Tuesday, 22 May 2012

May 22, 2012 Financial Market Summary


DJIA gained 1.1% to close at 12,504.5. NASDAQ surged 2.5% to settle at 2,847.2. S&P 500 soared 1.6% to end at 1,316.0.
Nikkei 225 index is trading 1.0% higher at 8,718.6.

FTSE 100 gained 0.7% to settle at 5,304.5.

FTSEurofirst 300 index added 0.5% to 975.0.

In Asia, crude oil for June delivery is trading 0.1% or $0.09 higher at $92.66 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5816, marginally higher against the EUR at €1.2360, 0.1% lower against the JPY at ¥125.54.

US Market Snapshot
US markets rallied yesterday, with the S&P 500 index snapping its six days losing streak, after the Chinese government called for additional measures to bolster growth and as German and French leaders pledged to take all necessary actions to keep Greece in the Euro-bloc. Electrical-equipment supplier, Cooper Industries, the top gainer on the S&P 500 index, surged 25.1%, as Eaton agreed to acquire the firm. Boeing added 3.8%, as a broker upgraded its rating on the stock to “Buy” from “Hold”. Yahoo advanced 1.0%, after Alibaba Group agreed to repurchase about 20% stake in itself from the firm. Radian Group jumped 18.3%, after investor Clinton Group asked the company to provide enhanced disclosure to public shareholders or to sell the company.

DJIA gained 1.1% to close at 12,504.5. NASDAQ surged 2.5% to settle at 2,847.2. S&P 500 soared 1.6% to end at 1,316.0.

Asian Market Snapshot
Asian markets are trading higher this morning, as China vowed to speed up its infrastructure spending to accelerate economic growth. In Japan, semiconductor stock, Renesas Electronics gained value on news that it has planned to raise fresh capital. Tokyo Electric Power gained value after it stated that the government might own about 76% stake in the firm. Energy stocks, Inpex, Japan Petroleum Exploration and JX Holdings paced higher, tracking a rebound in crude oil prices. In Hong Kong, Agile Property Holdings and China Resources Land traded higher, on hopes that infrastructure spending would increase in the country. In South Korea, KB financial group and Shinhan Financial Group traded higher, tracking overnight gains in their US and European peers.
Nikkei 225 index is trading 1.0% higher at 8,718.6. Hang Seng index is trading 1.0% higher at 19,105.7, while the Kospi index is trading 1.1% higher, at 1,818.5.

UK Market Snapshot
UK markets closed higher yesterday, with the FTSE 100 index ending its five-days losing streak, following supportive statements from the G-8 leaders about Greece staying in the eurozone. Vedanta Resources jumped 5.2%, to lead the gainers on the FTSE 100 index, while, Rio Tinto, Glencore International, Xstrata and Polymetal International gained between 1.3% and 3.6%, following Chinese Premier, Wen Jiabao’s assurance to support the country’s growth policies. BG Group and Tullow Oil gained 1.2% and 2.8%, respectively, as crude oil prices rebounded after six days of declines. Man Group climbed 4.7%, as it agreed to acquire research and investment specialist, Financial Risk Management Holdings. Barclays added 2.2%, as it expressed its intention to dispose its entire $6.1 billion stake in BlackRock. WPP added 1.1%, as it revealed that it had acquired a stake in Myanmar's Today Advertising.

FTSE 100 gained 0.7% to settle at 5,304.5, while FTSE 250 advanced marginally to close at 10,435.5.

European Market Snapshot
Other European markets closed in the positive territory yesterday, as China’s pledge to stimulate the country’s economy to bolster growth outweighed concern that Greece would fail to implement austerity measures. Market sentiment was also buoyed as the G8 nations reiterated their support for Greece. Renault climbed 4.7%, after UBS added the stock to its European “key calls” list, while Fiat soared 8.6%, after a broker upgraded the stock to “Outperform” from “Market perform”. ThyssenKrupp added 3.0%, after a broker upgraded the stock to “Neutral” from “Sell”. Merck KGaA gained 3.0%, after UBS raised its recommendation on the stock to “Buy” from “Neutral”. Bayer rose 2.5%, after Fitch Ratings raised its outlook on the company to “Positive” citing improved operational and financial positioning.
FTSEurofirst 300 index added 0.5% to 975.0. German DAX Xetra 30 rose 1.0% to 6,331.0. French CAC-40 closed 0.6% higher at 3,027.2.

Commodities
In Asia, crude oil for June delivery is trading 0.1% or $0.09 higher at $92.66 per barrel. Yesterday, crude oil for June delivery rose 1.2% or $1.09 to $92.57 per barrel, on hopes of higher economic stimulus in China and as the G-8 nations reaffirmed their support for Greece to stay in the euro area and to maximize economic expansion. Crude oil also rose following positive comments from Goldman Sachs and ahead of the meeting between Iran and other nations to discuss about Iran’s nuclear program and imminent international sanctions.
Gold for immediate delivery is trading 0.2% lower today, at $1,591.30 per ounce. Gold for June delivery eased 0.2% or $3.20 to $1,588.70 per ounce yesterday, as the dollar rose against the euro amid lingering concerns about the Greek debt crisis as the G-8 leaders failed to announce steps to prop up growth and help ease the strain in Europe's financial system.
Currencies
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5816, marginally higher against the EUR at €1.2360, 0.1% lower against the JPY at ¥125.54.

The EUR is trading 0.2% lower against the USD at $1.2792.
The EUR is trading 0.2% lower against the JPY at ¥101.54.

The EUR is trading lower against most of its major peers, amid speculation that a report due to be released might show that consumer sentiment in the eurozone slid to a four-month low.
The NZD is trading higher against the USD, as a rise in Asian equity markets increased the demand for high yielding assets.

Yesterday, the JPY closed lower against most of its major peers, amid speculation that the Bank of Japan would add to stimulus measures this week to support the country’s economic growth.
The EUR closed higher against the USD, after German Finance Minister, Wolfgang, stated that Germany and France would do “everything necessary” to keep Greece in the eurozone. The currency also gained value after the Chinese Premiere pledged to bolster the country’s growth.

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