Wednesday 30 May 2012

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.

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