European debt crisis.
Finally around 19:00 GMT, the minutes of the Federal Open Market Committee meeting will be released and we expect more of the same song as we wrote earlier today in our 3 numbers to watch.