Monday 4 June 2012

June 01, 2012 Financial Makrket Summary


DJIA edged down 0.2% to close at 12,393.5. NASDAQ slid 0.4% to settle at 2,827.3. S&P 500 ticked down 0.2% to end at 1,310.3.
Nikkei 225 index is trading 0.7% lower at 8,479.1.
FTSE 100 advanced 0.4% to close at 5,320.9.
FTSEurofirst 300 index declined 0.3% to 973.1.
In Asia, crude oil for July delivery is trading 0.2% or $0.20 lower at $86.33 per barrel.
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5378, marginally lower against the EUR at €1.2450, 0.3% lower against the JPY at ¥120.62.
US Market Snapshot
US markets retreated yesterday, as data showed the US economy expanded at a slower-than-expected pace in the first quarter and jobless claims increased for the fourth straight week. Additionally, business activity in the US expanded at a slower pace in May casting doubts over the pace of economic recovery. Mining-equipment maker, Joy Global slipped 5.4%, as it trimmed its full-year projections, while Caterpillar declined 2.8%, as striking workers at its plant in Illinois rejected the company's latest contract offer. Television service provider, TiVo slipped 4.7%, as it swung to a first quarter loss. Kohl shed 6.2%, as its May same-store sales decreased 4.2%, while Buckle dropped 8.1%, as it missed sales expectations for the third month in a row.

DJIA edged down 0.2% to close at 12,393.5. NASDAQ slid 0.4% to settle at 2,827.3. S&P 500 ticked down 0.2% to end at 1,310.3.
Asian Market Snapshot
Asian markets are trading mostly lower this morning, tracking overnight losses on Wall Street, following downbeat US economic reports. Additionally, reports of a slowdown in Chinese manufacturing activity and continued concerns about the situation in eurozone also dented market sentiment. In Japan, Hitachi Construction and Komatsu traded lower, after their US peer, Joy Global, trimmed its full-year earnings and revenue forecasts. Aozora Bank lost value after the company stated that it would not announce plans for repaying public funds at its June shareholder meeting. In Hong Kong, Zijin Mining Group paced higher, after Norton Gold Fields accepted a takeover offer from the company. In South Korea, POSCO and KISCO paced declines, amid concerns over their exposure to the Chinese
market.
Nikkei 225 index is trading 0.7% lower at 8,479.1. Hang Seng index is trading 0.2% higher at 18,672.4, while the Kospi index is trading 0.3% lower, at 1,837.1.
UK Market Snapshot
UK markets advanced yesterday, stabilizing after heavy losses in the previous session, on reports of corporate merger activities. However, persisting worries about the eurozone and mostly disappointing economic data from the US capped the upside momentum. InterContinental Hotels, the biggest riser on the FTSE 100 index, jumped 6.1%, as US activist investor, Nelson Peltz’s Trian Fund Management acquired a 4.27% stake in the hotels group. Logica surged 68.8%, after Canada’s CGI Group announced that it would acquire the firm. Sage Group and Fidessa rose 2.4% and 2.3%, respectively, amid speculations that they can be potential takeover targets. Insurance major, Prudential gained 0.7%, as it agreed to buy Swiss Re's US-based life insurance business. However, ENRC, Kazakhmys and Xstrata slipped between 1.8% and 2.8%, tracking a decline in base metal prices.

FTSE 100 advanced 0.4% to close at 5,320.9, while FTSE 250 gained 0.6% to settle at 10,558.2.
European Market Snapshot
Other European markets closed mostly lower yesterday, as disappointing economic data in the US overshadowed optimism over upbeat jobless and retail sales data in Germany. Industrial sector stock, ABB lost 2.9%, on news that the company’s low-voltage subsidiary might miss top end of revenue targets, amid lacklustre demand from China and Italy. Carmakers, Peugeot, BMW and Renault, sank between 1.5% and 2.9%, amid concerns about future demand, following weak US economic data. Holcim dropped 3.6%, in line with other European construction sector stocks on concern that China’s economy is slowing. However, Telefonica rose 1.0%, after its board approved an IPO for its subsidiary, O2 Germany. Gas-network operator, Snam gained 4.2%, after Italy’s biggest oil company, Eni stated that it would sell 30% stake in Snam to a state-owned bank.

FTSEurofirst 300 index declined 0.3% to 973.1. German DAX Xetra 30 dropped 0.3% to 6,264.4. French CAC-40 closed marginally higher at 3,017.0.

Commodities

In Asia, crude oil for July delivery is trading 0.2% or $0.20 lower at $86.33 per barrel. Yesterday, crude oil for July delivery fell 1.5% or $1.29 to $86.53 per barrel, after the Energy Information Administration reported a 2.2 million barrel rise in US crude oil inventories for the week ended 25 May and as a survey showed that oil output by the Organization of Petroleum Exporting Countries rose in May to the highest level since 2008.Crude oil also lost value amid concerns about demand prospects, following mostly disappointing data from the US, Europe and Asia.

Gold for immediate delivery is trading 0.4% lower today, at $1,555.23 per ounce. Gold for August delivery dropped 0.1% or $1.50 to end at $1,564.20 per ounce yesterday, as a slew of downbeat economic data in the US fuelled a sell-off in the global equity markets, as investors favoured holding cash instead of precious metals futures. 

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5378, marginally lower against the EUR at €1.2450, 0.3% lower against the JPY at ¥120.62.
The EUR is trading 0.1% lower against the USD at $1.2352.
The EUR is trading 0.2% lower against the JPY at ¥96.89.
The USD is trading higher against the AUD and the NZD, after reports showed that China’s manufacturing activity slowed more-than-estimated, spurring demand for safe haven asset.
The EUR is trading lower against the USD, after leaders of Italy and the European Central Bank pushed Germany to give up its opposition to direct eurozone aid for struggling banks to stabilize the region’s economies. The European Central Bank stepped up pressure yesterday for a joint guarantee on bank deposits across the euro zone
The JPY is trading higher against most of its major peers. Earlier, the currency was trading lower, after the Japanese Finance Minister, Jun Azumi, pledged to intervene in currency markets if excessive gains in the currency persist.
Yesterday, the USD closed higher against the EUR, as downbeat economic data in the US increased demand for safe haven. The AUD finished lower against the JPY, as disappointing US economic reports and persistent concerns about eurozone debt crisis dampened the demand for high yielding assets. The NZD is trading lower against JPY, after the New Zealand’s terms of trade index fell for a third-quarter, on the back of a stronger currency and weak global markets.

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