June 11, 2012 Financial Market Summary

DJIA advanced 0.7% to settle at 12,554.2. NASDAQ gained 1.0% to close at 2,858.4. S&P 500 added 0.8% to finish at 1,325.7.

Nikkei 225 index is trading 1.9% higher at 8,616.8.

FTSE 100 edged down 0.2% to settle at 5,435.1. FTSEurofirst 300 index fell 0.2% to 982.3.

In Asia, crude oil for July delivery is trading 2.1% or $1.78 higher at $85.88 per barrel.

At 0400 BST today, the GBP is trading 0.6% higher against the USD at $1.5551, 0.4% lower against the EUR at €1.2314, 0.8% higher against the JPY at ¥123.79.

US Market Snapshot

US markets rallied on Friday, amid heightening speculation that Euro-zone leaders are moving closer to tackling the region's ongoing debt crisis and that Spain might formally request for emergency assistance over the weekend. Chesapeake gained 2.9%, after it announced plans to raise more than $4.0 billion through asset sales. Wal-Mart Stores added 3.6%, after data revealed that US wholesale businesses restocked faster in April, amid robust sales. Medicaid health insurers, Centene and Molina Healthcare surged 8.0% and 26.4%, respectively, after they won back contracts to continue as Medicaid plan providers for the Ohio state, after protesting their earlier rejection for new contracts starting next year. Navistar soared 17.6%, after billionaire investor, Carl Icahn boosted his stake in the company by 1.9%. Nokia rallied 6.7%, amid speculation that it might be a takeover target of Samsung.

DJIA advanced 0.7% to settle at 12,554.2. NASDAQ gained 1.0% to close at 2,858.4. S&P 500 added 0.8% to finish at 1,325.7.

Asian Market Snapshot

Asian markets are trading higher this morning, amid news that Spain would seek a bailout for its troubled banking sector, easing fears about the Europe’s contagion. In Japan, Sharp surged after the company stated that Foxconn Technology would start buying its panels earlier than expected under a revival plan. Fanuc gained value amid hopes of higher exports to Chinese factories following upbeat trade data from China. In Hong Kong, HSBC Holdings and Industrial & Commercial Bank of China gained values amid speculation China’s policy makers would take additional measures to stimulate growth after China’s inflation eased more-than-forecast in May. In South Korea, SK Hynix gained value after it reported chip-development alliance with IBM and LG Display.

Nikkei 225 index is trading 1.9% higher at 8,616.8. Hang Seng index is trading 1.9% higher at 18,853.7, while the Kospi index is trading 1.6% higher, at 1,864.6.

UK Market Snapshot

UK markets retreated modestly on Friday, led by a decline in commodity sector stocks, after German exports fell higher-than-expected in April and as Fitch slashed Spain’s sovereign credit rating by three notches. Miners fell sharply, with Vedanta Resources, the top laggard on the FTSE 100 index, declining 5.1%, while Antofagasta, Kazakhmys, ENRC and Rio Tinto lost between 2.2% and 4.8%, as metal prices lost ground. BG Group, BP and Tullow Oil fell 0.9%, 1.1% and 1.7%, respectively, as oil prices eased. Banks, Royal Bank of Scotland and Barclays declined 0.6% and 1.3%, respectively, as risk appetite waned. However, banking stocks pared losses, amid speculation that Spain might officially request the European Union for financial aid over the weekend to help its ailing banking sector.

FTSE 100 edged down 0.2% to settle at 5,435.1, while FTSE 250 slid 0.4% to end at 10,699.0.

European Market Snapshot

Other European markets closed lower on Friday, after data showed that German exports declined more-than-expected and Fitch Ratings downgraded Spain’s credit rating to “BBB” from “A”, late Thursday. ThyssenKrupp declined 3.8%, after Standard & Poor’s cut its credit rating, citing losses from its US business and lower-than-estimated profit from its European operations. Novo Nordisk fell 2.6%, after the US Food and Drug Administration extended the review of its two new insulin drugs by three months. Hennes & Mauritz slipped 0.6%, after Societe Generale recommended a “Sell” on the stock. Lamprell plummeted 22.3%, after the company lowered its previous earnings forecast. Advertising company, Havas fell 4.2%, after Barclays downgraded the stock to “Equalweight” from “Overweight”.

FTSEurofirst 300 index fell 0.2% to 982.3. German DAX Xetra 30 fell 0.2% to 6,130.8. French CAC-40 closed 0.6% lower at 3,051.7.

Commodities

In Asia, crude oil for July delivery is trading 2.1% or $1.78 higher at $85.88 per barrel. On Friday, crude oil for July delivery dropped 0.9% or 72 cents to settle at $84.10 per barrel, as weak economic data from Germany and Spain’s credit rating downgrade coupled with fading hopes of stimulus measures from the US Federal Reserve reinforced concerns about future crude oil demand. However, lack of any progress in talks between Iran and UN International Atomic Energy Agency continued to support oil prices.

Gold for immediate delivery is trading 0.2% higher today, at $1,596.43 per ounce. Gold for August delivery gained 0.2% or $3.40 to end at $1,591.40 per ounce on Friday, as the euro cut losses against the US dollar amid hopes over the upcoming rescue plan for the Spanish troubled banking sector. 

Currencies

At 0400 BST today, the GBP is trading 0.6% higher against the USD at $1.5551, 0.4% lower against the EUR at €1.2314, 0.8% higher against the JPY at ¥123.79.

The EUR is trading 1.0% higher against the USD at $1.2627. The EUR is trading 1.1% higher against the JPY at ¥100.52.

The EUR is trading higher against most of its major counterparts, after the region’s government agreed to provide Spain with its requested bailout loan to rescue its ailing banking system. However, the demand for EUR was limited, amid speculation that economic data from France and Italy would add to signs that the debt crisis is damping growth.

The USD and the JPY declined against most major currencies as demand for safe haven decreased, following a rise in Asian equity markets. 

On Friday, the USD ended higher against the EUR and the GBP, extending its support from the US Federal Reserve comments in the prior session. However, gains were capped against the EUR, amid speculations that progress would be made over the weekend to add new funding into Spanish banks.
The GBP closed lower against the USD, after a report showed that UK output price inflation slowed to lowest since 2009 in May and amid ongoing concern that the European debt crisis is hurting the region’s economy. The GBP closed higher against the EUR, after The Society of Motor Manufacturers and Traders (SMMT) reported that UK new car registrations increased sharply in May and after a report showed that construction orders rebounded in the first quarter.