DJIA
gained 1.0% to close at 12,580.7.NASDAQ surged 1.2% to settle at 2,871.0.
S&P 500 soared 1.1% to end at 1,332.4.
Nikkei
225 index is trading 1.0% lower at 8,571.9.
FTSE
100 added 0.6% to settle at 5,391.1.
FTSEurofirst
300 index added 0.7% to end at 991.0.
In
Asia, crude oil for July delivery is trading 0.4% or $0.38 lower at $90.38 per
barrel.
At
0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5613,
marginally lower against the EUR at €1.2527, 0.2% lower against the JPY at
¥124.09.
US Market
Snapshot
US
markets rallied sharply yesterday, as rising prospects that Greece would remain
in the euro and hopes that China would introduce fresh stimuli to boost its
economic growth outweighed a disappointing reading on US consumer confidence.
Chesapeake Energy advanced 3.4%, as the activist investor, Carl Icahn reported
a 7.6% stake in the company on Friday and called for change of at least four
directors. Coal producers, Consol Energy and Peabody Energy rallied 1.8% and
5.6%, respectively, as Goldman Sachs raised its recommendation for the sector
to “Attractive” from “Neutral”. PulteGroup and DR Horton advanced 2.0% and
2.5%, respectively, after as a report showed US home prices stabilized in the
year ended March. Caterpillar rose 2.9%, amid speculation that China was
preparing a new round of stimulus measures.
DJIA
gained 1.0% to close at 12,580.7.NASDAQ surged 1.2% to settle at 2,871.0.
S&P 500 soared 1.1% to end at 1,332.4.
Asian Market
Snapshot
Asian
markets are trading lower this morning, as China dampened expectations of a
massive economic stimulus and as rising concerns about the health of Spanish
banking sector and their potential to worsen Europe's debt crisis weighed on
market sentiment. In Japan, energy sector stocks, JX Holdings, Japan Petroleum
Exploration and Inpex, paced declines, as crude oil prices retreated.
Exporters, Sony, Toshiba and Sharp lost values, as the yen appreciated against
the dollar. In Hong Kong, Bank of Communications, Haitong Securities and China
Life Insurance traded lower, as risk appetite decreased among investors. In
South Korea, GS Retail lost value, after the country’s Fair Trade Commission
mulled to ban convenience store operators from opening multiple stores in a
500-meter radius.
Nikkei
225 index is trading 1.0% lower at 8,571.9. Hang Seng index is trading 2.2%
lower at 18,643.3 while the Kospi index is trading 0.9% lower, at 1,833.1.
UK Market Snapshot
UK
markets ended higher yesterday, led by gains in mining sector stocks, amid
speculation that China would increase stimulus to boost its economy. Investors
also responded positively to encouraging housing market data in the US. Miners
advanced, with BHP Billiton, Anglo American, Rio Tinto, Anglo American and
Kazakhmys climbing between 1.3% and 2.9%, amid reports of approval of some new
steel plants in China. Kazakhmys and Rio Tinto also rose following a “Buy”
recommendation from Societe Generale. Tullow Oil added 3.1%, following last
week’s drilling update in Kenya. BG Group gained 1.6%, after it agreed to sell
its entire 60.1% stake in Comgas. International Airlines Group rallied 4.1%, as
UBS reiterated its “Buy” rating on the stock, while InterContinental Hotels
rallied 2.3%, amid speculation that it might become a takeover target.
FTSE
100 added 0.6% to settle at 5,391.1, while FTSE 250 surged 1.4% to close at
10,657.9.
European Market
Snapshot
Other
European markets closed higher yesterday, as prospect for more stimulus
measures in China and signs of stabilization in the US housing market buoyed
market sentiment.. However, gains were limited as concerns grew that Spanish
banks would need more financial support to withstand Eurozone’s debt crisis.
Steelmaker, ArcelorMittal, climbed 4.1%, after HSBC raised its recommendation
on the stock to “Overweight” from “Neutral”. Volkswagen, Bayerische Motoren
Werke and Daimler, gained between 2.5% and 3.9%, on hopes that China’s efforts
to fuel its economic growth might boost exports for the carmakers.
Oilfield-services firm, CGGVeritas, rallied 5.7%, after UBS upgraded the stock
to “Buy” from “Neutral”. Valeo added 3.9%, after positive comments from a
broker.
FTSEurofirst
300 index added 0.7% to 991.0. German DAX Xetra 30 rose 1.2% to 6,396.8. French
CAC-40 closed 1.4% higher at 3,084.7.
Commodities
In
Asia, crude oil for July delivery is trading 0.4% or $0.38 lower at $90.38 per
barrel. Yesterday, crude oil for July delivery eased 0.1% or 10 cents to settle
at $90.76 per barrel, amid concerns about the European economic problems after
Egan-Jones Ratings downgraded Spain’s credit rating to junk status. However,
losses were limited amid concerns about supply disruptions as dispute between
western power and Iran over its nuclear program remained unresolved and as a
report showed that China's biggest banks had accelerated lending.
Gold
for immediate delivery is trading 0.4% lower today, at $1,547.36 per ounce.
Gold for August delivery fell 1.3% or $20.20 to settle at $1,551 per ounce
yesterday, as the dollar appreciated against the euro and as investors
continued to focus on Spain’s deteriorating financial situation after a credit
rating agency downgraded Spain’s credit rating to “B” from “BB-”.
Currencies
At
0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5613,
marginally lower against the EUR at €1.2527, 0.2% lower against the JPY at
¥124.09.
The
EUR is trading 0.1% lower against the USD at $1.2464. The EUR is trading 0.2%
lower against the JPY at ¥99.06.
The
EUR is trading lower against the USD and the JPY, amid speculation that the
European debt crisis would worsen, after Spain’s borrowing costs climbed. EUR
also traded lower before the release of a report on consumer confidence in the
euro area.
The
AUD is trading lower against most of its major peers, amid speculation that the
Reserve Bank of Australia would lower its borrowing costs, after a report
showed that retail sales in Australia unexpectedly declined in April.
The
NZD is trading lower against the USD and the JPY, after report showed that home
building approvals in New Zealand declined 7.2% in April from a revised 19.6%
gain in March.
Yesterday, the EUR finished
lower against most of its major peers, after Egan-Jones downgraded Spain's
credit rating to “B” from “BB-” and after reports showed that Spanish retail
sales declined in April. The GBP closed higher against the EUR, as investors
preferred the relative safety of the British currency, after Spain announced that
it might need to sell bonds for a banking rescue. The currency also appreciated
after an index of UK retail sales rose to its highest level in more than a year
in May. The CAD ended lower against the USD, as a drop in base metal and crude
oil prices decreased the demand for the commodity linked currency.
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