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25Sep2015 Pre-Market Commentary: U.S. Futures Up One Percent. Markets Expected To Open Higher

Written by Gary

U.S. stock futures indexes are up over one percentage point and markets across the globe are on the rise after Federal Reserve Chair Janet Yellen reassured investors that the U.S. economy is strong enough to support an interest-rate increase and laid out a case for raising rates later this year.

Markets are expected to open higher.

Here is the current market situation from CNN Money

European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 3.59% while Germany's DAX is up 3.20% and London's FTSE 100 is up 2.57%.

What Is Moving the Markets

Here are the headlines moving the markets.

European shares rally at end of rocky week

LONDON (Reuters) - European equities ended a rocky week with a 3 percent surge as investors bet that a Volkswagen-led sell-off had gone too far and bond yields jumped on renewed talk of an interest rate hike in the United States.

Volkswagen to pick new boss to tackle emissions scandal

WOLFSBURG, Germany (Reuters) - Volkswagen is expected to name Matthias Mueller, the head of its Porsche division, as chief executive on Friday and purge other managers to show it is acting decisively to end a crisis over its rigging of U.S. diesel emission tests.

Oil prices steady, pressured by Japan data, dollar gain

LONDON (Reuters) - Oil prices were steady at about $48 per barrel on Friday, pressured by a rise in the dollar, weak consumer data from Japan and after analysts from Standard & Poor's ratings cut their oil price assumptions.

Goldman Warns On Limits Of Central Bank Policy: "The Road To Hell Is Paved With Good Intentions"

Back in May, we noted that minutes from the ECB's April 14-15 policy meeting seem to reveal that the central bank is either obtuse or else suffering from a frightening bout of willful ignorance. Here's are the excerpts which led us to that assessment:

Since the Governing Council's previous monetary policy meeting on 4-5 March 2015, the implementation of the ECB's expanded asset purchase programme (APP) had had a significant impact on euro area financial markets, contributing to further declines in government bond yields.

A strong signal needed to be sent to euro area governments urging them to press ahead with structural reforms and to take measures to improve the business environment. Only with such complementary action could the full benefits of the monetary policy measures be reaped.

Now obviously, implementing a 1.1 trillion program designed specifically to lower government borrowing costs is the exact opposite of sending a "strong signal" to policymakers regarding the absolute necessity of getting serious about fiscal rectitude. That is, if it does anything, PSPP discourages governments from reining in spending by artificially suppressing borrowing costs, which effectively robs the market of the ability to price government risk.

Well, as it turns out, even if the ECB doesn't understand this, Mario Draghi's former employer certainly does, because a new paper co-authored by Goldman's Huw Pill and Alain Durre acknowledges the role central banks play in discouraging fiscal discipline. Here's more

U.S. companies quicker to give board seats to activists

NEW YORK (Reuters) - Early in August, a call came into Sysco Corp from Trian Fund Management LP, warning the food distributor that the activist hedge fund was about to disclose a large stake in the company.

Futures jump as Yellen eases fears of slowing growth

(Reuters) - U.S. stock index futures rose 1.5 percent on Friday, a day after Federal Reserve Chair Janet Yellen said she expects the central bank to raise interest rates later this year.

Frontrunning: September 25

Global Markets Rebound on Yellen Speech (WSJ)

Obama and Putin to meet; Syria and Ukraine vie for attention (Reuters)

Obama to host China's President Xi amid simmering tensions (Reuters)

Don't Fall for It, Xi! Chinese Take to Web to Scorn U.S.â€"and China, Too (BBG)

Yellen Confirms Fed Still on Track to Raise Rates This Year (BBG)... but is still China dependent?

Abe's New Economic Plan Confounds Analysts (BBG)

It's All `Perverted' Now as U.S. Swap Spreads Tumble Below Zero (BBG)

China Capital Outflows Hit Record in August on Yuan Weakness (BBG)

Brazil Braces for More Pain (WSJ)

Saudi suggests pilgrims at fault ...

Volkswagen turns to Porsche boss to steer it out of crisis: source

BERLIN (Reuters) - Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal broadened.

BlackBerry posts quarterly loss as turnaround continues

TORONTO (Reuters) - BlackBerry Ltd reported a second-quarter adjusted loss on Friday as the company's turnaround continued and it attempted to boost revenue from its software division.

Fed's Yellen gets medical attention after struggling with speech

AMHERST, Mass. (Reuters) - Federal Reserve Chair Janet Yellen received medical attention on Thursday after coughing, pausing and struggling to finish a speech in which she said the U.S. central bank was on track to raise interest rates this year for the first time in nearly a decade.

New iPhones hit stores, record sales expected in first weekend

SYDNEY/SAN FRANCISCO (Reuters) - The new iPhone 6s and 6s Plus hit stores on Friday, with dozens of people - and a robot - queueing in Sydney to kick off a global sales cycle that will be scrutinized for signs of how much juice Apple Inc's marquee product has left.

Futures Surge On Renewed "Hopes" Of Fed Rate Hike, Sliding Yen

Just one week after the Fed overwhelmingly voted to keep rates unchanged, in a move that was seen as a painfully dovish admission that neither the global nor the US economy are growing at anything close to a satisfactory pace, last night, in a very macabre speech which ended prematurely when a clearly unwell Yellen called it a day, the Fed Chair tried to once again lay out the case for a rate hike before year end.

The market, which clearly ignored the glaring contradictions in Yellen's speech which said that overseas events should not affect the Fed's policy path just a week after the Fed statement admitted it is "monitoring developments abroad", and also ignored Yellen explicit hint that NIRP is coming (only the size is unclear), and focused on the one thing it wanted to hear: a call to buy the all-critical USDJPY carry pair - because more dollar strength apparently is what the revenue and earnings recessioning S&P500 needs - which after trading around 120 in the past few days, had a 100 pip breakout overnight, hitting 121 just around 5am, in the process pushing US equity futures some 25 points higher at last check.

So is that it? Has the confused market, after a 7-year liquidity addiction driven by an overly generous liquidity dealing Fed, decided to go cold turkey and accept that rate hikes are positive for risk? Hardly. But it will take the confused market the usual period of time before it realizes that Yellen's deathwish on Emerging Mar ...

Rail Week Ending 19 September 2015: Year-over-Year Trends Continue to Degrade

Week 37 of 2015 shows same week total rail traffic (from same week one year ago) declined according to the Association of American Railroads (AAR) traffic data. Intermodal traffic insignificantly expanded year-over-year, which accounts for approximately half of movements. but weekly railcar counts continued in contraction. This cannot be a positive data point for the USA economically.

Fed's Balance Sheet 23 September 2015 Again Marginally Grows

Total Fed Balance Sheet:

Fed's Balance Sheet week ending balance sheet was $4,459 trillion..

Janet Yellen Says Fed Is Likely to Raise Interest Rates This Year

A week after the Fed declined to raise interest rates, the chairwoman reiterated that the central bank was not planning to wait much longer.

Did Janet Yellen Give The Green Light To Buy Apple, Netflix & Company?

Janet Yellen says there is no boogeyman

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