Wednesday 23 May 2012

May 23, 2012 Financial Market Summary


DJIA fell marginally to 12,502.8. NASDAQ edged down 0.3% to settle at 2,839.1. S&P 500 rose 0.1% to 1,316.6.
Nikkei 225 index is trading 1.2% lower at 8,623.5.

FTSE 100 surged 1.9% to settle at 5,403.3.
FTSEurofirst 300 index rose 1.9% to 993.7.

In Asia, crude oil for July delivery is trading 1.2% or $1.12 lower at $91.45 per barrel.
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5763, 0.1% lower against the EUR at €1.2436, 0.5% lower against the JPY at ¥125.41.

US Market Snapshot
US markets closed mostly lower yesterday, as Greece’s possible exist from the Euro-bloc and a downgrade of Japan by Fitch led investors to shrug off positive US housing data. Among coal producers, Peabody Energy, Alpha Natural Resources, Arch Coal and Patriot Coal plunged between 3.9% and 35.1%, amid speculation that Patriot Coal had hired bankruptcy advisors and as it stated that it was still working with lenders for a revolving credit line of $625 million. Facebook declined 8.9%, amid report that Morgan Stanley reduced its revenue forecast for the social network. Apparel retailer Express slumped 27.4%, as its first quarter results trailed market expectations and after it reduced its full-year earnings forecast. However, Urban Outfitters, the top gainer on the S&P 500 index, rallied 7.4%, as its first-quarter profit surpassed market expectations.

DJIA fell marginally to 12,502.8. NASDAQ edged down 0.3% to settle at 2,839.1. S&P 500 rose 0.1% to 1,316.6.
Asian Market Snapshot
Asian markets are trading lower this morning, amid renewed concerns that Greece might leave the euro bloc, and after Japan’s debt-rating was downgraded to “A+” rating. In Japan, exporters, Nintendo, Hitachi and Fujifilm Holdings traded lower, after Japan’s exports rose less-than-estimated in April on yearly basis. Financial sector stocks, Aozora Bank, Daiwa Securities and Nomura Holdings paced lower, after Fitch Ratings downgraded Japan’s credit rating. In Hong Kong, refiners, Cnooc and Petrochina paced losses, in line with a fall in crude oil prices. In South Korea, technology stocks, Samsung Electronics and LG Display traded lower, reversing their earlier sessions’ gains.

Nikkei 225 index is trading 1.2% lower at 8,623.5. Hang Seng index is trading 1.7% lower at 18,718.4, while the Kospi index is trading 1.3% lower, at 1,804.7.
UK Market Snapshot

UK markets rose sharply yesterday, following positive news on China’s infrastructure spending and as UK’s annual inflation rate fell to the lowest level for more than two years in April. Cruise ship operator, Carnival rallied 4.3%, as bunker fuel price dipped sharply, fuelling optimism that the firm would raise its earnings guidance. Miners, Xstrata, Rio Tinto, Kazakhmys and Antofagasta rallied between 3.2% and 4.5% amid hopes that a boost in Chinese infrastructure investment would spur demand for industrial metals. Xstrata also gained as it predicted a recovery in Chinese demand for copper in the second half of the year. Fresnillo gained 5.2%, as silver prices rallied. Oil services company, Petrofac jumped 4.1%, as it bagged a $220 million rig refit contract. Wolseley jumped 4.6%, as Credit Suisse reiterated their “Outperform” rating on the stock. Vodafone rallied 4.2%, as its full year revenue growth surpassed market expectation.
FTSE 100 surged 1.9% to settle at 5,403.3, while FTSE 250 soared 1.4% to close at 10,579.5.

European Market Snapshot
Other European markets rallied yesterday, ahead of the European Union summit and on hopes that China and Europe would add measures to bolster global economic growth. Additionally, a rise in US existing home sales data in April also buoyed market sentiment. Italian financial sector stock, Banca Carige, soared 12.7 %, after the company announced that it would create a subsidiary to manage 353 branches outside the Liguria region. Carmakers, Renault and Fiat surged 6.3% and 6.4%, respectively, amid optimism that global auto demand would recover. Accor rallied 5.8%, after the company announced that it would sell its budget Motel 6 chain for $1.9 billion. Cement makers, Lafarge, HeidelbergCement and Holcim, climbed between 1.6% and 5.3%, on news that the Chinese government would accelerate its infrastructure projects.

FTSEurofirst 300 index rose 1.9% to 993.7. German DAX Xetra 30 climbed 1.7% to 6,435.6. French CAC-40 rose 1.9% to 3,084.1.
Commodities

In Asia, crude oil for July delivery is trading 1.2% or $1.12 lower at $91.45 per barrel.  Yesterday, crude oil for June delivery expired 1.0% or 91 cents lower to $91.66 per barrel, amid a decrease in geopolitical tensions, after Iran agreed to let in United Nations’ nuclear inspectors. Crude oil also lost value, after the Organization for Economic Cooperation and Development (OECD) trimmed economic growth forecasts for the Eurozone.
Gold for immediate delivery is trading 0.5% lower today, at $ 1559.55 per ounce. Gold for June delivery declined 0.8% or $12.10 at $1,576.60 per ounce yesterday, as the dollar strengthened against the euro, after OECD lowered its forecast for growth in the Eurozone and also as Fitch Ratings downgraded Japan to “A+” and kept its negative outlook on the country’s credit rating.
Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5763, 0.1% lower against the EUR at €1.2436, 0.5% lower against the JPY at ¥125.41.
The EUR is trading 0.1% higher against the USD at $1.2675. The currency is trading 0.5% lower against the JPY at ¥100.84.
The EUR and CAD are trading higher against the USD, ahead of European Union leaders meeting in Brussels to decide measures to stem the region’s debt crisis, and on optimism that EU officials would take all the possible steps to keep Greece in the euro bloc.
The JPY is trading higher against most of its major peers, after the Bank of Japan refrained from additional monetary easing.
Yesterday, the GBP ended lower against the USD, following report that showed UK inflation slowed more-than-forecasted in April, and after the IMF stated that further quantitative easing may be warranted to bolster the UK economy.
The EUR closed lower against the USD, amid mounting fear that Greece might leave the monetary union as European leaders prepare to meet in Brussels. The currency also lost value, as OECD cut economic growth forecasts in the Eurozone.
The JPY closed lower against most of its major peers, amid speculation that the Bank of Japan might expand its monetary policy to boost growth, and after Fitch Ratings trimmed Japan’s credit rating to “A+” with a negative outlook.
The USD closed higher against the most of its major peers, amid fears that Greek might exit from the Eurozone, and after JP Morgan highlighted economic slowdown in China and the US.

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