November 12, 2012-Stocks Poised to Edge Higher on China Data

After seeing considerable weakness last week, stocks may regain some ground in early trading on Monday. The major index futures are currently pointing to a moderately higher open for the markets, with the Dow futures up by 34 points. The markets may benefit from a positive reaction to upbeat Chinese economic data, with a report from China's General Administration of Customs showing that the nation's trade surplus widened to $31.99 billion in October compared to expectations for a surplus of $27.15 billion. Chinese exports surged up by 11.6 percent year-over-year, surpassing expectations for a 10 percent increase. Imports rose by 2.4 percent, below estimates for a 3.4 percent increase. At the same time, traders are also digesting a separate report from Japan's Cabinet Office showing that Japanese GDP shrank by 0.9 percent in the third quarter, marking the first contraction in three quarters. On a year-over-year basis, Japanese GDP fell 3.5 percent in the third quarter compared to expectations for a 3.4 percent drop.