Monday, 21 May 2012

May 21, 2012 Financial Market Summary


DJIA shed 0.6% to close at 12,369.4. NASDAQ tumbled 1.2% to settle at 2,778.8. S&P 500 slipped 0.7% to end at 1,295.2.
Nikkei 225 index is trading 0.3% higher at 8,633.9.

FTSE 100 shed 1.3% to settle at 5,267.6.
FTSEurofirst 300 index declined 1.1% to 970.2.

In Asia, crude oil for June delivery is trading 0.4% or $0.36 higher at $ 91.84 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5829, marginally lower against the EUR at €1.2368, 0.2% higher against the JPY at ¥125.27.

US Market Snapshot
US markets ended lower on Friday, amid continued concerns about the European debt crisis and as Facebook’s debut on Wall Street failed to live up to investors’ expectations. Design software maker, Autodesk tumbled 12.9%, as the firm forecasted lower earnings for the second quarter. NASDAQ OMX group dropped 4.4%, following a technical snag in the debut of Facebook IPO. Hewlett-Packard, the top laggard on the DJIA index, declined 2.7%, as it mulled to cut up to 30,000 jobs amid dwindling demand for personal computers. JPMorgan lost 1.3%, following a report in The Wall Street Journal that the bank’s trading losses would total as much as $5 billion, surpassing initial estimate of $2 billion. Internet firms, Groupon, Pandora Media and Zynga dropped between 6.7% and 13.4%.

DJIA shed 0.6% to 12,369.4. NASDAQ tumbled 1.2% to 2,778.8. S&P 500 slipped 0.7% to 1,295.2.

Asian Market Snapshot
Asian markets are trading mostly higher this morning, on hopes that the Chinese government might announce further quantitative easing to stimulate the country’s economic growth. In Japan, Fanuc gained value, following report that the company has planned to boost its production of numerical-control equipment. Inpex and Japan Petroleum Exploration paced higher, in line with a rise in crude oil prices. In Hong Kong, YGM traded lower, after the company reported lower-than-expected sales growth in China in past two months. In South Korea, exporters, Samsung Electronics, Kia Motors and LG displays paced gains, reversing their earlier session losses, as worries eased after world leaders pledged to keep Greece in the eurozone.

Nikkei 225 index is trading 0.3% higher at 8,633.9. Hang Seng index is trading 0.4% lower at 18,871.8, while the Kospi index is trading 0.7% higher, at 1,794.6.
UK Market Snapshot

UK markets extended their losses for the fifth straight day, closing lower on Friday, as worsening debt crisis in Europe and signs of a slowdown in China, weighed on market sentiment. Broadcaster, ITV dropped 3.7%, as HSBC assigned an “Underweight” rating to the stock.  Lloyds Banking Group, the top decliner on the FTSE 100 index, dropped 6.2%, while Barclays and Royal Bank of Scotland retreated 3.2% and 5.1%, respectively, amid concerns over their exposure to Spain and the rest of eurozone. Miners, BHP Billiton, Anglo American, ENRC, Rio Tinto, Vedanta Resources and Xstrata dropped between 1.2% and 4.3%, after China’s State Information Centre forecasted a slowdown in the country’s economy for the second quarter. Man Group declined 4.1%, after Standard & Poor's downgraded the stock to “Negative” from “Stable”, while Burberry Group slipped 4.2%, amid concerns over its Chinese exposure.
FTSE 100 shed 1.3% to settle at 5,267.6, while FTSE 250 tumbled 1.5% to close at 10,431.9.

European Market Snapshot
Other European markets slid on Friday, amid concerns that China’s economic growth might falter and Greece might leave the euro bloc, escalating the region’s debt crisis. BMW, Volkswagen and Porsche dropped between 2.0% and 2.4%, after China’s car dealerships reported a rise in inventory levels in the country, while Volvo lost 4.6%. Exporters, LVMH and Pernod-Ricard fell 2.0% and 3.9%, respectively, amid concern that a slowdown in China’s economy would affect demand. Industrial sector stocks, EADS, Man Se and Lafarge dropped between 0.7% and 3.3%, after their US peer, Caterpillar reported slowing growth in sales. However, losses were limited by gains in banking sector stocks amid speculation of a European ban on short selling. BNP Paribas and Societe Generale gained 2.9% and 2.3%, respectively.

FTSEurofirst 300 index declined 1.1% to 970.2. German DAX Xetra 30 eased 0.6% to 6,271.2. French CAC-40 closed 0.1% lower at 3,008.0.
Commodities
In Asia, crude oil for June delivery is trading 0.4% or $0.36 higher at $ 91.84 per barrel. On Friday, crude oil for June delivery slid 1.2% or $1.08 to settle at $91.48 per barrel, as worsening problems in Greece and Spain and concerns about a slowdown in China’s economic growth, decreased demand prospects for crude oil. Crude oil also lost value, as investors were cautious ahead of the G8 summit and speculation that a US pipeline reversal might start this weekend.
Gold for immediate delivery is trading 0.2% higher today, at $1,596.66 per ounce. Gold for June delivery rose 1.1% or $17 to $1,591.90 per ounce on Friday, as the US dollar dropped against the major currencies amid renewed hopes for further easing from the US Federal Reserve.
Currencies
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5829, marginally lower against the EUR at €1.2368, 0.2% higher against the JPY at ¥125.27.

The EUR is trading 0.1% higher against the USD at $1.2795.

The EUR is trading 0.3% higher against the JPY at ¥101.26.

The EUR is trading higher against most of its major peers, after the leaders of the G8 nations pledged to keep Greece in the eurozone. Earlier, the EUR was trading lower, amid speculation that a data due to be released would show consumer confidence in eurozone dropped to a four-month low in May.

The JPY is trading lower against most of its major peers, ahead of BOJ officials two-day meeting, amid speculation that the central bank would add to stimulus measures this week to bolster the country’s economic growth.

On Friday, the EUR finished higher against the USD, on hopes that G-8 officials, at the weekend summit, might offer support to the European Union to prevent the exit of Greece from the euro bloc and spread of eurozone debt crisis.
The JPY closed higher against the USD, after Japan’s government raised its economic assessment for the first time in nine months.

No comments:

Post a Comment