Monday 8 October 2012

October 8, 2012 Financial Market Summary


At 0500 BST today, FTSE 100 futures are trading marginally lower.
At 0500 BST today, German DAX Xetra 30 futures are trading 6.6 points down, while French CAC-40 futures are trading marginally lower.
At 0500 BST today, DJIA futures are trading 24.0 points down.
Markets in Japan were closed on account of public holiday.
In Asia, crude oil for November delivery is trading 0.5% or $0.42 lower at $89.45 per barrel.
At 0400 BST today, the GBP is trading 0.2% lower against the USD at $1.6113, 0.1% higher against the EUR at €1.2396, and 0.2% lower against the JPY at ¥126.69.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 24.0 points down.
On Friday, DJIA edged up 0.3%, to end at 13,610.2. NASDAQ slid 0.4%, to close at 3,136.2. S&P 500 eased marginally to settle at 1,460.9.
US markets closed mixed on Friday, as early euphoria over a better-than-expected September jobs report faded amid renewed concern about the eurozone debt crisis.
First Solar slumped 11.0%, after a broker downgraded the stock to “Negative” from “Positive”, citing reliability related issues of module-junction box. Zynga lost 11.9%, as it cut its full-year earnings and revenue outlook late Thursday.
Apple lost 2.1%, apparently weighed down by an encouraging quarterly profit posted by its rival, Samsung.  Hewlett-Packard continued its slide, dropping 1.4%, after a broker downgraded its rating on the stock to “Neutral” from “Buy”.
However, Home Depot rose 2.4%, hitting a new 52-week high, as Minyanville named it as one of the top buys in the services sector. Boeing added 1.4%, after it delivered 149 commercial air-planes in the third quarter, a sharp rise from a year ago.
After the closing bell, Celadon Group rose 1.7%, as its projected first-quarter earnings that surpassed market expectations.
Asian Market Snapshot
Asian markets are trading lower this morning, as investors exercised caution before a meeting of the European finance ministers at Luxembourg, aimed to ease the European debt crisis.
In Hong Kong, Prada SpA lost values, as China's retail sales growth slowed during the Golden Week holiday. SIM Technology Group tumbled as it mulled to raise $22.7 million. ZTE Corp paced losses, as a US congressional investigation concluded that the company posed a security threat to the US and should be barred from US contracts and acquisitions.
In South Korea, Samsung Electronics paced losses, as a survey of US consumers revealed that the patent ruling in a legal-row with Apple had a mostly-negative impact on Samsung’s long-term competitive position in smart-phones and tablets.
Japanese markets were closed on account of public holiday. Hang Seng is trading 0.7% down, at 20,855.9. Kospi is trading 0.7% lower, at 1,980.5.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading marginally lower.
Axa Plc is considering plans to branch into legal services to remain competitive in the market and continue to offer customers choice.
Britain’s defence secretary has warned that the French and German governments must reduce their stakes in EADS for the UK to allow a proposed merger with BAE Systems Plc.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 6.6 points down, while French CAC-40 futures are trading marginally lower.
According to “Welt am Sonntag”, BMW AG's motorcycle unit is mulling to improve vehicle sales both this year and in 2013 and is eyeing to expand its product portfolio and improve sales in Asia and America.
According to Reuters, PPR is preparing to sell its book and CD retailer Fnac and online fashion store La Redoute as part of a strategy to concentrate on business luxury and sports brands.
Commodities
In Asia, crude oil for November delivery is trading 0.5% or $0.42 lower at $89.45 per barrel.
On Friday, crude oil for November delivery fell 2.0% or $1.83 to $89.88 per barrel, as continued uncertainty about the European debt crisis overshadowed a report that showed surprise drop in the US unemployment rate. Additionally, there was no support for oil prices as fears that unrest in the Middle East and North Africa would lead to further supply problems begun to wane.
Gold for immediate delivery is trading 0.5% lower today, at $1,770.97 per ounce.
Gold for December delivery dropped 0.9% or $15.70 to $1,780.80 per ounce on Friday, as a dip in US unemployment rate in September weakened the case for any additional US Fed stimulus action, decreasing the demand for the yellow metal as an inflation hedge.
On Friday, copper 3-month futures fell 0.4% or $34.5, to close at $8,295.50 /MT. Aluminium 3-month futures rose 1.5% or $30.0, to close at $1,990.00 /MT.
Currencies
At 0400 BST today, the GBP is trading 0.2% lower against the USD at $1.6113, 0.1% higher against the EUR at €1.2396, and 0.2% lower against the JPY at ¥126.69.
The EUR is trading 0.3% lower against the USD at $1.2998 and 0.3% lower against the JPY at ¥102.22, ahead of reports due later in the day which are expected to show that German industrial production and exports dropped in August. Investors are also expected to remain watchful about the European Finance Ministers meet in Luxembourg today, while German Chancellor Angela Merkel is expected to visit Greece tomorrow.
The AUD is trading lower against the USD, before data due in the week which might show that unemployment in Australia increased in September.
On Friday, the USD ended lower against the EUR, as stronger-than-expected US economic data indicated that the world’s biggest economy is recovering and decreased demand for the dollar as a safe haven asset. The USD ended higher against the JPY.
However, the JPY traded higher earlier in the trading session, as the Bank of Japan kept its monetary policy unchanged and refrained from additional easing measures.
The CAD ended higher against the USD, after Canada reported strong jobs growth for September.
Macroeconomic Snapshot
On a quarterly basis, the GDP in eurozone fell 0.2% in the second quarter of the year, compared to a 0.3% drop in the previous quarter.
On a seasonally adjusted monthly basis, German factory orders declined 1.3% in August, compared to 0.3% growth recorded in July.
US non-farm payroll employment rose by 114,000 in September, compared to an upwardly revised increase of 142,000 in August. Meanwhile, the unemployment rate eased to 7.8% in September from 8.1% recorded in August.
US consumer credit jumped $18.2 billion in August, compared to a revised fall of $2.45 billion recorded in July.
On a weekly basis, the US ECRI leading index’s annualized growth rate rose to 4.7% from 3.7% rise recorded in the previous week.
The US federal budget deficit shrank by $207 billion this fiscal year, but stayed above the $1 trillion mark.
Japan’s leading index rose to a seasonally adjusted 93.6 in August, from 93.0 in July.
 

Wednesday 26 September 2012

September 26, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 5.5 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 16.4 points up, while French CAC-40 futures are trading 8.0 points higher.
At 0500 BST today, DJIA futures are trading 18.0 points up.
Nikkei 225 is trading 1.7% lower, at 8,935.7.
In Asia, crude oil for November delivery is trading 0.2% or $0.15 lower at $91.22 per barrel.
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.6190, slightly lower against the EUR at €1.2549, and marginally higher against the JPY at ¥125.90.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 18.0 points up.
Yesterday, DJIA shed 0.8% to end at 13,457.5. NASDAQ slipped 1.4% to settle at 3,117.7. S&P 500 slumped 1.1% to close at 1,441.6.
US stocks accelerated losses yesterday, as worries over global economic growth coupled with Spain’s funding problem overshadowed upbeat reports on the US housing market and consumer confidence. A Fed official criticized the central bank’s recent stimulus efforts, further weighing on investor sentiment.
Caterpillar fell 4.3%, as it slashed its long-term profit forecasts, amid concerns over capital expenditure by large commodity producers. Peer, Joy Global lost 5.5%, weighed down by Caterpillar’s profit warning.
Advanced Micro Devices slipped 5.2%, after FBR Capital Markets cut its price target on the stock. Tesla Motors and Forward Air tumbled 9.8% and 11.4%, respectively, as they lowered their third-quarter guidance.
Red Hat dropped 4.3%, as its second- quarter profit trailed market expectations. Apple lost 2.5%, as it sold out its initial inventories of the latest smart-phone, raising concern about keeping up with the demand.
After the closing bell, Yahoo edged up 0.2%, as it named Ken Goldman as its CFO, effective from 22 October.
Asian Market Snapshot
Asian stock markets are trading lower this morning, tracking Wall Street overnight and as a raft of Japanese stocks traded ex-dividend.
In Japan, Toyota and Nissan Motor logged losses, as both the stocks traded ex-dividend and amid reports that both would slash production in China.
In Hong Kong, BYD tumbled as CLSA Asia Pacific Markets slashed its price target on the stock, citing worsening outlook for its products. Hong Kong-listed Glencore International lost values, as it revised its offer to boost its stake in Kazakhstan's biggest zinc producer, Kazzinc.
In South Korea, POSCO and Hyundai Steel recorded losses, amid mounting concerns over sluggish global growth.
Nikkei 225 is trading 1.7% lower, at 8,935.7. Hang Seng index is trading 0.9% down, at 20,521.7, while the Kospi index is trading 0.6% lower, at 1,980.3.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 5.5 points higher.
AAR,  a consortium formed by BP’s Russian billionaire partners in TNK-BP are preparing an all-cash offer for the company’s 50% holding in the Russian oil venture.
Schroders’ more than 50-year-old auditing relationship with PwC is at risk after the company put its contract out to tender.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 16.4 points up, while French CAC-40 futures are trading 8.0 points higher.
According to “Handelsblatt”, ThyssenKrupp might have to offer incentives to possible buyers of its loss-making steel mills in Brazil and the US. Chief Executive Heinrich Hiesinger mulls to sell the mills separately for at least the book value of €7.0 billion.
S&P has assigned a rating of ‘BB-’ to CGGVeritas with negative outlook, a day after the group acquired the seismic data division of Dutch engineering company Fugro.
Commodities
In Asia, crude oil for November delivery is trading 0.2% or $0.15 lower at $91.22 per barrel.
Yesterday, crude oil for November delivery dropped 0.6% or $0.56 to $91.37 per barrel, after the Federal Reserve Bank of Philadelphia President Charles Plosser criticized the Federal Reserve’s decision to launch QE3, and stated that the central bank might have to raise short term interest rates "well before" the current forecast of mid-2015.
However, earlier in the session, crude was trading higher, on the back of ongoing geopolitical tensions in the Middle East, and after the release of better-than-expected housing and consumer confidence data from the US. Later in the day, the American Petroleum Institute (API) reported that US crude inventories had risen by 335,000 barrels to 361.8 million barrels  in the week ended September 21, marking the highest level since the week ended 24 August.
Gold for immediate delivery is trading 0.2% higher today, at $1,764.55 per ounce.
Gold for December delivery settled up 0.1% or $1.80 at $1,766.40 per ounce yesterday, supported by a positive US housing and consumer confidence data. Gold futures were also boosted on a report from the IMF that indicated global central banks have been adding to their gold reserves. However, gains were capped as negative comments from the Philadelphia Fed president helped the dollar trim some of its earlier losses weighing on the yellow metal.
Yesterday, copper 3-month futures rose 0.9% or $72.0, to close at $8,240.00 /MT. Aluminium 3-month futures dropped 0.3% or $5.0, to close at $1,975.00 /MT.
Currencies
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.6190, slightly lower against the EUR at €1.2549, and marginally higher against the JPY at ¥125.90. Markets await CBI sales data in UK later in the day.
The EUR is trading slightly higher against the USD at $1.2901.
The EUR is trading 0.1% higher against the JPY at ¥100.35. Earlier, the EUR was trading lower against the JPY before reports speculated to show a drop in Italian retail sales and European consumer confidence. The EUR also dropped on speculation that the political clash in Spain might impede attempts to resolve the region’s debt crisis.
The NZD is trading lower against the USD after New Zealand posted a higher-than-expected trade deficit in the 12 months through August.
The AUD is trading lower against the JPY after Catalonia president, Artur Mas, called for early elections as Spanish Prime Minister Mariano Rajoy struggles to gain acceptance for austerity measures, sapping demand for riskier assets.
Yesterday, the USD closed higher against the EUR as comments from a US Fed official that the central bank actions won’t boost economic growth overshadowed better-than-expected data on US home prices and consumer confidence.
The GBP gained against the EUR after a report showed that mortgage approvals in the UK rose unexpectedly in August, adding to signs the nation’s economy is improving.
The EUR closed lower against the JPY as Spain’s borrowing costs rose at a bill auction adding to signs the eurozone debt crisis is worsening.
Macroeconomic Snapshot
UK mortgage approvals rose unexpectedly to 30,533 in August, from 28,750 in July.
GfK forward-looking consumer sentiment index for Germany came in at 5.9 in October, unchanged from September.
French business confidence index remained at 90 in September, unchanged from August.
The Conference Board indicated that its consumer confidence index for the US jumped to 70.3 in September from a revised 61.3 in August.
The S&P/Case-Shiller 20-City composite home price index for the US rose by a seasonally adjusted 0.4% on a monthly basis in July compared to a 0.9% increase in the previous month.
According to Federal Housing Finance Agency, on a monthly basis, US house prices rose 0.2% in July, compared to a downwardly revised 0.6% increase in the previous month.

Tuesday 25 September 2012

September 25, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 11.2 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 26.0 points up, while French CAC-40 futures are trading 9.3 points higher.
At 0500 BST today, DJIA futures are trading 30.0 points up.
Nikkei 225 is trading 0.3% higher, at 9,095.3.
In Asia, crude oil for November delivery is trading 0.4% or $0.34 higher at $92.27 per barrel.
At 0400 BST today, the GBP is trading slightly higher against the USD at $1.6232, marginally higher against the EUR at €1.2539, and flat against the JPY at ¥126.35.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 30.0 points up.
Yesterday, DJIA edged down 0.2% to end at 13,558.9. NASDAQ shed 0.6% to settle at 3,160.8. S&P 500 slipped 0.2% to close at 1,456.9.
US stocks closed lower yesterday, as a discord between France and Germany over a timeframe for starting joint oversight of Europe’s banking sector soured market sentiment. Additionally, dismal economic reports from Germany and China weighed on investor sentiment.
Apple dropped 1.3%, amid reports of a brawl at one of its main manufacturing plants in China, raising concerns over its ability to meet escalating demand. Caterpillar dropped 0.9%, after the company cut its forecast for 2015 earnings.
Dell and Hewlett- Packard dropped 2.0% and 2.2%, respectively, as Evercore Partners cut its price targets on both companies. Facebook slumped 9.1%, after Barron's snubbed the stock, questioning the company’s value, amid persistent concerns about its mobile growth.
After the closing bell, Red Hat fell 2.9%, as its second-quarter earnings trailed market expectations. Neptune Technologies & Bioresources lost 3.8%, as it planned to offer an undisclosed number of shares.
Asian Market Snapshot
Asian markets are trading mostly lower this morning, tracking overnight losses on Wall Street, amid renewed concerns about global economic growth. However, markets in Japan rose before a deadline on dividends.
In Japan, Sharp rose after it submitted a restructuring plan to its creditors which projected a slight profit next year compared to a loss this year. Toyota Motors rose as it planned to expand its range of hybrid vehicles.
In Hong Kong, Standard Chartered fell, amid report that Tenmasek Holdings might sell its stake in the lender.
In South Korea, Hotel Shilla fell amid expectations of poor third-quarter earnings. LG Display lost values, after Apple reported debut sales for the iPhone 5 that fell short of some analysts’ estimates.
Nikkei 225 is trading 0.3% higher, at 9,095.3. Hang Seng index is trading 0.1% down, at 20,674.5, while the Kospi index is trading 0.4% lower, at 1,995.9.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 11.2 points higher.
The Financial Times reported that Singapore investment fund Temasek is seeking potential buyers for its 18.0% stake in Standard Chartered, valued at around £6 billion.
Glencore International entered into an agreement to boost its stake in Kazakhstan’s largest integrated zinc producer, Kazzinc from 50.7% to 69.61% through the purchase 18.9% stake worth $1.395 billion, from partner Verny Capital.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 26.0 points up, while French CAC-40 futures are trading 9.3 points higher.
German automotive parts supplier Schaeffler AG is mulling to raise around €1.65 billion by selling a 10.38% stake in Continental AG thereby reducing its stake to 49.9%.
Électricité de France (EDF) has signed a contract with Areva to obtain more than 30 000 tons of natural uranium for the period from 2014 to 2035.
Commodities
In Asia, crude oil for November delivery is trading 0.4% or $0.34 higher at $92.27 per barrel.
Yesterday, crude oil for November delivery declined 1.0% or $0.96 to $91.93 per barrel, as disagreement among European officials over the handling of region’s debt crisis and an unexpected decline in German business sentiment reignited worries over Europe’s ailing economy and demand prospect for crude oil. Oil prices also fell, as a stronger dollar reduced crude oil’s demand as an alternative investment.
Gold for immediate delivery is trading 0.1% higher today, at $1,765.60 per ounce.
Gold for December delivery settled down 0.8% or $13.40 at $1,764.60 per ounce yesterday, amid profit-booking following the recent rally in gold prices and as the dollar strengthened against the euro amid renewed worries over eurozone debt crisis.
Yesterday, copper 3-month futures fell 1.4% or $112.5, to close at $8,168.00 /MT. Aluminium 3-month futures dropped 2.2% or $45.0, to close at $1,980.00 /MT.
Currencies
At 0400 BST today, the GBP is trading slightly higher against the USD at $1.6232, marginally higher against the EUR at €1.2539, and flat against the JPY at ¥126.35, ahead of the release of UK BBA mortgage approvals data for August.
The EUR is trading slightly higher against the USD at $1.2946 and flat against the JPY at ¥100.78. However, gains were capped, ahead of reports which are expected to show that French business confidence worsened in September and consumer sentiment in Germany and Italy remained stagnated. Investors are also expected to keep close attention on a meeting between German Chancellor Angela Merkel and ECB President Mario Draghi to get further direction.
Yesterday, the EUR ended lower against the USD, after a report revealed that German business confidence unexpectedly dropped to the lowest level since March 2010 in September and on news of disagreement between German Chancellor Angela Merkel and French President Francois Hollande over tighter integration of Europe’s banking system.
The USD and JPY closed higher against the other major currencies, as intensifying concerns over euro-zone debt crisis spurred investment in safe haven currencies.
The AUD and NZD ended lower against the USD, amid rising worries over economic growth in China, their biggest trading partner. The AUD and NZD fell, as China’s Economic Information Daily stated that downward pressure on the Asian nation’s economy was increasing. Separately, a survey modelled on the US Federal Reserve’s Beige Book showed China’s manufacturers and retailers are less optimistic about sales than they were three months ago.
Macroeconomic Snapshot
Markit household finance index for the UK slipped to a reading of 38.4 in September, from 38.9 recorded in August.
The Ifo Business Climate Index for Germany eased to 101.4 in September from a reading of 102.3 recorded in August.
US Chicago Fed’s national activity index fell to a reading of -0.87 in August, down from a revised reading of -0.12 recorded in July.
Dallas Fed manufacturing business index rose to a reading of -0.9 in September, following a reading of -1.6 recorded in August.
On a seasonally adjusted yearly basis, the corporate services price index (CSPI) in Japan dropped 0.3% in August, compared to a revised drop of 0.3% recorded in July. 
On a same-store basis, super market sales in Japan in August dropped 1.3% from a year ago, after recording a drop of 4.9% in the previous month.
 

September 24, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 33.8 points lower.
At 0500 BST today, German DAX Xetra 30 futures are trading 7.7 points down, while French CAC-40 futures are trading 2.2 points lower.
At 0500 BST today, DJIA futures are trading 12.0 points down.
Nikkei 225 is trading 0.7% lower, at 9,050.4.
In Asia, crude oil for November delivery is trading 0.8% or $0.76 lower at $92.13 per barrel.
At 0400 BST today, the GBP is trading 0.2% lower against the USD at $1.6207, 0.2% higher against the EUR at €1.2529, and 0.3% lower against the JPY at ¥ 126.60.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 12.0 points down.
On Friday, DJIA edged down 0.1% to end at 13,579.5. NASDAQ ticked up 0.1% to settle at 3,180.0. S&P 500 slipped marginally to close at 1,460.2.
US stocks pared earlier gains and closed mostly lower on Friday, as mounting worries over floundering global economy overshadowed speculation about a probable Spanish bail-out.
Coca-Cola fell 1.6%, after SunTrust Banks announced it would sell its stake worth $ 1.2 billion in the company. FedEx dropped 1.0%, as investors continued to fret over its weak quarterly results.
Research In Motion tumbled 6.5%, after its service outage in Europe, the Middle East and Africa lasted several hours.
However, KB Home gained 16.4%, as it swung to a surprise third-quarter profit. Apple edged up 0.2%, as the latest iPhone 5 hit stores around the globe, while mobile carriers, supporting the new iPhone, Verizon Wireless, AT&T and Sprint Nextel advanced between 0.3% and 3.9%.
After the closing bell, MetLife jumped 2.7% as it amended terms to sell its online banking operation to GE Capital Retail Bank. Discover Financial edged up 0.4%, despite its settlement of around $200 million to cardholders over US phone marketing.
Asian Market Snapshot
Asian stock markets are trading lower this morning, amid an impasse in discussions to resolve the eurozone crisis as France and Germany disagreed over a timeframe to introduce joint oversight of the region’s banking sector.
In Japan, Komatsu and Hitachi Construction Machinery paced losses, as their US peer, Caterpillar reported growth in sales for June-August period slightly down from the increase posted for the May-July period.
In Hong Kong, China Eastern Airlines fell, after it announced a temporarily delay in introduction of a new route between Shanghai and Sendai.
In South Korea, Hyundai Securities and Hana Financial paced declines, amid dwindling risk appetite amongst traders. Samsung Electronics lost value after the successful launch of the latest smart-phone from Apple.
Nikkei 225 is trading 0.7% lower, at 9,050.4. Hang Seng index is trading 0.3% down, at 20,675.8, while the Kospi index is trading 0.5% lower, at 1,991.7.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 33.8 points lower.
The Sunday Times reported that BP, which is mulling to acquire a stake in Russian entity Rosneft, would appoint a prominent Russian to its board of directors as part of a new commercial alliance with the Kremlin.
According to a Thomson Reuters estimate, financial advisers on the proposed BAE-EADS merger could be in line to earn about $76 million.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 7.7 points down, while French CAC-40 futures are trading 2.2 points lower.
Daimler is expected to extend the contract of Chief Executive Dieter Zetsche by three years to 2016. It also plans to extend the contracts of trucks CEO Andreas Renschler and development chief Thomas Weber.
The Department of Justice (DoJ) announced that Lucent Technologies World Services, an Alcatel-Lucent subsidiary, has agreed to pay the US $4.2 million to settle claims allegations linked to its contracts in Iraq.
Commodities
In Asia, crude oil for November delivery is trading 0.8% or $0.76 lower at $92.13 per barrel.
On Friday, crude oil for November delivery gained 0.5% or $0.47 to $92.89 per barrel, capping sharp declines recorded earlier in the week, on rising optimism that Spain was moving closer to seeking a sovereign-debt bailout package and as the dollar weakened against the euro, increasing the demand for the commodities as an alternative investment.
Gold for immediate delivery is trading 0.8% lower today, at $1,759.75 per ounce.
Gold for December delivery settled up 0.4% or $7.80 at $1,778.00 per ounce on Friday, as the dollar weakened against the major currencies, increasing the demand for the precious metal as a hedge against inflation.
On Friday, copper 3-month futures gained 0.7% or $60.5, to close at $8,280.50 /MT. Aluminium 3-month futures traded flat to close at $2,025.00 /MT.
Currencies
At 0400 BST today, the GBP is trading 0.2% lower against the USD at $1.6207, 0.2% higher against the EUR at €1.2529, and 0.3% lower against the JPY at ¥126.60.
The EUR is trading 0.4% lower against the USD at $1.2937 and 0.5% lower against the JPY at ¥101.05, on news that Germany and France have disagreed on a timeframe to centralize European banking supervision and ahead of a report which is expected to show German business confidence stayed near the lowest in more than two years in September.
The AUD is trading lower against the USD, on concerns that slowing Asian economies and uncertainty over eurozone debt crisis might hamper Australia's economic growth rate later this year.
On Friday, the EUR ended higher against the USD, amid rising speculation that Spain might soon request financial aid to boost its faltering economy. According to a report, Spain is considering freezing pensions and speeding up a planned rise in the retirement age as it attempts to cut spending and meet conditions of an expected international aid package.
The GBP closed higher against the USD, following better-than-expected UK public sector borrowing numbers for August and as demand for riskier currency increased amid optimism over Spain’s stance on the bailout package.
The USD ended lower against the EUR and other major counterparts, as demand for the safe haven currency decreased amid mounting optimism that central banks stimulus would revive the global economic growth.
Macroeconomic Snapshot
Knight Frank/Markit's house price sentiment index in the UK rose to a reading of 46.8 in September, compared to a reading of 44.5 recorded in August.
UK public sector net borrowing (PSNB) stood at £14.4 billion in August, the biggest deficit for the month since records began.
The European Central Bank (ECB) Executive Board member, Benoit Coeure stated that, policy makers at the ECB are unlikely to cut interest rates further, given the high inflation rate and improvement in Euro-area's economic outlook.
The ECB Executive Board member, Peter Praet in an opinion piece in German Finance Ministry's monthly report wrote that, inflation expectations in the eurozone are firmly anchored.
The Conference Board Leading Economic Index for Germany edged up 0.1% to a reading of 102.6 in July.
For the week ended 14 September 2012, the ECRI Leading US Index rose 2.7% to 125.4, from 124.7 in the previous week.
 

Friday 21 September 2012

September 21, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 13.6 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 10.0 points up, while French CAC-40 futures are trading 10.0 points higher.
At 0500 BST today, DJIA futures are trading 34.0 points higher.
Nikkei 225 is trading 0.6% higher, at 9,142.3.
In Asia, crude oil for November delivery is trading 0.6% or $0.60 higher at $93.02 per barrel.
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.6231, flat against the EUR at €1.2503, and 0.1% higher against the JPY at ¥127.00.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 34.0 points higher.
Yesterday, DJIA edged up 0.1% to settle at 13,596.9. NASDAQ inched 0.2% lower to end at 3,176.0. S&P 500 dropped 0.1% to close at 1,460.3.
US markets closed mostly lower yesterday, as weak economic reports from China, Japan, Europe and the US rattled investors sentiment, increasing concern about global economic growth.
Citigroup, Goldman Sachs and Morgan Stanley declined between 1.1% and 2.1%, as UBS downgraded its rating on these stocks to “Neutral” from “Buy”. Bank of America fell 1.1%, as it mulled to cut about 16,000 jobs by the year end.
Norfolk Southern slumped 9.1%, after it projected third-quarter earnings that trailed market expectations. Green Mountain Coffee Roasters slumped 9.6%, as Starbucks revealed its own line of single-serve coffees and electric brewers, intensifying competition.
However, Exxon Mobil gained 1.1%, as it agreed to acquire Denbury Resources Bakken oil shale assets for $1.6 billion. ConAgra Foods rose 6.2%, as it raised its first-quarter dividend and boosted its profit forecast.
After the closing bell, McDonald's edged up 0.1%, as it increased its quarterly dividend by 10%. Michael Kors added 3.6%, as it raised its second-quarter and full-year earnings and revenue guidance.
Asian Market Snapshot
Asian stock markets are trading higher this morning, tracking positive cues from the Dow Jones Industrial Average, as recent moves by global central banks continued to help sentiment.
In Japan, Sharp gained value, amid report that it is in talks with Intel for capital tie-up. Carriers of the iPhone, Softbank and KDDI advanced, as iPhone 5 hit shelves in Japan.
In Hong Kong, AIA traded higher, following a managerial appointment, while CNOOC gained values, as Nexen approved its takeover bid.
In South Korea, Samsung Electronics, that gets 9% of its sales from Apple, gained value as the new iPhone went on sale.
Nikkei 225 is trading 0.6% higher, at 9,142.3. Hang Seng index is trading 0.8% up, at 20,764.5, while the Kospi index is trading 0.5% higher, at 2,000.0.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 13.6 points higher.
The UK lawmakers have demanded G4S to waive its $92 million management fee for its failure to provide thousands of security guards for the Olympic Games.
The Daily Telegraph reported that JJB sports was “hesitant” to report it had been incorrectly applying VAT to children’s clothing resulting in a £5 million tax liability.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 10.0 points up, while French CAC-40 futures are trading 10.0 points higher.
According to “Süddeutsche Zeitung”, Deutsche Bank would cut thousands of jobs in Germany, with around 543 jobs being scrapped in Bonn and Frankfurt.
Vinci Energies, one of the five divisions of the construction group Vinci, has announced the acquisition of the Indian company Vasundara, which specializes in industrial automation and robotic solutions.
Commodities
In Asia, crude oil for November delivery is trading 0.6% or $0.60 higher at $93.02 per barrel.
Yesterday, crude oil for October delivery fell 0.1% or $0.11 to $91.87 per barrel, as disappointing preliminary manufacturing data from Europe and China sparked worries over slowing global economic growth and demand outlook for crude oil. The contract expired at the end of floor trading. The most actively traded November delivery contract gained $0.12 to settle at $92.42 per barrel.
However, later in the trading session oil prices pared some losses, after data showed that manufacturing activity in the Philadelphia-region improved more-than-expected in September.
Gold for immediate delivery is trading 0.1% higher today, at $1,771.75 per ounce.
Gold for December delivery settled down 0.1% or $1.50 at $1,770.20 per ounce yesterday, as the dollar strengthened against the euro decreasing the demand for the yellow metal as a hedge against inflation. 
Yesterday, copper 3-month futures fell 1.3% or $110.5, to close at $8,220.00 /MT. Aluminium 3-month futures dropped 1.5% or $30.0, to close at $2,025.00 /MT.
Currencies
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.6231, flat against the EUR at €1.2503, and 0.1% higher against the JPY at ¥127.00.
The EUR is trading marginally higher against the USD at $1.2980 and 0.1% higher against the JPY at ¥101.57, ahead of the meeting between Spanish Prime Minister Mariano Rajoy and his Italian counterpart Mario Monti in Rome. However, gains were capped, ahead of data due next week which is forecasted to show German business sentiment remained near the lowest in more than two years in September.
Yesterday, the EUR ended lower against the USD and other major currencies, after data revealed that eurozone composite PMI fell unexpectedly to a three-year low in September. The EUR also fell, as Spanish bond yields rose for the first time in three days.
The USD and the JPY closed higher against other currencies, as dismal economic data from China and the eurozone reignited worries about global economic growth, spurring demand for the safe haven assets. A separate report revealed that US jobless claims dropped less-than-expected last week.
The AUD ended lower against the USD, after a report indicated that manufacturing activity in China declined for an eleventh month in September, dampening prospects for the nation’s resource exports.
The NZD closed higher against the USD, after data showed that New Zealand’s economic growth slowed less-than-estimated in the second quarter of 2012 on the back of stronger farm output and construction.
Macroeconomic Snapshot
On a month-on-month basis, retail sales in the UK dropped 0.2% in August, compared to a 0.3% rise recorded in July.
The composite Purchasing Managers’ Index (PMI) in the eurozone fell to a reading of 45.9 in September, from 46.3 in the previous month.
The consumer confidence index in the eurozone fell to a reading of -25.9 in September, from -24.6 recorded in August.
The preliminary manufacturing PMI in the US stood at a reading of 51.5 in September, unchanged from the previous month.
For the week ended 15 September 2012, initial jobless claims in the US fell to 382,000, from the previous week's revised figure of 385,000. However, for the week ended 8 September 2012, continuing claims in the US fell to 3.272 million.
The Conference Board Leading Economic Index for the US dipped 0.1% in August, compared to a revised 0.5% increase recorded in July.
On a yearly basis, machine tool orders in Japan dropped 2.7% in August, compared to 6.7% decrease recorded in the previous month.