Stock Futures Higher After Italy Sells Debt
NEW YORK ( TheStreet) -- U.S. stock futures were edging higher after an Italian debt auction eased concerns about the deepening eurozone debt crisis.
Futures for the Dow Jones Industrial Average were up 26 points, or 23 points above fair value, at 12,245. Futures for the S&P 500 were up 3.2 points, or 3.3 points above fair value, at 1263, and futures for the Nasdaq were up 6 points, or 0.58 points above fair value, at 2390.
Borrowing costs declined at an Italian bond auction, easing concerns about lack of demand for sovereign debt in the country. Italy sold 9 billion euros of six-month Treasury bills at a rate of 3.251%, down from 6.504% at the last auction. Tomorrow, Italy will sell bonds maturing in 2014 to 2022. The government hopes to sell more than 20 billion euros in total through its auction series this week.
Yields on Italy's 10-year bonds, a gauge of general appetite for Italian issues, were down 3.16%."Today's Italian auction results were clearly a constructive sign for the sovereign's credit and arguably a bigger test of sentiment than tomorrow's longer-dated supply. Nonetheless, Thursday the market is once again tasked with taking down more Italian debt, this larger portion of the week's offerings in maturities ranging from 2014 to 2022," wrote Ian Lyngen, market strategist with CRT Capital Group. "That said, given the relative success of today's shorter-dated paper, expectations are optimistic for the balance." Germany's DAX was climbing 0.04% while London's FTSE was up 0.57%. A decline in Japanese industrial production and a drop in the confidence of South Korean manufacturers pressured Asian stocks overnight. Japan's Nikkei Average settled 0.2% lower, and Hong Kong's Hang Seng was down 0.59%.
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