Wednesday 30 May 2012

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.

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