Mixed moves in overseas markets didn’t have much affect on U.S. stocks and exchange traded funds (ETFs) as they opened up the week trading in positive territory.
Asian stocks were lower on as Chinese economic planners urged banks to issue loans to support the government stimulus program which is aimed to boost the nation’s economy by pumping money into spending on building airports and other public works and steer away from spending on speculation in stocks and real estate. The iShares FTSE/Xinhua China 25 Index (FXI) was down 0.1% in early morning trading.
Additionally, Chinese central bank Governor Zhou Xiaochuan stated that his country is sticking with its foreign-currency reserve policy causing Treasuries to rise for a third straight day. The yield on a 10-year note fell to 3.49% in morning trading and the iShares Barclays 7-10 Yr Treasury (IEF) was up 0.07% in morning trading.
In more financial news, the Bank for International Settlements, or the BIS, urged governments to move away from stimulus packages and focus on reforming the international financial system. The bank stated that as the global economy starts to stabilize and recover, a weak financial sector could lead to a temporary improvement and in order for the world to completely heal a strong and healthy banking sector is vital. The news sent the Financial Select SPDR (XLF) up 0.1% in morning trading.
In the crude oil and natural gas world, Enterprise Products (EPD) announced that it will acquire Teppco Partners (TPP) in an all-stock deal worth an estimated $3.3 billion. The deal will form a new energy company that will run nearly 48,000 miles of crude oil and natural gas pipelines and control one of the nation’s largest liquid natural gas terminals. The acquisition will bring an enormous transportation and storage network to Enterprise, leading to nearly $20 million in savings.