13Jan2016 Pre-Market Commentary: US Futures Higher This Morning, China's Renminbi Plunged Overnight, WTI Oil Rising, US Dollar Steady

Written by Gary

US stock future indexes are up fractionally as are crude futures, the first time in eight days. Oil inventories are being reported at 10:30 and that will bring about volatility. Risk appetite is the name of the game for now, but this could be very temporary. 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 1.36% while Germany’s DAX is up 1.17% and London’s FTSE 100 is up 1.17%.

What Is Moving the Markets

Here are the headlines moving the markets.
	Fed’s Rosengren says slowing growth could pull down Fed rate path BOSTON (Reuters) – Global and U.S. economic growth may be slipping and force the Federal Reserve into a more gradual course of rate hikes than officials currently expect, Boston Fed president Eric Rosengren said on Wednesday.
	GM raises 2016 profit outlook, boosting share buybacks, dividend DETROIT (Reuters) – General Motors Co said on Wednesday it will return cash to shareholders by raising its stock buyback program by 80 percent to $9 billion and increasing its dividend by 6 percent, sending shares up 4.3 percent in premarket trading.
	Icahn says he does not have any position in Time Warner (Reuters) – Billionaire activist investor Carl Icahn said on Tuesday he did not own any stake in media company Time Warner Inc.
	Hopes rise for Volkswagen diesel deal despite CEO faux pas FRANKFURT (Reuters) – Volkswagen shares rose ahead of a crucial meeting on Wednesday at which its chief executive will try to persuade U.S. authorities to accept a fix for hundreds of thousands of cars rigged to cheat diesel emissions tests.
	Stock futures rise on China trade data surprise (Reuters) – U.S. stock index futures were higher on Wednesday after positive trade data out of China boost investor sentiment and helped crude oil stage a modest recovery.
	Oil rises for first time in eight sessions on China, U.S. stocks draw LONDON (Reuters) – Oil prices rose for the first time in eight days on Wednesday as positive Chinese trade data and an unexpected draw in weekly U.S. crude oil inventories gave investors reasons to buy crude futures.
	GE says plans to cut 6,500 jobs in Europe in next two years PARIS (Reuters) – General Electric plans to cut 6,500 jobs in Europe over the next two years, including 765 in France and 1,300 in Switzerland, the company said on Wednesday.
	China trade surprise brings relief LONDON (Reuters) – Stock markets in Europe and Asia rose and oil prices jumped on Wednesday after Chinese trade data cooled concerns over the world’s second biggest economy, steadying money and currency markets in Shanghai and Hong Kong.
	From chaos to calm: one year on from Swiss ‘Frankenschock’ ZURICH/LONDON (Reuters) – A year on from “Frankenschock”, when Switzerland’s central bank sent global foreign exchange markets into a frenzy by abruptly ending its cap on the Swiss franc, the currency is one of the most stable in the world.
	Frontrunning: January 13 China trade surprise brings relief (Reuters) Obama knocks Trump, voices optimism (Reuters) Republican Candidates Criticize Obama’s State of the Union Address (WSJ) Republicans and Democrats Agree: We Hate Wall Street (WSJ) Oil rises for first time in eight sessions on China, U.S. stocks draw (Reuters) U.S. Exports First Freely Traded Oil in 40 Years (WSJ) China Imports Record Crude as Price Crash Accelerates Buying (BBG) Can We Fix American Cities by Tearing Them Down? (BBG) Powerball hits $1.5 billion, largest-ever lottery jackpot for one winner (Reuters) Global PC Shipments Fall to Lowest Since 2008, Gartner Says (BBG) ECB’s Villeroy Says 2008 Financial Crisis Won’t Be Repeated Now (BBG) Portugal Said to Have Opposed Central …
	GE To Cut 6,500 European Jobs Last April, the financial markets cheered the biggest restructuring in GE’s history when the oligopoly announced the dramatic shrinkage of GE Capital but more importantly, GE announced the largest, at the time, stock buyback in history, repurchasing some $50B in shares. As we said at the time, “the main reason for this near record buyback announcement is two-fold: GE’s belief that there is no incremental value left in GE Capital, the bulk of whose assets it is selling, a division which nearly bankrupted the conglomerate back in 2008 when as a result of its massive leverage, anywhere between 9x and 10x” and added that the other, less pleasant consequence for GE employees would be the massive layoffs to be announced in due course. A few hours ago, “due course” arrived when the company announced plans to cut 6,500 jobs in Europe over the next two years, including 765 in France, a spokesman for the company in France said on Wednesday. The spokesman added that GE was sticking to its pledge to create 1,000 net jobs in France in the next three years as part of its recent acquisition of Alstom’s energy business. So definitely firing 6,500, but tentatively promising to add 1,000. He spokesman added that unions had been informed on Tuesday and that talks would start on Wednesday. “This is a plan, which could change following discussion with employee representatives,” he said. We doubt the local unions will be delighted by the news, although we are confident they will not be surprised. Furthermore, this is only the beginning, because as
	Global Stocks Rebound As Fears Of Chinese Hard-Landing Pushed Back On Strong Trade Data After two months of sharp currency devaluation, the market was carefully watching last night’s China trade data to see if the Yuan debasement had led to a positive trade outcome to the world’s second largest economy, and as reported last night, it was not disappointed when China reported a December trade surplus of $60.09 billion from $54.1 billion in November, as a result of exports beating expectations and rising 2.3%, the first increase since June, while imports declined by just 4%, the smallest drop since 2014 despite China importing a record amount of oil, or 33.2 million tons, ostensibly to take advantage of low oil prices and fill up its strategic petroleum reserves. œThe market was pricing a hard-landing in China and with the latest trade data and the central bank’s effort to prop up the currency, those fears seem to have been overblown, Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen, told Bloomberg. œNow we’re probably going to see the market go the other way. Stocks that have taken the biggest hit are those related to energy. It makes sense that they rebound the most. Naturally, this being China, one can be confident that the true data has been dramatically “massaged”, something promptly suggested by Guosen Securities which said the December trade balance improvement cam …
	Stocks Rise on China Trade Data Global stocks gained Wednesday as fears about the Chinese economy appeared to retreat and oil prices moved off recent lows.
	Oil Up From 12-Year Low Oil rebounded on Wednesday with investors hunting for bargains after oil fell to a new 12-year low below the $30 mark in the previous session.
	U.S. Exports First Freely Traded Oil in 40 Years Two tankers filled with freely traded U.S. oil have pulled out of Texas ports in the past two weeks, with more shipments expected.
	Fundamental Disagreement: How Much And Why? from Liberty Street Economics — this post authored by Richard Crump and Stefano Eusepi Everyone disagrees, even professional forecasters, especially about big economic questions. Has potential output growth changed since the financial crisis? Are we bound for a period of “secular stagnation”? Will the European economy rebound? When is inflation getting back to mandate-consistent level? In this post, we document to what degree professional forecasters disagree and discuss potential reasons why.
	The Tell: Saudis making a ˜trillion-dollar mistake,’ says U.S. oil billionaire Saudi Arabia’s attempt to flood the world is a œtrillion-dollar mistake that is bound to backfire, says U.S. oil billionaire and shale pioneer Harold Hamm
	Deep Dive: 10 oil companies that will thrive as crude prices rebound Companies with low debt, such as National Oilwell Varco, will be able to scoop up rivals and grab market share.
	The New York Post: Apple could make play for Time Warner to boost TV offering Apple is among a handful of companies, all possible suitors of the entertainment company, which has recently come under pressure from activists to sell itself or spin off assets.