Stocks: Keeping a watch on Europe

Written By limadu on Selasa, 26 Maret 2013 | 05.32

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NEW YORK (CNNMoney)

Cyprus' banks will remain shut until Thursday to give regulators time to guard against a run on deposits. Some form of capital controls will be applied when the banks eventually reopen.

The island nation agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and shrink its banking sector, in return for a €10 billion European Union bailout.

U.S. stocks closed lower Monday as investors fretted over Cyprus. But U.S. stock futures were up slightly ahead of the opening bell Tuesday.

Mediobanca analyst Christopher Wheeler said that Cypriot jitters, which "sent the banks into a tailspin" on Monday, seems to be wearing off. Shares of Citigroup (C, Fortune 500), Bank of America (BAC, Fortune 500) and JPMorgan Chase (JPM, Fortune 500) nudged higher in premarket trading.

"I think today there's a bit more settling down, a feeling that the concerns yesterday were a bit overdone," said Wheeler.

Related: Fear & Greed Index: Getting greedy

Back in the U.S., the Census Bureau will release data on durable goods orders at 8:30 a.m. ET. Orders for durable goods are expected to have increased 3.8% in February, according to the Briefing.com consensus of economists' opinion. But excluding transportation orders are forecast to have slipped 0.2%.

The S&P/Case-Shiller home price index is due at 9 a.m. ET, while reports on consumer confidence and new home sales are up at 10 a.m. The Case-Shiller index is expected to show an increase in the annual pace of home-price increases, according to the Briefing.com consensus, while consumer confidence is expected to have edged up in March and new home sales are expected to have risen to an annual rate of 426,000 in February.

Related: Check out CNNMoney's new portfolio tool!

In company news, Boeing (BA, Fortune 500) completed the first test flight for its troubled 787 Dreamliner since redesigning the aircraft's battery system.

European markets were slightly higher in morning trading, recovering some ground lost Monday when bank stocks were hit by concern that the Cyprus bailout could serve as a model for future eurozone rescues. Shares of Banco Santander (SAN) and Deutsche Bank (DB) continued to trend lower.

Asian markets ended mixed. The Shanghai Composite lost 1.3%, the Nikkei declined 0.6% and the Hang Seng added 0.3%. To top of page

First Published: March 26, 2013: 6:02 AM ET


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