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US stock market, economy and companies update (September 10, 2012)

Contributed by Trade The News

- Investors are proceeding with caution this morning after last week's run up. With little economic data or equity news on the wires, markets are focused on the FOMC decision and the German Constitutional court rulings due later this week. There are also some concerns about the weak August China import data - the first contraction since January - and the less-than-impressive export data, although the announcement of a moderately-sized Korea stimulus has offset some of these fears. Corporate bond and equity issuance continues to surge, with at least 13 companies offering more than $10B in high-grade debt today alone. Spot gold has flattened out above $1,730, while front-month WTI crude has been pivoting around the $96 handle this morning.

- Shares of Plains Exploration are down around 8% after announcing a deal to acquire BPs stake in various Gulf of Mexico wells for approximately $5.6B. The deal would nearly triple the company's daily production and increase the firm's offshore business greatly, however there are concerns that the company is overpaying. Shares of AIG are in the red this morning on news that the Treasury Department will sell off $18 billion of its common stock holdings, lowering the government's share in AIG to around 20% from 53% currently.

- During the European session, the greenback settled down after Friday's broad losses on the QE fears stoked by the August employment data. EUR/USD remains locked around 1.2780 area, little changed from New York session opening levels. USD/JPY traded at 78.20 while the GBP/USD drifted from its session highs of 1.6019 to test back below the 1.60 handle.

***Looking Ahead***
- 11:00 (US) Fed to buy $1.00-1.50B in bonds
- 11:30 (US) Treasury to sell $32B in 3-Month and sell $28B in 6-Month Bills
- 15:00 (US) July Consumer Credit: $9.6Be v $6.5B prior

***Economic Data***
- (MX) Mexico Jun Gross Fixed Investment: 2.7% v 3.7%e
- (MX) Mexico July Final Trade Balance: -$426.9M v -$426.9M prelim
- (RU) Russia Aug Light Vehicle & Car Sales Y/Y: 15% v 14% prior