Thursday 31 May 2012

May 31, 2012 Financial Market Summary


DJIA slumped 1.3% to close at 12,419.9. NASDAQ shed 1.2% to settle at 2,837.4. S&P 500 tumbled 1.4% to end at 1,313.3.
Nikkei 225 index is trading 1.8% lower at 8,474.6.
FTSE 100 tumbled 1.7% to settle at 5,297.3.
FTSEurofirst 300 index fell 1.5% to end at 975.7.
In Asia, crude oil for July delivery is trading 0.2% or $0.18 lower at $87.64 per barrel.
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5476, marginally lower against the EUR at €1.2509, 0.3% lower against the JPY at ¥121.84.
US Market Snapshot
US markets fell sharply yesterday, erasing most of the previous session gains, on disappointing domestic housing data and as rising bond yields in Spain and Italy increased concern the debt crisis is spreading. Research In Motion slipped 7.8%, as it forecasted an unexpected operating loss for the fiscal first-quarter. Nabors Industries, Quicksilver Resources, Denbury Resources and Rowan tumbled between 3.9% and 6.2%, as oil prices fell to a 7-month low on weak demand prospects. Alcoa, FedEx and Chevron declined between 2.3% and 3.5%, amid concerns about the global economic outlook, while Caterpillar lost 2.5%, as it agreed to dispose a distribution-and-support business in South Africa and Botswana. Medical-device maker, Synergetics USA plunged 28.1%, as its preliminary third-quarter results trailed market expectations.
DJIA slumped 1.3% to close at 12,419.9. NASDAQ shed 1.2% to settle at 2,837.4. S&P 500 tumbled 1.4% to end at 1,313.3.
Asian Market Snapshot
Asian markets are trading lower this morning, taking cues from overnight losses on Wall Street, amid concerns about deteriorating situation in Europe and weak Japanese economic data. In Japan, Hitachi Construction Machinery and Komatsu lost values on a report that Japan’s industrial output rose less-than-expected. In Hong Kong, Agricultural Bank of China traded lower, on news that it’s Vice-President is under investigation by the Communist Party's discipline authorities. Retailer, Pou Sheng International paced decline after the company posted a loss for the six months ended in March. In South Korea, refiners, SK Innovation and S-Oil, paced lower, in line with a fall in crude oil prices.
Nikkei 225 index is trading 1.8% lower at 8,474.6. Hang Seng index is trading 1.2% lower at 18,471.8 while the Kospi index is trading 1.3% lower, at 1,820.9.
UK Market Snapshot
UK markets fell sharply yesterday, as a surge in benchmark yield at an auction of Italian debt and concerns about the viability of Spanish banks fuelled concerns of contagion in the euro area. Among miners, ENRC, the top decliner of the FTSE 100 index, tumbled 6.6%, while Antofagasta, Rio Tinto, Kazakhmys and Vedanta Resources declined between 3.9% and 5.4%, as base metal prices fell, after China dampened speculation for a massive stimulus to boost the country’s economic growth. Lloyds Banking Group and Royal Bank of Scotland dropped 2.3% and 3.0%, respectively, amid reports that the ECB had rejected a Spanish plan to recapitalize its distressed bank Bankia. Royal Dutch Shell and Tullow Oil lost 1.3% and 3.3%, respectively, as crude oil prices dropped. National Grid slumped 4.5%, as it traded ex-dividend.
FTSE 100 tumbled 1.7% to settle at 5,297.3, while FTSE 250 slumped 1.5% to close at 10,494.8.
European Market Snapshot
Other European markets closed sharply lower yesterday, as Italy failed to meet its maximum target at a bond auction and after a poll in Greece showed increased support for anti-bailout parties. Continued concerns about Spain’s troubled banking system also weighed on market sentiment. Financial sector stocks, Bankia, National Bank of Greece and Deutsche Bank lost between 0.7% and 8.6%, after the ECB stated that the Spanish government had not consulted it on any plans to recapitalize a major bank. BASF dropped 1.7%, after its CEO stated that the company’s business momentum in Asia is weaker than expected. Societe Television Francaise 1 tumbled 5.7%, after a broker stated that the company might lose about €40.0 million in revenues if the French government lifts its advertising ban on France TV.
FTSEurofirst 300 index fell 1.5% to 975.7. German DAX Xetra 30 dropped 1.8% to 6,280.8. French CAC-40 closed 2.2% lower at 3,015.6.
Commodities
In Asia, crude oil for July delivery is trading 0.2% or $0.18 lower at $87.64 per barrel. Yesterday, crude oil for July contract fell 3.2% or $2.94 to end at $87.82 per barrel, barrel, amid concerns that the European debt crisis could spread to larger economies in the region as Spain’s default risk rose to a record and Italy’s debt auction failed to meet its maximum target, and as the US dollar strengthened against the major currencies.
Gold for immediate delivery is trading 0.1% lower today, at $1,562.58 per ounce. Gold for August delivery rose 1.0% or $14.70 to settle at $1,565.70 per ounce yesterday, as mounting concerns about Greece, Spain and Italy and a fall in US pending home sales, spurred purchase of the precious metal as an alternative investment.
Currencies
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5476, marginally lower against the EUR at €1.2509, 0.3% lower against the JPY at ¥121.84.
The EUR is trading marginally lower against the USD at $1.2373.
The EUR is trading 0.3% lower against the JPY at ¥97.42, ahead of a release of data that might show the jobless rate reached to a record high and manufacturing activity contracted in the eurozone.
The JPY is trading higher against most of its major peers, as concerns about Spain’s banking system, fall in euro region’s consumer confidence, and a poll that showed a rise in support for political party opposing spending cuts in Greece, spurred demand for safe haven assets.
Yesterday, the EUR closed lower against the USD and the JPY, as Spain, Italy and Greece struggled to recover from the European sovereign debt crisis, raising speculation that debt crisis might spread to the region’s other economies.
The GBP closed lower against the USD, amid mounting speculation that Europe’s contagion would harm the UK’s economic outlook. The AUD and NZD finished lower against the USD, as mounting concerns about the economic situation in eurozone, reduced the demand for high-yielding assets. The CAD dropped against the USD, as prospects of an interest rate hike by the Bank of Canada decreased amid fears that global growth is faltering. The currency also lost value, as lower commodity prices decreased the demand for the commodity linked currency.

Wednesday 30 May 2012

May 30, 2012 Financial Market Summary

DJIA gained 1.0% to close at 12,580.7.NASDAQ surged 1.2% to settle at 2,871.0. S&P 500 soared 1.1% to end at 1,332.4.
Nikkei 225 index is trading 1.0% lower at 8,571.9.
FTSE 100 added 0.6% to settle at 5,391.1.
FTSEurofirst 300 index added 0.7% to end at 991.0.
In Asia, crude oil for July delivery is trading 0.4% or $0.38 lower at $90.38 per barrel.
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5613, marginally lower against the EUR at €1.2527, 0.2% lower against the JPY at ¥124.09.
US Market Snapshot
US markets rallied sharply yesterday, as rising prospects that Greece would remain in the euro and hopes that China would introduce fresh stimuli to boost its economic growth outweighed a disappointing reading on US consumer confidence. Chesapeake Energy advanced 3.4%, as the activist investor, Carl Icahn reported a 7.6% stake in the company on Friday and called for change of at least four directors. Coal producers, Consol Energy and Peabody Energy rallied 1.8% and 5.6%, respectively, as Goldman Sachs raised its recommendation for the sector to “Attractive” from “Neutral”. PulteGroup and DR Horton advanced 2.0% and 2.5%, respectively, after as a report showed US home prices stabilized in the year ended March. Caterpillar rose 2.9%, amid speculation that China was preparing a new round of stimulus measures.
DJIA gained 1.0% to close at 12,580.7.NASDAQ surged 1.2% to settle at 2,871.0. S&P 500 soared 1.1% to end at 1,332.4.
Asian Market Snapshot
Asian markets are trading lower this morning, as China dampened expectations of a massive economic stimulus and as rising concerns about the health of Spanish banking sector and their potential to worsen Europe's debt crisis weighed on market sentiment. In Japan, energy sector stocks, JX Holdings, Japan Petroleum Exploration and Inpex, paced declines, as crude oil prices retreated. Exporters, Sony, Toshiba and Sharp lost values, as the yen appreciated against the dollar. In Hong Kong, Bank of Communications, Haitong Securities and China Life Insurance traded lower, as risk appetite decreased among investors. In South Korea, GS Retail lost value, after the country’s Fair Trade Commission mulled to ban convenience store operators from opening multiple stores in a 500-meter radius.
Nikkei 225 index is trading 1.0% lower at 8,571.9. Hang Seng index is trading 2.2% lower at 18,643.3 while the Kospi index is trading 0.9% lower, at 1,833.1.
UK Market Snapshot
UK markets ended higher yesterday, led by gains in mining sector stocks, amid speculation that China would increase stimulus to boost its economy. Investors also responded positively to encouraging housing market data in the US. Miners advanced, with BHP Billiton, Anglo American, Rio Tinto, Anglo American and Kazakhmys climbing between 1.3% and 2.9%, amid reports of approval of some new steel plants in China. Kazakhmys and Rio Tinto also rose following a “Buy” recommendation from Societe Generale. Tullow Oil added 3.1%, following last week’s drilling update in Kenya. BG Group gained 1.6%, after it agreed to sell its entire 60.1% stake in Comgas. International Airlines Group rallied 4.1%, as UBS reiterated its “Buy” rating on the stock, while InterContinental Hotels rallied 2.3%, amid speculation that it might become a takeover target.
FTSE 100 added 0.6% to settle at 5,391.1, while FTSE 250 surged 1.4% to close at 10,657.9.
European Market Snapshot
Other European markets closed higher yesterday, as prospect for more stimulus measures in China and signs of stabilization in the US housing market buoyed market sentiment.. However, gains were limited as concerns grew that Spanish banks would need more financial support to withstand Eurozone’s debt crisis. Steelmaker, ArcelorMittal, climbed 4.1%, after HSBC raised its recommendation on the stock to “Overweight” from “Neutral”. Volkswagen, Bayerische Motoren Werke and Daimler, gained between 2.5% and 3.9%, on hopes that China’s efforts to fuel its economic growth might boost exports for the carmakers. Oilfield-services firm, CGGVeritas, rallied 5.7%, after UBS upgraded the stock to “Buy” from “Neutral”. Valeo added 3.9%, after positive comments from a broker.
FTSEurofirst 300 index added 0.7% to 991.0. German DAX Xetra 30 rose 1.2% to 6,396.8. French CAC-40 closed 1.4% higher at 3,084.7.
Commodities
In Asia, crude oil for July delivery is trading 0.4% or $0.38 lower at $90.38 per barrel. Yesterday, crude oil for July delivery eased 0.1% or 10 cents to settle at $90.76 per barrel, amid concerns about the European economic problems after Egan-Jones Ratings downgraded Spain’s credit rating to junk status. However, losses were limited amid concerns about supply disruptions as dispute between western power and Iran over its nuclear program remained unresolved and as a report showed that China's biggest banks had accelerated lending.          
Gold for immediate delivery is trading 0.4% lower today, at $1,547.36 per ounce. Gold for August delivery fell 1.3% or $20.20 to settle at $1,551 per ounce yesterday, as the dollar appreciated against the euro and as investors continued to focus on Spain’s deteriorating financial situation after a credit rating agency downgraded Spain’s credit rating to “B” from “BB-”.
Currencies
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5613, marginally lower against the EUR at €1.2527, 0.2% lower against the JPY at ¥124.09.
The EUR is trading 0.1% lower against the USD at $1.2464. The EUR is trading 0.2% lower against the JPY at ¥99.06.
The EUR is trading lower against the USD and the JPY, amid speculation that the European debt crisis would worsen, after Spain’s borrowing costs climbed. EUR also traded lower before the release of a report on consumer confidence in the euro area.
The AUD is trading lower against most of its major peers, amid speculation that the Reserve Bank of Australia would lower its borrowing costs, after a report showed that retail sales in Australia unexpectedly declined in April.
The NZD is trading lower against the USD and the JPY, after report showed that home building approvals in New Zealand declined 7.2% in April from a revised 19.6% gain in March.

Yesterday, the EUR finished lower against most of its major peers, after Egan-Jones downgraded Spain's credit rating to “B” from “BB-” and after reports showed that Spanish retail sales declined in April. The GBP closed higher against the EUR, as investors preferred the relative safety of the British currency, after Spain announced that it might need to sell bonds for a banking rescue. The currency also appreciated after an index of UK retail sales rose to its highest level in more than a year in May. The CAD ended lower against the USD, as a drop in base metal and crude oil prices decreased the demand for the commodity linked currency.

May 29, 2012 Financial Market Summary

US markets were closed on account of a public holiday.
Nikkei 225 index is trading 0.4% lower at 8,562.9.
FTSE 100 edged up 0.1% to close at 5,356.3. FTSEurofirst 300 index eased 0.1% to 984.0.
In Asia, crude oil for July delivery is trading 0.6% or $0.51 higher at $91.17 per barrel.
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5673, 0.1% lower against the EUR at €1.2506, 0.1% lower against the JPY at¥124.51.
US Market Snapshot
US markets were closed yesterday on account of a public holiday.
Asian Market Snapshot
Asian markets are trading mostly higher this morning, as concern eased that Greece would leave the currency bloc and on hopes that China would take additional measures to bolster the country’s economic growth. In Japan, Nomura Holdings lost value, on report that it would face sanctions from the Securities and Exchange Surveillance Commission for allegedly leaking information about public share offerings for Inpex and Mizuho Financial Group. Renesas Electronics slumped after the firm stated that it would outsource chip production to Taiwan Semiconductor Manufacturing. In Hong Kong, Cnooc and Petrochina traded higher tracking a rise in crude oil prices. Agile Property Holding and China Resources Land gained values amid ongoing hopes of additional stimulus from the Chinese government. In South Korea, LG Display gained value on news that it has developed the world's first full HD LCD smartphone display panel.
Nikkei 225 index is trading 0.4% lower at 8,562.9. Hang Seng index is trading 0.1% higher at 18,821.5, while the Kospi index is trading 0.6% higher, at 1,836.0.
UK Market Snapshot
UK markets advanced yesterday, as results of Greek opinion polls eased concerns over its exit from the Euro-bloc. However, continued worries over the health of Spanish banking system weighed on market sentiment. BHP Billiton, Antofagasta and Rio Tinto rose between 0.8% and 2.2%, tracking higher copper prices and as Citigroup upgraded its short-term view on the copper industry from “Bearish” to“Neutral”. Outsourcing group, Capita added 3.0%, as UBS upgraded the stock from“Neutral” to “Buy”, while Aggreko inched up 0.8%, following a broker upgrade on the stock from “Sell” to “Add”. Aero-engine maker, Rolls-Royce added 1.0%, amid news that its contract worth £100 million had been extended by the Royal Air Force. Packaging major, Rexam climbed 2.1%, as the company moved a step closer to a deal for the sale of its personal-care unit.
FTSE 100 edged up 0.1% to close at 5,356.3, while FTSE 250 ticked up 0.9% to settle at 10,515.3.
European Market Snapshot
Other European markets slid yesterday, as early gains following Greek opinion polls that showed support for pro-austerity parties were erased on continued concerns about Spanish banking sector. Bankia tumbled 13.4%, as UBS downgraded the stock to “Sell” from “Neutral”, while Nomura and JP Morgan Cazenove trimmed their price targets on the stock, after the company, late Friday, asked the government for €19 billion of state funds. Among other financial stocks, Banco Popular and Bankinter, sank 4.3% and 7.5%, respectively, after S&P’s Ratings Services cut the debt rating of these companies to “Junk” status on Friday. Utilities, EON and RWE dropped 1.8% and 2.5%, respectively, following report that the German Environment Minister would push forward the country’s switch away from nuclear energy. Total eased 0.3%, despite a rise in crude oil prices.
FTSEurofirst 300 index eased 0.1% to 984.0. German DAX Xetra 30 declined 0.3% to 6,323.2. French CAC-40 closed 0.2% lower at 3,043.0.
Commodities
In Asia, crude oil for July delivery is trading 0.6% or $0.51 higher at $91.17 per barrel. Yesterday, crude oil for July delivery rose 0.3% or 28 cents to $91.14 per barrel in electronic trading on the New York Mercantile Exchange, as talks over Iran’s nuclear program faltered, increasing concerns about Middle East oil supply. Crude oil also traded higher after Greek opinion polls showed support for a pro-austerity government in Greece. Floor trading was closed yesterday on account of the US Memorial Day holiday.
Gold for immediate delivery is trading marginally lower today, at $1,574.46 per ounce. Gold for June delivery rose $4.10 or 0.3%, to $1,573 per ounce in electronic trading yesterday, as the dollar depreciated against the euro, increasing the demand for the yellow metal as an alternative investment. Floor trading was closed yesterday on the account of the US Memorial Day holiday.
Currencies
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5673, 0.1% lower against the EUR at €1.2506, 0.1% lower against the JPY at¥124.51.
The EUR is trading 0.1% higher against the USD at $1.2533.
The EUR is trading 0.1% lower against the JPY at ¥99.56.
The AUD and NZD are trading lower, amid fears that eurozone problems would hurt the region’s economic growth, lowering the demand for high-yielding assets. The AUD is also trading lower against most of its major peers, amid speculation that eurozone data due to be released might show consumer confidence remained weak in May and jobless rate rose in April.
The EUR is trading lower against the JPY, as Italy sells €3.5 billion of five-year notes and €2.75 billion of 10-year debt tomorrow and ahead of key economic data from the eurozone this week.
Yesterday, the EUR closed higher against the USD and CHF, after Greek polls showed support for pro-bailout parties, easing concerns that Greece might the exit from the Euro-bloc. The JPY ended higher against the USD, after a report showed that average monthly household spending in Japan rose 2.6% to ¥301,948 in April on an annual basis and after minutes of the Bank of Japan’s meeting held on 27 April dampened speculation that the officials would increase monetary easing to achieve a 1% inflation goal. The GBP finished lower against most of its major peers, amid speculation that UK reports this week would show consumer confidence worsened in May and manufacturing shrank.

May 28, 2012 Financial Market Summary


DJIA slid 0.6% to close at 12,454.8. NASDAQ edged down 0.1% to settle at 2,837.5. S&P 500 ticked 0.2% lower to end at 1,317.8.
Nikkei 225 index is trading marginally lower at 8,579.0.
FTSE 100 marginally advanced to 5,351.5.
FTSEurofirst 300 index added 0.2% to 985.0.
In Asia, crude oil for July delivery is trading 86 cents higher at $91.72 per barrel.
At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5694, 0.3% lower against the EUR at €1.2465 and 0.1% down against the JPY at ¥124.63.
US Market Snapshot
US markets slid on Friday, as persistent worries over the European debt crisis, with growing concerns over the Spanish banking system, overshadowed an upbeat reading on US consumer confidence. Retailer, Talbots plummeted 41.0%, as it terminated its exclusive due-diligence agreement with private equity firm, Sycamore Partners without a take-over offer. Medical device developer, Delcath Systems, the top laggard on the NASDAQ composite index, plunged 37.0%, as it planned to sell more stock at a sharp discount. VeriFone Systems slumped 15.5%, as its third quarter guidance trailed market expectations. Caterpillar and Boeing retreated 1.6% and 1.9%, respectively, amid weak economic outlook. Chevron slipped 1.2%, as shareholders urged Chevron to settle a nearly 20-year legal battle in the Ecuadorian rainforest.
DJIA slid 0.6% to close at 12,454.8. NASDAQ edged down 0.1% to settle at 2,837.5. S&P 500 ticked 0.2% lower to end at 1,317.8.
Asian Market Snapshot
Asian markets are trading lower this morning, taking cues from Wall Street on Friday, and after the Bank of Japan highlighted that it would refrain from additional asset purchase and China reported lower industrial company profits. In Japan, Renesas Electronics lost value, after the company announced that it would raise ¥100 billion in fresh capital to fund its restructuring plan. In Hong Kong, China Coal Energy and Jiangxi Copper traded lower, after the statistics bureau reported that industrial companies’ earnings fell 2.2% in April on an annual basis. GOME Electrical Appliances Holding lost values, after the company reported that its first-quarter profit plunged by 88.0%.
Nikkei 225 index is trading marginally lower at 8,579.0. Hang Seng index is trading marginally lower at 18,705.0, while South Korean markets are closed on account of Buddha’s Birthday.
UK Market Snapshot
UK markets ended on a mixed note on Friday, with the FTSE 100 index eking out a modest gain, as lingering concerns about the European debt and speculation over Chinese lenders missing their loan targets offset upbeat readings on US consumer confidence. Car insurer, Admiral, up 3.0%, topped the FTSE 100 index, following a fall in whiplash claims. Power provider, Aggreko gained 2.4%, as HSBC upgraded its recommendation on the stock to “Overweight” from “Neutral”. Tullow Oil added 2.4%, as it revealed a positive oil drilling update in Kenya. United Utilities rose 1.9%, as Nomura raised its price target on the stock, citing the company’s upbeat results for the last year. Aviva gained 0.2%, after Exane BNP Paribas upgraded the stock from “Underperform” to “Outperform”, while Vodafone added 0.8%, as Fitch Rating opined that the company’s outlook was stable.
FTSE 100 marginally advanced to 5,351.5, while FTSE 250 slid 0.5% to end at 10,417.5.
European Market Snapshot
Other European markets closed in the positive territory on Friday, following a rise in consumer confidence data in the US, France and Germany, and after positive comments from Italian Prime Minister, Mario Monti, about the European Union leaders’ support to collective debt sales. Utilities, EON and RWE, rose 1.5% and 1.6%, respectively, on news that Germany’s largest utilities might sell their UK nuclear power project to China. EON also gained value, after HSBC upgraded the stock to “Neutral” from “Underweight”. Siemens climbed 2.3%, after the company stated that its lighting unit, Osram, would build a new chip assembly plant in China. Nexans rallied 4.6%, after a broker upgraded the stock to “Buy” from “Reduce”. Alcatel-Lucent added 4.5%, after a newspaper reported that the company might achieve $1.0 billion of core router sales.
FTSEurofirst 300 index added 0.2% to 985.0. German DAX Xetra 30 advanced 0.4% to 6,339.9. French CAC-40 closed 0.3% higher, at 3, 047.9.
Commodities
In Asia, crude oil for July delivery is trading 86 cents higher at $91.72 per barrel. On Friday, crude oil for July delivery gained 0.2% or 20 cents, to settle at $90.86 per barrel, as demand prospects improved, following better-than-expected US consumer confidence data. Crude oil also gained value, amid supply concerns, after the United Nations’ atomic agency reported that Iran has boosted its output of enriched uranium that could be used for a nuclear weapon.
Gold for immediate delivery is trading 0.2% higher today, at $1575.66 per ounce. Gold futures for June delivery advanced 0.7% or $11.40 to $1,568.90 per ounce on Friday, as the dollar depreciated against the euro initially, increasing the demand for the yellow metal as a hedge against inflation.
Currencies
At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5694, 0.3% lower against the EUR at €1.2465 and 0.1% down against the JPY at ¥124.63. A Hometrack report stated that the average price of a home in the UK rose 0.2% in May, compared to a 0.1% rise recorded in April.
The EUR is trading 0.6% higher against the USD at $1.2591 and is up 0.3% against the JPY at ¥99.83, Amid receding fears about Greece’s exit from the euro bloc, after a survey data showed that Greek voter might chose a party supporting the EU’s bailout.
The JPY is trading higher against the USD, after minutes released from the Bank of Japan’s last week in April dampened speculation that the country’s central bank would expand its monetary policy to achieve its 1.0% inflation goal.
On Friday, the USD closed higher against the EUR, amid speculation that the European Central Bank could add more stimulus measures in the economy.
The AUD and NZD finished lower against the USD, following reports that showed the Chinese economy might falter, decreasing demand for high-yielding assets.

May 25, 2012 Financial Market Summary

DJIA edged up 0.3% to close at 12,529.8. NASDAQ fell 0.4% to settle at 2,839.4. S&P 500 rose 0.1% to end at 1,320.7.
Nikkei 225 index is trading 0.1% higher, at 8,570.9.
FTSE 100 surged 1.6% to settle at 5,350.1.
FTSEurofirst 300 index added 1.1% to 982.6.
In Asia, crude oil for July delivery is trading 0.1% or 13 cents lower at $90.53 per barrel.
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5651, slightly up against the EUR at €1.2495 and marginally down against the JPY at ¥124.73.
US Market Snapshot
US markets closed mostly higher yesterday, as positive comments from the Italian premier on Greece and issuance of Euro bonds boosted market sentiment, offsetting China growth fears. Hewlett-Packard, the top gainer on the DJIA index, added 3.3%, as its quarterly earnings surpassed market expectations and after it planned to lay off 8% of its employees. Wholesale-club operator, Costco rose 1.4%, as it posted better-than-expected earnings, while Dow Chemical rallied 3.4%, as it was awarded $2.16 billion after winning a legal case against Kuwait's Petrochemical Industries. Pandora Media surged 12.3%, as its fast-growing sales figure topped market expectations. However, NetApp plunged 12.3% and led the technology sector lower, following its weak sales forecast.
DJIA edged up 0.3% to close at 12,529.8. NASDAQ fell 0.4% to 2,839.4. S&P 500 rose 0.1% to 1,320.7.
Asian Market Snapshot
Asian markets are trading mostly higher this morning, as a rise in Japan’s core consumer prices in April overshadowed fears that China’s largest banks to fall short of loan targets for the first time in at least seven years. In Japan, Japan Tobacco gained value, after the company agreed to pay $597 million for Belgium-based Gryson to cut its reliance on the domestic market. Real Estate stocks, Mitsui Fudosan and Mitsubishi Estate traded higher, following report that Goldman Sachs Group would start investing in Japanese real estate for the first time since 2008. In Hong Kong, Bank of Communications, Hang Seng Bank and ICBC traded lower, amid speculation of a decline in banks’ lending in April and May. In South Korea, Ssangyong Engineering & Construction paced higher, on news that the company had won a $250 million deal to build a water supply network in Iraq.
Nikkei 225 index is trading 0.1% higher, at 8,570.9. Hang Seng index is 0.3% down, at 18,615.2, while the Kospi index is trading 0.2% higher, at 1,817.5.
UK Market Snapshot
UK markets rallied yesterday and rebounded from their biggest selloff in six months, shrugging off downbeat UK and Eurozone economic data, as investors deemed the shares to be cheap at their current valuation. Randgold Resources rallied 8.0% and emerged as the top gainer on the FTSE 100 index, as gold prices rose. Rio Tinto and Vedanta Resources rallied 1.7% and 5.0%, respectively, as base metal prices gained. BHP Billiton rose 2.2%, amid renewed hopes of a share buyback. Royal Dutch Shell climbed 2.2%, on news that it has extended the offer deadline for Cove Energy. ARM Holdings gained 2.7%, following an upgrade to “Buy” from “Hold” at S&P Equity Research. United Utilities rallied 2.7%, as it stated that it was on track on track to meet dividend growth targets.
FTSE 100 surged 1.6% to settle at 5,350.1, while FTSE 250 rose 0.9% to close at 10,472.5.
European Market Snapshot
Other European markets finished higher yesterday, as investors shrugged off weaker-than-expected economic data and inconclusive meeting between EU policymakers and instead focus on bargain hunting amid speculation that the recent heavy losses were not in line with the outlook for company earnings. Financial sector stocks, Credit Agricole, Deutsche Bank and BNP Paribas climbed between 0.8% and 1.6%, as risk appetite increased among investors. Among utilities, EON and RWE rose 2.1% and 2.2%, respectively, after Commerzbank upgraded the former to “Buy” from “Hold” and the latter to “Hold” from “Reduce”, while GDF Suez climbed 2.2%, after Credit Suisse raised its recommendation on the stock to “Neutral” from “Underperform”. Healthcare-product stock, Sonova Holdings, gained 3.3%, after HSBC Holdings advised a “Buy” on the stock.
FTSEurofirst 300 index added 1.1% to 982.6. German DAX Xetra 30 advanced 0.5% to 6,315.9. French CAC-40 closed 1.2% higher, at 3, 038.3.
Commodities
In Asia, crude oil for July delivery is trading 0.1% or 13 cents lower at $90.53 per barrel. Yesterday, crude oil for July delivery advanced 0.9% or 76 cents to $90.66 per barrel, as fuel energy demand prospects improved, after the US Labour Department reported a fall in the US initial jobless claims by 2,000 to a level of 370,000 on a seasonally adjusted basis during the last week, and following a rise in durable-goods orders in April. Crude oil also gained value, after indecisive nuclear talks between Iran and Western countries, raised supply concerns.
Gold for immediate delivery is trading 0.3% lower today, at $1552.24 per ounce. Gold for June delivery advanced 0.6% or $9.10 to $1,557.50 per ounce yesterday, as the IMF data revealed that central banks persisted in buying gold in April, with Turkey boosting its reserves by 29.7 metric tons and Ukraine, Mexico and Kazakhstan also raising their holdings.
Currencies
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5651, slightly up against the EUR at €1.2495 and marginally down against the JPY at ¥124.73.
The EUR is trading 0.1% lower against the USD at $1.2526 and marginally down against the JPY at ¥99.83, amid persistent fears that Greece might exit from the euro bloc and following ongoing debt and recession worries throughout the Eurozone.
Yesterday, the EUR closed lower against the USD, as major PMI indices on both European manufacturing and services data fell short of market expectations, and after German IFO business confidence fell for the first time in 7 months.
The NZD finished higher against most of its major peers, after Moody’s Investors Service reiterated the country’s “AAA” credit rating.
The AUD closed higher against the USD, as higher metal and oil prices increased the demand for the commodity linked currency.
The CHF ended lower against the EUR, amid speculation that the Swiss central bank might take action to weaken its currency.
The CAD finished lower against the USD, amid concerns that the European sovereign debt crisis would worsen and economic growth might falter in the US.

Thursday 24 May 2012

May 24, 2012 Financial Market Summary


DJIA edged down 0.1% to close at 12,496.2. NASDAQ advanced 0.4% to settle at 2,850.1. S&P 500 edged up 0.2% to end at 1,318.9.
Nikkei 225 index is trading 0.3% lower at 8,532.1.

FTSE 100 tumbled 2.5% to settle at 5,266.4
FTSEurofirst 300 index fell 2.2% to 972.0.

In Asia, crude oil for July delivery is trading 0.7% or 59 cents higher at $90.49 per barrel.
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5687, 0.1% lower against the EUR at €1.2475, 0.1% higher against the JPY at ¥124.75.

US Market Snapshot
US markets closed mostly higher yesterday, recouping earlier losses, as a better-than-expected reading on new home sales for April and optimism over probable concrete actions by European leaders to arrest the debt crisis boosted market sentiment. However, the gains were capped as investors remained on edge about Greece’s possible exit from the Eurozone. Homebuilder, Toll Brothers gained 2.7%, as it posted upbeat earnings for the second quarter, while retailer, Guess jumped 6.5%, as its quarterly profit beat market expectations. Ford added 2.2%, as it was raised to “Investment grade” by Moody’s Investors Service, enabling the company to reclaim its Blue Oval insignia and other assets it mortgaged in 2006 as collateral for a loan to fund its turnaround plan. However, Dell plunged 17.2% and led the technology sector lower, as it missed earnings forecasts for its first quarter.

DJIA declined marginally by 0.1% to close at 12,496.2. NASDAQ advanced 0.4% to settle at 2,850.1. S&P 500 edged up 0.2% to end at 1,318.9.

Asian Market Snapshot
Asian markets are trading mostly lower this morning, amid speculation that European leaders might fail to decide measures to resolve the Eurozone debt crisis, and following a survey that showed China’s manufacturing activity would contract for a seventh month in May. In Japan, energy sector stocks, Inpex and Japan Petroleum Exploration traded lower, tracking overnight losses in crude oil prices. Exporters, Canon, Nissan Motor and Mazda Motor paced lower, as the yen appreciated against the dollar yesterday. In Hong Kong, banking stocks, China Construction Bank, HSBC Holdings and The Bank of East Asia traded lower, as risk aversion increased among investors. In South Korea, exporters, Kia Motors, LG Electronics and SK Hynix paced higher, reversing their earlier session losses.

Nikkei 225 index is trading 0.3% lower at 8,532.1. Hang Seng index is trading 0.4% lower at 18,705.0, while the Kospi index is trading 0.3% higher, at 1,813.7.
UK Market Snapshot

UK markets dropped sharply yesterday, amid heightened concerns about Greece’s probable exit from the Euro-bloc, ahead of an EU summit, and after UK retail sales fell at their fastest monthly pace in more than two years in April. Vedanta Resources, the top laggard on the FTSE 100 index, slumped 9.1%, while other miners such as Xstrata, Glencore International, Rio Tinto, Polymetal International and Kazakhmys tumbled between 4.8% and 7.9%, as base metal prices lost ground on fears of slowing growth in China and Eurozone risks. Tullow Oil declined 5.0%, tracking a slump in oil prices. Retailers, Next, Tesco and Marks & Spencer declined between 1.5% and 1.9%, as weak UK retail sales data for April revealed a sharper-than-expected drop in clothing sales. Barclays declined 4.5%, amid speculation that it would restructure its operations or sell some of its branches in Italy.
FTSE 100 tumbled 2.5% to settle at 5,266.4, while FTSE 250 slumped 1.9% to 10,375.7.

European Market Snapshot
Other European markets closed sharply lower yesterday, led by losses in banking and energy sector stocks, amid mounting concerns that Greece might leave the euro bloc, and after Japan’s exports rose less-than- estimated in April on an yearly basis. Financial sector stocks, Deutsche Bank, Credit Agricole and Intesa Sanpaolo, lost between 2.1% and 6.3%, as risk appetite decreased among investors. ThyssenKrupp sank 4.3%, after Fitch Ratings trimmed its outlook on the stocks to “Negative” from “Stable”. Deutsche Boerse lost 3.9%, amid speculation that it might be removed from the Euro Stoxx 50 Index next week. Energy stock, Total, declined 1.9%, in line with a fall in crude oil prices.

FTSEurofirst 300 index fell 2.2% to 972.0. German DAX Xetra 30 lost 2.3% to 6,285.8. French CAC-40 closed 2.6% lower, at 3,003.3.

Commodities
In Asia, crude oil for July delivery is trading 0.7% or 59 cents higher at $90.49 per barrel. Yesterday, crude oil for July delivery fell 2.1%, or $1.95, to settle at $89.90 per barrel, as the dollar closed higher against the euro, decreasing the demand for alternative investments such as commodities. Crude oil also lost value, as supply concerns eased, on hopes of a deal between Iran and the International Atomic Energy Agency, and after US crude oil inventories increased by 883,000 barrels to 382.5 million barrels, a 22-year high, for the week ended 18 May.

Gold for immediate delivery is trading 0.2% higher today, at $1561.60 per ounce. Gold for June delivery sank 1.8% or $28.20 to $1,548.40 per ounce yesterday, as the dollar strengthened against the euro, decreasing the demand for the precious metal as a hedge against the inflation.
Currencies
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5687, 0.1% lower against the EUR at €1.2475, 0.1% higher against the JPY at ¥124.75.

The EUR is trading 0.1% higher against the USD at $1.2575. The currency is trading 0.2% higher against the JPY at ¥100.01. Earlier, the currency was trading lower, as German Chancellor, Angela Merkel, reiterated opposition to jointly issued common Euro bonds raising concerns that the debt crisis could worsen.
The NZD is trading higher against the USD, after New Zealand’s exports exceeded imports by NZ$355 million, from a revised NZ$186 million in March.

Yesterday, the EUR ended lower against the USD, amid speculation that a summit of European Union leaders would fail to issue new measures to prevent the spread of the European sovereign-debt crisis.
The JPY closed higher against most of its major peers, after the Bank of Japan left its asset-purchase fund unchanged at ¥40 trillion.

The AUD and CAD ended lower against the USD and the JPY, as lower commodity prices decreased the demand for the commodity linked currencies.
The GBP finished higher against the EUR, after minutes of the Bank of England’s May monetary-policy meeting showed that eight members voted to keep the central bank’s bond-buying programme on hold, while just one voted in favour of more QE.