June 29, 2012 Financial Market Summary

DJIA edged down 0.2% to end at 12,602.3. NASDAQ fell 0.9% to settle at 2,849.5. S&P 500 ticked down 0.2% to close at 1,329.0.

Nikkei 225 index is trading 0.1% lower at 8,862.9.

FTSE 100 fell 0.6% to settle at 5,493.1.

FTSEurofirst 300 index declined 0.5% to 995.1.

In Asia, crude oil for August delivery is trading 1.9% or $1.45 higher at $79.14 per barrel.

At 0400 BST today, the GBP is trading 0.6% higher against the USD at $1.5604, 0.8% lower against the EUR at €1.2377, and 0.6% higher against the JPY at ¥123.86.

US Market Snapshot

US markets closed modestly lower yesterday, paring earlier losses, amid speculation that leaders at the European summit would come up with a concrete solution to the region’s debt crisis. Earlier, markets were under pressure, after data showed jobless claims last week were near their highest level in a year and the economic growth slowed as expected in the first quarter. JPMorgan Chase, the top laggard on the DJIA index, dropped 2.5%, after The New York Times reported that its trading losses from credit derivatives could reach $9 billion, while Bank of America, Morgan Stanley and Citigroup dropped between 0.3% and 2.6%.Family Dollar Stores slipped 2.8%, as its third-quarter earnings missed market expectations. Health insurance stocks, Cigna, Aetna and Wellpoint lost between 2.7% and 5.2%, after the US Supreme Court upheld the Obama administration's healthcare overhaul law.

DJIA edged down 0.2% to end at 12,602.3. NASDAQ fell 0.9% to settle at 2,849.5. S&P 500 ticked down 0.2% to close at 1,329.0.

Asian Market Snapshot

Asian markets are trading mixed this morning, as reports that European leaders had mulled to establish a single financial supervisory mechanism for the eurozone, offset downbeat economic data from Japan, the US and eurozone. In Japan, TDK Corporation and Nidec Corp dropped after their US peer, Hutchinson Technology reported disappointing third quarter results. In Hong Kong, energy sector stock, China Gas Holdings gained value, after the company posted a sharp rise in its annual earnings. In South Korea, gains in Kospi index were restricted as Kia Motors and Hyundai Motor paced lower, amid continued concerns about a labour strike. However, Tsingtao Brewery lost value after its chairman quit for health reasons.

Nikkei 225 index is trading 0.1% lower at 8,862.9. Hang Seng index is trading 2.1% higher at 19,428.7, while the Kospi index is trading 0.6% higher, at 1,830.4.

UK Market Snapshot

UK markets closed lower yesterday, weighed down by a sharp decline in banking sector stocks, after Barclays received a backlash from British lawmakers over its manipulation of LIBOR and as investors continued to fret over the outcome of the EU summit. Barclays plunged 15.5%, on concerns of further litigations, after the company was fined $452.0 million on Wednesday over its manipulation of interbank lending rates. HSBC Holdings and Royal Bank of Scotland dropped 2.6% and 11.5%, respectively, amid reports that the banks were being probed for attempting to manipulate LIBOR. Reckitt Benckiser fell 2.3%, as Credit Suisse downgraded its rating on the stock to “Neutral” from “Outperform”. Polymetal International slipped 3.0%, as UBS cut its rating on the stock from “Buy” to “Neutral”, citing weak silver prices. GlaxoSmithKline fell 1.6%, after a broker recommended its peer AstraZeneca.

FTSE 100 fell 0.6% to settle at 5,493.1, while FTSE 250 also slid 0.6% to close at 10,688.3.

European Market Snapshot

Other European markets slid yesterday, as investors remained cautious ahead of the EU summit. Markets retreated following a sharp rise in Spanish borrowing costs at a debt auction and higher-than-expected increase in Germany’s unemployment rate. UBS lost 2.8%, following report that the company was being probed for attempting to manipulate LIBOR, while Commerzbank slumped 5.7%, after the company issued new shares worth about €176.5 million. Among other financials, Banco Popular, Banca Monte dei Paschi di Siena and Banca Popolare di Sondrio Scarl, fell between 1.6% and 3.5%, following a rise in Italian and Spanish borrowings costs.

FTSEurofirst 300 index declined 0.5% to 995.1. German DAX Xetra 30 fell 1.3% to 6,149.9. French CAC-40 closed 0.4% lower at 3,051.7.

Commodities

In Asia, crude oil for August delivery is trading 1.9% or $1.45 higher at $79.14 per barrel. Yesterday, crude oil for August delivery slid 3.1% or $2.52 to $77.69 per barrel, as various downbeat global economic reports and a sharp rise in Spanish bond yields at a debt auction weighed on oil prices. Crude oil also lost value on stronger dollar and amid concerns about the outcome of the EU summit.

Gold for immediate delivery is trading 0.7% higher today, at $1,564.55 per ounce. Gold for August delivery fell 1.8% or $28 to end at $1,550.40 per ounce yesterday, as disappointing US economic data and continued scepticism about the two-day EU summit increased the demand for the greenback as a safe haven, dragging gold futures lower.

Currencies

At 0400 BST today, the GBP is trading 0.6% higher against the USD at $1.5604, 0.8% lower against the EUR at €1.2377, and 0.6% higher against the JPY at ¥123.86.

The EUR is trading 1.3% higher against the USD at $1.2598. The EUR is trading 1.3% higher against the JPY at ¥99.94. The EUR is trading higher against most of its major peers, after European policymakers dropped the condition that emergency loans to Spanish banks give their governments preferred creditor status and planned to establish a single financial supervisory mechanism for the eurozone in EU summit.

The JPY is trading lower against the USD, after economic reports showed consumer prices in Japan dropped in May and manufacturing activity shrank in June.

The AUD and NZD are trading higher against the USD, after European leaders announced measures to support funding for Spain, boosting demand for higher-yielding assets. The AUD also rose amid speculation the Reserve Bank of Australia would refrain from lowering its interest rate at a policy meeting on 3 July.

Yesterday, the EUR and the AUD finished lower against the USD, amid speculation that EU policymakers would fail to agree on a strategy to prevent the spread of the sovereign-debt crisis to the bigger economies and Germany unemployment climbed in June for the fourth month this year. However, losses were restricted after the European Union agreed to spend €120 billion to stimulate economic growth and create jobs in the region. The GBP closed lower against the USD and the EUR, after reports showed UK house prices fell in June and the gross domestic product shrank in the first quarter.

June 28, 2012 Financial Market Summary

DJIA gained 0.7% to end at 12,627.0. NASDAQ rose 0.7% to settle at 2,875.3. S&P 500 added 0.9% to close at 1,331.9.

Nikkei 225 index is trading 0.9% higher at 8,810.2.

FTSE 100 surged 1.4% to settle at 5,523.9.

FTSEurofirst 300 index rose 1.4% to 1,000.1.

In Asia, crude oil for August delivery is trading 0.5% or $0.41 higher at $80.62 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5586, 0.1% lower against the EUR at €1.2478, and 0.2% lower against the JPY at ¥123.76.

US Market Snapshot

US markets closed higher yesterday, as better-than-expected pending home sales and durable goods orders data buoyed market sentiment, ahead of a key two-day European Union summit meeting. Goldman Sachs and JPMorgan Chase rallied 2.5% and 3.0%, respectively, on news that News Corp had appointed them as advisers on its plans to split into two separate companies. Exxon Mobil added 1.0%, tracking a rise in crude oil prices. Drug-maker, Bristol-Myers Squibb added 1.7%, as it doubled the size of its share buyback programme. Home-builder, Lennar climbed 4.8%, as its second-quarter profit soared from a year earlier, while seed company, Monsanto gained 3.9%, as it posted higher-than-expected third-quarter earnings. Arena Pharmaceuticals surged 28.7%, as it gained FDA approval for its anti-obesity drug Locaserin.

DJIA gained 0.7% to end at 12,627.0. NASDAQ rose 0.7% to settle at 2,875.3. S&P 500 added 0.9% to close at 1,331.9.

Asian Market Snapshot

Asian markets are trading mostly higher this morning, as better-than-expected economic data from Japan and the US overshadowed uncertainty about the outcome of the EU summit due to start later today. In Japan, drug maker, Eisai gained value, after its partner, Arena Pharmaceuticals, won US approval for a weight-loss drug. Retailers, Daiei and Shimamura traded higher, after Japan’s retail sales advanced 3.6% from a year earlier in May. In Hong Kong, retailer, Luk Fook Holdings International gained value, after the company reported a sharp rise in its annual earnings. In South Korea, Hanjin Shipping Holdings and CJ Korea Express advanced tracking higher freight rates.

Nikkei 225 index is trading 0.9% higher at 8,810.2. Hang Seng index is trading 0.1% higher at 19,201.2, while the Kospi index is trading flat at 1,817.0.

UK Market Snapshot

UK markets rebounded yesterday, with the FTSE 100 index snapping a four-session losing streak, amid speculation that China could introduce “more proactive” policies and following upbeat domestic retail sales data. Stocks also extended gains, as the EU accepted Cypriot and Spanish bailout requests and following robust US economic data. Royal Dutch Shell, BP and BG Group rallied between 1.4% and 3.8%, as crude oil prices rose. Lloyds Banking Group gained 3.5%, after the Financial Times reported the company might sell 630 branches to Co-Operative Group, while Standard Chartered rallied 3.1%, after it reiterated its double digit income growth forecast for the full year. US-exposed firms, Wolseley and CRH jumped 3.7% and 4.2%, respectively, following better-than-expected US housing data.

FTSE 100 surged 1.4% to settle at 5,523.9, while FTSE 250 gained 0.8% to close at 10,752.0.

European Market Snapshot

Other European markets closed higher yesterday, as upbeat US economic data and mounting hopes that China would introduce additional economic stimulus to boost the nation’s economy, cheered investors. Among financial sector stocks, UniCredit rose 4.7% as concerns about the Italian banking sector eased, while Bankia gained 6.9%, after the European Commission temporarily approved assistance from the Spanish state to BFA group and its subsidiary Bankia. Portugal Telecom climbed 3.1%, after the company announced a €200 million share buyback plan for the fiscal years 2012 to 2014. Chemicals industry stock, K+S rallied 5.4%, after Bank of America upgraded its ratings on the stock. Utility stock, E.ON climbed 3.3%, after HSBC upgraded the stock to “Overweight” from “Neutral”.

FTSEurofirst 300 index rose 1.4% to 1,000.1. German DAX Xetra 30 gained 1.5% to 6,229.0. French CAC-40 closed 1.7% higher at 3,063.1.

Commodities

In Asia, crude oil for August delivery is trading 0.5% or $0.41 higher at $80.62 per barrel. Yesterday, crude oil for August delivery advanced 1.1% or 85 cents to $80.21 per barrel, after the Energy Information Administration report showed a 100,000 barrels decline in the US crude oil inventories for the week ended 22 June. Additionally, upbeat US economic reports countered fading hopes that the upcoming European Union summit meeting would make progress in resolving the euro area debt crisis. 

Gold for immediate delivery is trading 0.1% higher today, at $1,575.68 per ounce. Gold for August delivery added 0.2% or $3.50, to settle at $1,578.40 per ounce yesterday. The metal lacked clear direction during the session, as investors awaited the outcome of a key European Union summit due later this week.

Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5586, 0.1% lower against the EUR at €1.2478, and 0.2% lower against the JPY at ¥123.76.

The EUR is trading 0.2% higher against the USD at $1.2491. The EUR is trading 0.2% lower against the JPY at ¥99.19, ahead of an Italian debt auction and an EU summit later today. The currency was also trading lower amid speculation that data due to be released might show economic confidence in the eurozone deteriorated in June, the lowest since October 2009.

The USD is trading lower against most of its major counterparts as a rise in equity markets supported demand for high-yielding assets.

The AUD is trading higher, amid mounting optimism that the Reserve Bank of Australia would keep its key interest rates unchanged at its policy meeting next week.

Yesterday, the EUR finished lower against the USD and the JPY, after German Chancellor Angela Merkel’s statements dimmed expectations that European policymakers would resolve the region’s debt crisis. The currency also lost value, following a rise in Italian borrowing costs at a debt auction. The USD closed higher against most other currencies following encouraging domestic housing and durable goods orders data. The AUD ended higher against the USD, after the Bureau of Resources and Energy Economics announced that gold exports from Australia would increase on higher demand from global central banks. The GBP closed lower against most of its major peers, amid mounting speculation of further monetary easing by the Bank of England, after mortgage approvals in the country fell to their lowest level in more than a year.

June 27, 2012 Financial Market Summary

DJIA edged up 0.3% to end at 12,534.7. NASDAQ rose 0.6% to settle at 2,854.1. S&P 500 added 0.5% to close at 1,320.0.

Nikkei 225 index is trading flat at 8,664.2.

FTSE 100 edged down 0.1% to settle at 5,447.0.

FTSEurofirst 300 index closed marginally higher at 986.6.

In Asia, crude oil for August delivery is trading 0.2% or $0.12 higher at $79.48 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5637, 0.1% lower against the EUR at €1.2507, and marginally down against the JPY at ¥124.23.

US Market Snapshot

US markets ended with modest gains yesterday, as a rise in home prices for the first time in seven months in April pointed to a turnaround in the housing market, overshadowing a fall in consumer confidence for a fourth consecutive month in June. However, fears over the outcome of a key European summit continued to weigh on market sentiment. JPMorgan Chase rose 1.1%, after Goldman Sachs upgraded the stock to “Buy” on its “Americas conviction list” of highly recommended stocks. News Corp gained 8.3%, as it mulled to split into two publicly held companies. Lennar and PulteGroup gained 3.1% and 5.3%, following positive housing market data. Chevron rose 1.9%, tracking a rise in crude oil prices. Apollo Group rallied 10.3%, after its quarterly results came ahead of market expectations.

DJIA edged up 0.3% to end at 12,534.7. NASDAQ rose 0.6% to settle at 2,854.1. S&P 500 added 0.5% to close at 1,320.0.

Asian Market Snapshot

Asian markets are trading mixed this morning, as caution ahead of a key European summit on Thursday and a sharp rise in Italian and Spanish bond yields at a debt auction offset some improved US economic data and optimism that the Chinese government would ease monetary policy and increase fiscal spending to boost economic growth. In Japan, markets swung between gains and losses. Keihin Corp lost value, after Deutsche Bank downgraded the stock to “Hold”, while Oracle traded higher after the company forecasted a rise in its fiscal year earnings. In Hong Kong, Chow Tai Fook Jewellery Group gained value, after the company reported a sharp rise in its full-year earnings. In South Korea, Hyundai Motor and Kia Motors dropped sharply amid report they might possibly face a labour strike.

Nikkei 225 index is trading flat at 8,664.2. Hang Seng index is trading 1.2% higher at 19,202.2, while the Kospi index is trading 0.2% lower, at 1,814.6.

UK Market Snapshot

UK markets closed lower yesterday, after borrowing costs for the Spanish and Italian governments rose at short-term debt auctions and as US-consumer confidence declined for a fourth month in June. Royal Bank of Scotland, the top laggard on the FTSE 100 index, dropped 3.8%, while Barclays, Lloyds Banking Group and Standard Chartered slipped between 1.0% and 1.5%, following a fresh round of bank downgrades in Spain by Moody’s Investors Service. RBS also declined as technical snags in the past few days prevented customers of the bank from accessing their money. Resolution hit a record low, slipping 1.3%, after Investec issued a “Sell” note on the firm, while a downgrade by the same broker to “Hold” from “Buy” sent shares of Petrofac 0.8% lower. Serco Group dropped 1.9%, after it forecasted a small decline in organic revenue in the first half.

FTSE 100 slipped 0.1% to 5,447.0, while FTSE 250 fell 0.1% to close at 10,665.4.

European Market Snapshot

Other European markets closed mixed yesterday, as a sharp rise in Spanish borrowing costs at a debt auction and downbeat economic data in the US offset a surprise improvement in German confidence data. BMW lost 2.3%, after Citigroup downgraded the stock to “Neutral” from “Buy”, while Daimler and Fiat fell 1.0% and 2.9%, respectively. Bankia, Banco Popular Espanol and Banco de Sabadell plunged between 5.3% and 8.7%, after Moody's, late Monday, cut the credit ratings of 28 Spanish banks. Infineon tumbled 11.6%, after it lowered its third-quarter sales forecast. However, E.ON gained 3.3%, after Bank of America Merrill Lynch upgraded the stock to “Buy” from “Neutral”, while RWE advanced 2.9%, after the same broker upgraded the stock to “Neutral” from “Underperform”.

FTSEurofirst 300 index closed marginally higher to end at 986.6. German DAX Xetra 30 added 0.1% to 6,136.7. French CAC-40 closed 0.3% lower at 3,012.7.

Commodities

In Asia, crude oil for August delivery is trading 0.2% or $0.12 higher at $79.48 per barrel. Yesterday, crude oil for August delivery advanced 0.2% or 15 cents to settle at $79.36 per barrel, as prospect of a decline in US crude oil inventories and reports that showed house prices in the US fell less-than-expected, overshadowed concern about a weakening economic outlook. Additionally, EU governments on Monday formally approved an embargo on Iranian oil to start on July 1.

Gold for immediate delivery is trading 0.1% higher today, at $1,573.57 per ounce. Gold for August delivery lost 0.9% or $13.50 to $1,574.90 per ounce yesterday, as some weak economic data in the US pushed the dollar higher, and as investors cautiously await the outcome of a key European Union summit due later this week.

Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5637, 0.1% lower against the EUR at €1.2507, and marginally down against the JPY at ¥124.23.

The EUR is trading 0.2% higher against the USD at $1.2504. Earlier, the currency was trading lower against the USD, ahead of an Italian debt auction. Italy would auction €9.0 billion of 185-day bills today, followed by sales of five- and 10-year bonds tomorrow amounting to €5.5 billion.

The EUR is trading 0.1% higher against the JPY at ¥99.34.

The JPY is trading higher against most of its major peers, ahead of a meeting between German Chancellor, Angela Merkel, and French President, Francois Hollande, later today, amid mounting speculation that the EU summit starting tomorrow would fail to introduce new measures to stem debt crisis.

The USD is trading lower against the JPY, ahead of a data due to be released this week that might show US consumer spending stalled in May.

Yesterday, the EUR closed lower against most of its peers, following a rise in Spanish and Italian bond yields, and after Moody’s Investors Service downgraded 28 Spanish banks.

The USD ended lower against the JPY, after a report showed that US consumer confidence fell for a fourth month in June to a five-month low.

June 26, 2012 Financial Market Summary

DJIA slipped 1.1% to end at 12,502.7. NASDAQ tumbled 1.9% to settle at 2,836.2. S&P 500 shed 1.6% to close at 1,313.7.

Nikkei 225 index is trading 0.5% lower at 8,690.9.

FTSE 100 dropped 1.1% to settle at 5,450.7.

FTSEurofirst 300 index lost 1.5% to end at 986.4.

In Asia, crude oil for August delivery is trading 0.1% or $0.10 lower at $79.11 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5580, marginally down against the EUR at €1.2449, and 0.2% higher against the JPY at ¥124.19.

US Market Snapshot

US markets fell sharply yesterday, amid pessimism over the result of a key summit of European Union leaders slated later this week. Stocks also declined after German Chancellor Angela Merkel rejected euro area debt sharing and Cyprus officially requested for a bailout. Financial sector stocks, BlackRock, Prudential Financial, SunTrust Banks, Hartford Financial Services and Fifth Third Bancorp declined between 3.0% and 4.1%, as news that Spain had officially requested EU loans to help bailout the nation's banks weighed on investor sentiment. Morgan Stanley lost 4.7%, as its head of German operations stepped aside, amid questions over a deal that caused a political scandal. Pfizer and Bristol-Myers Squibb dropped 1.1% and 3.5%, respectively, after the US FDA blocked an application to market their new anti-clotting drug.

DJIA slipped 1.1% to end at 12,502.7. NASDAQ tumbled 1.9% to settle at 2,836.2. S&P 500 shed 1.6% to close at 1,313.7.

Asian Market Snapshot

Asian markets are trading lower this morning, amid fading hopes that the European summit this week would deliver a solution to contain the region’s debt crisis. Moreover, a downgrade of China’s economic outlook by HSBC Holdings and a drop in South Korean consumer confidence also weighed on market sentiment. In Japan, Honda Motor traded lower, following report that the Chinese government has no imminent plans to subsidize car purchases. Nippon Electric lost value, after it trimmed its first quarter profit outlook. In Hong Kong, China Taiping Insurance Holding traded higher, after Fitch Ratings affirmed its Issuer Default Rating (IDR) at “BBB+”. In South Korea, exporters, Kia Motors and LG Electronics traded lower, amid concerns weak macroeconomic conditions would hamper demand.

Nikkei 225 index is trading 0.5% lower at 8,690.9. Hang Seng index is trading 0.2% higher at 18,927.6, while the Kospi index is trading 0.1% lower, at 1,816.0.

UK Market Snapshot

UK markets extended last week’s drop, declining sharply yesterday, as investors remained apprehensive about the outcome of the European summit later this week, amid fragile global growth and worries over the ongoing debt crisis. Shire plunged 11.3%, after the US-FDA approved a generic version of its second-biggest selling drug. Essar Energy fell 7.8%, despite reporting 15-month results that were broadly in line with market expectations. Evraz, Rio Tinto and Vedanta Resources dropped between 2.9% and 5.0%, amid continued global macroeconomic uncertainty. WM Morrison lost 1.3%, after its finance director, Richard Pennycook intended to step down at the end of June 2013. SABMiller fell 1.7%, as a broker cut its rating on the stock to “Sell” from “Hold”, while BT Group lost 2.0%, after Citigroup downgraded its rating to “Neutral” from “Buy”.

FTSE 100 dropped 1.1% to settle at 5,450.7, while FTSE 250 fell 1.4% to close at 10,671.4.

European Market Snapshot

Other European markets closed sharply lower yesterday, amid speculation that a summit of the eurozone policymakers this week would fail to yield concrete solutions to tackle the eurozone debt crisis. Unicredit and Intesa Sanpaolo sank 8.4% and 6.5%, respectively, after Exane BNP Paribas trimmed its 2013 earnings estimate for Italian banks by an average of 13.0%, while Deutsche Bank lost 4.4%, after a broker downgraded the stock to “Sector perform” from “Outperform”. ThyssenKrupp fell 4.3%, after JPMorgan trimmed its price estimate on the stock. Utilities, EON and RWE, lost 3.2% and 2.9%, respectively, on news that the companies might outsource nuclear disposals to Areva. ABB declined 2.8%, after JP Morgan Cazenove downgraded the stock to “Underweight” from “Neutral”.

FTSEurofirst 300 index lost 1.5% to end at 986.4. German DAX Xetra 30 dropped 2.1% to 6,132.4. French CAC-40 closed 2.2% lower at 3,021.6.

Commodities

In Asia, crude oil for August delivery is trading 0.1% or $0.10 lower at $79.11 per barrel. Yesterday, crude oil for August delivery declined 0.7% or 55 cents to end at $79.21 per barrel, on news that Saudi Arabia would not cut oil production this summer and after possibility of a tropical storm in the Gulf of Mexico was cast aside. Crude oil also lost value, amid continued concerns about the eurozone debt crisis ahead of a crucial meeting of European Union lawmakers this week.

Gold for immediate delivery is trading 0.1% lower today, at $1,584.45 per ounce. Gold for August delivery gained 1.4% or $21.50 at $1,588.40 per ounce yesterday, as scepticism that the European summit would result in concrete measures and signs of worsening debt crisis in the euro area, increased demand for the precious metal as an alternative investment. Reports that Cyprus had sought a bailout and Germany’s Chancellor Angela Merkel had hardened her resistance to euro-area debt sharing also boosted the demand for the safe haven metal.

Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5580, marginally down against the EUR at €1.2449, and 0.2% higher against the JPY at ¥124.19.

The EUR is trading 0.1% higher against the USD at $1.2513. The EUR is trading 0.1% higher against the JPY at ¥99.75.

The EUR is trading higher against the USD and the JPY. Earlier the currency was trading lower, as Moody’s Investors Service downgraded 28 Spanish banks yesterday and before Spain and Italy sell bonds today.

The JPY is trading lower against most of its major peers, as Japanese lower house lawmakers prepare to vote on a bill to double the consumption tax, later today.

The AUD is trading higher against most of its major peers, ahead of the Reserve Bank of Australia’s next week policy meeting, on hopes that the country’s economy is strong enough to weather effects of Europe’s debt crisis.

Yesterday, the EUR closed lower against the USD, amid mounting speculation that the European sovereign debt crisis would spread to bigger economies. The currency was also weighed down on report that Cyprus had officially requested a bailout and as Spanish bond yields surged.  The USD finished higher against the GBP, after US new home sales rose more-than-expected in May and the Federal Reserve Bank (Fed) of Dallas reported that, its manufacturing business activity index rose to a reading of 5.8 in June from a reading of -5.1 in May. The EUR closed lower against the GBP, amid continued concerns over the sovereign debt crisis in the euro area, but speculation of more easing by the Bank of England helped support the currency.

June 25, 2012 Financial Market Summary

DJIA rallied 0.5% to end at 12,640.8.NASDAQ surged 1.2% to settle at 2,892.4. S&P 500 climbed 0.7% to close at 1,335.0.

Nikkei 225 index is trading 0.2% lower at 8,785.1.

FTSE 100 shed 0.9% to settle at 5,513.7.

FTSEurofirst 300 index fell 0.7% to end at 1,001.9.

In Asia, crude oil for August delivery is trading 0.3% or $0.21 higher at $79.97 per barrel.

At 0400 BST today, the GBP is trading marginally down against the USD at $1.5582, 0.2% higher against the EUR at €1.2433, and 0.2% lower against the JPY at ¥125.11.

US Market Snapshot

US markets closed higher on Friday, shrugging off a much-anticipated round of bank downgrades by Moody’s, as the European Central Bank moved to ease its lending rules to allow financial institutions to pledge a wider range of assets to avail central-bank funds. Morgan Stanley, JP Morgan Chase and Bank of America added between 1.3% and 1.5%, as downgrades by Moody’s on the previous day were less severe than feared. First Solar soared 9.2%, after it received an approval to continue construction activities at its California solar farm. Facebook added 3.8%, after Nomura initiated a “Buy” rating on the stock, while Zynga jumped 4.8%, after a broker issued an upbeat note on its recent gaming portfolio. Harvest Natural Resources surged 86.9%, after it agreed to sell its Venezuela assets to Indonesia's PT Pertamina.

DJIA rallied 0.5% to end at 12,640.8.NASDAQ surged 1.2% to settle at 2,892.4. S&P 500 climbed 0.7% to close at 1,335.0

Asian Market Snapshot

Asian markets are trading mostly lower this morning, as investors grew cautious amid uncertainty ahead of a critical European Union summit later this week. In Japan, Renesas Electronics lost value, on news that the company might sell $621 million of new shares. Yahoo Japan traded lower following a report that the government would question the Internet Company on e-mail privacy. In Hong Kong, The Bank of East Asia and Hang Seng Bank traded higher, tracking gains in their US peers on Friday. Evergrande Real Estate Group traded higher amid favourable comments from several brokers. In South Korea, POSCO, paced lower, after the company reported that Nippon Steel had demanded $1.2 billion in compensation in a legal case.

Nikkei 225 index is trading 0.2% lower at 8,785.1. Hang Seng index is trading 0.2% higher at 19,023.1, while the Kospi index is trading 1.7% lower, at 1,816.0.

UK Market Snapshot

UK markets ended lower on Friday, weighed down by a sharp fall in mining sector stocks, amid concerns about the global economic recovery. BHP Billiton and Kazakhmys lost 2.7% and 3.0%, respectively, tracking a drop in base metal prices. Vedanta Resources fell 2.9%, amid speculation that the Indian government would reject Vedanta’s offer to buy stakes in Hindustan Zinc and Bharat Aluminium. Petrofac dropped 4.7%, ahead of a trading update on Tuesday. BP, Royal Dutch Shell and BG Group lost 1.2%, 1.7% and 2.4%, respectively, as risk appetite waned among investors. Vodafone Group edged down 0.2%, after Goldman Sachs removed the firm from its “Conviction Buy” list. Power provider, SSE lost 0.8%, after HSBC cut its rating from “Neutral” to “Underweight”. Marks & Spencer fell 3.1%, as Exane BNP Paribas initiated coverage on the stock with an “Underperform” rating.

FTSE 100 shed 0.9% to settle at 5,513.7. FTSE 250 fell 1.1% to end at 10,823.9.

European Market Snapshot

Other European markets closed lower on Friday, after German business confidence fell to its lowest level in more than two years in June. However, stocks trimmed some losses in the later session after the European Central Bank eased rules for collateral. Carmakers, Volkswagen, BMW and Porsche Automobil Holding declined between 0.9% and 1.5%, following report that rebates on new cars rose in June. Chemical maker, Solvay plunged 5.9%, after Citigroup trimmed its recommendation on the stock to “Sell” from “Neutral”. Bayer declined 2.5%, after the company and Johnson & Johnson failed to gain US FDA approval for wider use of their drug Xarelto. Royal KPN lost 4.4%, after ING Groep advised a “Sell” on the stock, citing volatility concern.

FTSEurofirst 300 index fell 0.7% to end at 1,001.9. German DAX Xetra 30 lost 1.3% to 6,263.3. French CAC-40 closed 0.7% lower at 3,090.9.

Commodities

In Asia, crude oil for August delivery is trading 0.3% or $0.21 higher at $79.97 per barrel. On Friday, crude oil for August delivery rose 2.0% or $1.56 to end at $79.76 per barrel, amid bargain hunting from investors following sharp losses in the previous sessions. Crude oil prices were also supported on news that the European Central Bank had relaxed some rules on bank collateral and amid possibility of a tropical storm in the Gulf of Mexico.

Gold for immediate delivery is trading marginally higher today, at $1,572.99 per ounce. Gold for August delivery added 0.1% or $1.50 to settle at $1,566.90 per ounce on Friday, on some bargain hunting from investors following previous day’s sharp sell-off. A weaker dollar also bolstered the demand for the yellow metal as an alternative investment.

 Currencies

At 0400 BST today, the GBP is trading marginally down against the USD at $1.5582, 0.2% higher against the EUR at €1.2433, and 0.2% lower against the JPY at ¥125.11.

The EUR is trading 0.2% lower against the USD at $1.2534 and 0.4% lower against the JPY at ¥100.63, ahead of the Italian and Spanish debt auction tomorrow, amid mounting speculation that eurozone debt crisis would spread to bigger economies of the region. The currency also traded lower amid speculation that data today would show a decline in German business confidence. 

The AUD and the NZD are trading lower against most of their major peers, ahead of the European leaders’ summit this week, as fears of escalation of the European sovereign debt crisis decreased demand for high yielding assets.

The JPY is trading higher against the USD. Earlier, the JPY was trading lower, as Prime Minister, Yoshihiko Noda’s, Democratic Party of Japan struggled to overcome internal conflict to his bill to double Japan’s sales tax.

On Friday, the EUR closed higher against the USD, after the European Central Bank stated that it would widen the range of securities it would accept from eurozone banks in exchange for its loans to boost lending to companies and household.

The JPY closed lower against the USD, after sales at supermarkets in Japan fell 1.7% in May to ¥1.04 trillion, compared to a 1.9% drop recorded in April, and after Japan's government retained its economic assessment, but warned of downside risks stemming from growing uncertainty about the economic situation in the Eurozone.

June 22, 2012 Financial Market Summary

DJIA slumped 2.0% to settle at 12,573.6. NASDAQ plunged 2.4% to close at 2,859.1. S&P 500 tumbled 2.2%, to end at 1,325.5.

Nikkei 225 index is trading 0.5% lower at 8,777.0.

FTSE 100 shed 1.0% to settle at 5,566.4.

FTSEurofirst 300 index fell 0.5% to end at 1,008.9.

In Asia, crude oil for August delivery is trading 0.6% or $0.45 higher at $78.65 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5613, flat against the EUR at €1.2432, and 0.3% higher against the JPY at ¥125.27.

US Market Snapshot

US markets dropped sharply yesterday, as a drop in regional manufacturing activity and disappointing labour and housing market data spooked investors. Moreover, a drop in eurozone business activity and contraction in China’s manufacturing also weighed on market sentiment. Morgan Stanley, JP Morgan Chase, Goldman Sachs Group, Citigroup and Bank of America slipped between 1.7% and 3.9%, amid speculation of an imminent downgrade of major global banks by Moody’s. Financials also extended losses after an independent audit showed that Spanish banks would need up to $78 billion in new capital. Bed, Bath and Beyond plummeted 17.0%, a day after the company forecasted weak earnings for the second quarter. Micron Technology slumped 7.8%, after it reported a fourth consecutive quarterly loss.

DJIA slumped 2.0% to settle at 12,573.6. NASDAQ plunged 2.4% to close at 2,859.1. S&P 500 tumbled 2.2%, to end at 1,325.5.

Asian Market Snapshot

Asian markets are trading lower this morning, taking cues from overnight losses on Wall Street, as a batch of weak economic reports increased worries about global growth. In Japan, banking stocks, Mitsubishi UFJ Financial Group, Shinsei Bank and Sumitomo Mitsui Financial Group traded lower after 15 global banks were downgraded by Moody’s Investors Service late Thursday. Bridgestone paced lower, on report that the company might extend its output cuts in the second half on slumping demand. In Hong Kong, Esprit Holdings and Prada traded lower as global growth concerns weighed on exporters. In South Korea, refiners, S-oil and SK Innovation paced declines tracking overnight losses in crude oil prices.

Nikkei 225 index is trading 0.5% lower at 8,777.0. Hang Seng index is trading 1.0% lower at 19,070.8, while the Kospi index is trading 2.3% lower, at 1,845.5.

 UK Market Snapshot

UK markets closed lower yesterday, led by a decline in mining and financial sector stocks, after weak manufacturing reports in Europe and China compounded fears about a faltering global economy, shrugging off better-than-expected domestic retail sales data. BHP Billiton, Rio Tinto, Vedanta Resources and Anglo American fell between 3.1% and 5.2%, as a gauge of China’s manufacturing activity slipped to a seven-month low. Barclays and Royal Bank of Scotland shed 1.7% each, while Standard Chartered lost 2.1%, amid a possible looming downgrade of major global banks by Moody’s Investor Services. Royal Dutch Shell, BG Group and BP lost between 1.3% and 3.2%, tracking a decline in crude oil prices. WPP fell 1.0%, as Jefferies reiterated its “Underperform” rating on the stock. Invensys tumbled 14.4%, after rejecting a takeover approach from Emerson Electric.

FTSE 100 shed 1.0% to settle at 5,566.4, while FTSE 250 lost 0.7% to end at 10,944.7.

European Market Snapshot

Other European markets slid yesterday, as downbeat economic data in the US and Germany, and preliminary data that pointed to a decline in China’s manufacturing activity weighed on market sentiment. Investors also remained cautious in anticipation of the audit of Spain’s banking sector. Banks, Societe Generale and BNP Paribas declined 1.3% and 1.4%, respectively, amid reports that Moody’s Investors Service was set to downgrade major UK banks later in the evening. Carmakers, Volkswagen, Daimler and BMW dropped between 0.8% and 3.1%, as signs that global economic recovery is faltering raised worries about future demand. Royal KPN lost 5.3%, after UBS downgraded the stock to “Neutral” from “Buy”. Retailer, Cewe Color Holding fell 1.8%, despite a “Buy” call on the stock by Deutsche Bank.

FTSEurofirst 300 index fell 0.5% to end at 1,008.9. German DAX Xetra 30 dropped 0.8% to 6,343.1. French CAC-40 closed 0.4% lower at 3,114.2.

Commodities

In Asia, crude oil for August delivery is trading 0.6% or $0.45 higher at $78.65 per barrel. Yesterday, crude oil for August delivery declined 4.0% or $3.25 to settle at $78.20 per barrel, as downbeat economic data from China, the US and Europe raised concerns over demand prospects. Crude oil prices remained under pressure as global crude oil inventories continue to remain well supplied on higher oil production from Saudi Arabia and on sluggish demand.

Gold for immediate delivery is trading 0.3% lower today, at $1,563.85 per ounce. Gold futures for August delivery dropped 3.1% or $50.30 to $1,565.50 per ounce yesterday, as the US dollar strengthened amid downbeat global economic reports and a day after the US Federal Reserve failed to announce new monetary stimulus after its policy meeting.

 Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5613, flat against the EUR at €1.2432, and 0.3% higher against the JPY at ¥125.27.

The EUR is trading 0.1% higher against the USD at $1.2560. Earlier, the currency was trading lower, amid speculation that a report would show German business confidence fell in June, raising fears that the global economy is faltering.

The EUR is trading 0.3% higher against the JPY at ¥100.76.

The USD is trading higher against the JPY, after spreads between the difference between yields on Japanese and US two-year government securities this week reached the most since April 5.

The AUD and NZD are trading higher against the USD, ahead of reports due to be released next week that might point to a slowdown in home sales growth and weakening consumer confidence, raising speculation that the US Federal Reserve might consider another round of asset purchases, or quantitative easing.

Yesterday, the EUR closed lower against the USD, amid mounting concerns about the European sovereign debt crisis, after Moody’s Investors Service downgraded 15 global banks. The currency also lost value, as downbeat global economic reports and concerns about the US, Europe and Chinese, economies dampened the demand for riskier assets. The GBP closed higher against the EUR, after UK retail sales rose more-than-expected in May and survey indicated that total industrial order book balance in the country rose in June. The CAD finished lower against the USD, as investors sought the safety of the greenback, following weak US economic reports and tightening of domestic mortgage rules.