Friday, 15 June 2012

June 15, 2012 Financial Market Summary



DJIA soared 1.2%, to settle at 12,651.9. NASDAQ climbed 0.6%, to close at 2,836.3. S&P 500 jumped 1.1% to finish at 1,329.1.
Nikkei 225 index is trading 0.3% higher at 8,595.9.
FTSE 100 edged down 0.3% to settle at 5,467.1.
FTSEurofirst 300 index eased 0.3% to 983.8.
In Asia, crude oil for July delivery is trading 0.9% or $0.70 higher at $84.61 per barrel.
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5546, 0.1% lower against the EUR at €1.2310, and 0.6% lower against the JPY at ¥122.79.
US Market Snapshot
US markets advanced yesterday, as weak domestic economic data fuelled speculation of further monetary easing from the Federal Reserve and amid reports that major central banks stood ready to provide liquidity to the financial markets following Greece's crucial election on Sunday. International Game Technology, the top gainer on the S&P 500 index, surged 14.4%, as it revealed plans to buy back up to $1 billion in stock. Exxon Mobil and Chevron gained 1.9% and 1.8%, respectively, tracking a rise in crude oil prices. Regions Financial rose 2.3%, after Goldman Sachs upgraded the stock to “Buy” from “Neutral”. Apache, EQT and Cabot Oil & Gas rallied between 3.7% and 8.6%, following an unexpected bullish weekly storage report. Kroger rallied 6.1%, after its first quarter earnings topped estimates.
DJIA soared 1.2%, to settle at 12,651.9. NASDAQ climbed 0.6%, to close at 2,836.3. S&P 500 jumped 1.1% to finish at 1,329.1.
Asian Market Snapshot
Asian markets are trading mostly higher this morning, tracking overnight gains in US equity markets, amid reports that major central banks might take coordinated measures to bolster eurozone economies, if needed, following the weekend Greece elections. In Japan, Renesas Electronics gained value, following reports that it would close or sell half of its plants and cut as much as 30% of its workforce. DeNA traded higher after the company announced that it would buy back as much as 10.0% of its shares. In Hong Kong, Bank of China, gained value, on news that one of its unit had started an oil products trading desk in Singapore. In South Korea, SK Hynix lost value, following report that one of its stakeholders, Woori Bank, would sell a 1.4% stake in the company.
Nikkei 225 index is trading 0.3% higher at 8,595.9. Hang Seng index is trading 1.1% higher at 19,009.1, while the Kospi index is trading 0.7% lower, at 1,858.7.

UK Market Snapshot
UK markets closed on a mixed note yesterday, with the FTSE 100 index drifting lower, after Moody’s investor services slashed Spain’s credit rating and as borrowing cost in Italy jumped. British Sky Broadcasting Group (BSkyB) and BT Group both dropped 3.5%, amid fears that both had overpaid to acquire Premier League television rights. Further, weighing on BSkyB, Numis Securities slashed its rating to “Add” from “Buy”. Miners, Antofagasta, Anglo American, Xstrata and Fresnillo fell between 1.5% and 2.4%, tracking a decline in base metal prices, as Credit Suisse Group and Deutsche Bank, both reduced China’s growth prospects for the year 2012. Tullow Oil lost 2.1%, amid reports that France had suspended offshore drilling permits in French Guiana. However, Premier Farnell rallied 3.7%, after Goldman Sachs added the stock to its “Conviction Buy” list.
FTSE 100 fell 0.3% to settle at 5,467.1, while FTSE 250 edged up 0.3% to close at 10,574.6.
European Market Snapshot
Other European markets closed mostly lower yesterday, ahead of the second round of Greek elections on Sunday, and as both Moody’s Investors Service and Egan-Jones Ratings downgraded Spain’s credit rating. However, losses were restricted after Italy raised the targeted maximum amount at a debt auction. Credit Suisse slumped 10.5%, after the Swiss National Bank urged the bank to bolster its capital base this year. BMW and Daimler lost 2.8% and 2.2%, respectively, after Morgan Stanley trimmed its EPS estimates for the companies by 5.0% to 10.0% for 2012 to 2014. Teleperformance dropped 1.4%, after a broker downgraded the stock to “Underperform” from “Outperform”. Nokia plunged 17.8%, after the company announced that it would cut 10,000 jobs and shuffle the top management.
FTSEurofirst 300 index eased 0.3% to 983.8. German DAX Xetra 30 dropped 0.2% to 6,138.6. French CAC-40 closed 0.1% higher at 3,032.5.
Commodities
In Asia, crude oil for July delivery is trading 0.9% or $0.70 higher at $84.61 per barrel. Yesterday, crude oil for July delivery rose 1.6% or $1.29 to close at $83.91 per barrel, as fuel energy demand concerns eased, on hopes that the US Fed would expand its monetary policy to stimulate growth following a worse-than-expected jobless claims report. Crude oil also gained value, after the Organization of the Petroleum Exporting Countries (OPEC) kept its collective production ceiling unchanged after a meeting in Vienna.
Gold for immediate delivery is trading 0.3% higher today, at $1,625.75 per ounce. Gold for August delivery added 20 cents to settle at $1,619.60 per ounce yesterday, as prospects for further monetary easing by the US Federal Reserve following weak domestic economic data and caution ahead of the key Greece elections this Sunday, increased the precious metal’s investment appeal.

Currencies
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5546, 0.1% lower against the EUR at €1.2310, and 0.6% lower against the JPY at ¥122.79.
The EUR is trading marginally up against the USD at $1.2628. The EUR is trading 0.5% lower against the JPY at ¥99.75, after Moody’s Investors Service downgraded five Dutch banking groups.
The USD is trading lower against most of its major peers, amid speculation that a US data due to be released would show industrial production slowed and consumer confidence fell in the US, raising speculation of further monetary easing by the US Federal Reserve.
The JPY is trading higher against most of its major peers, after the Bank of Japan kept both its asset-purchase fund and credit lending program unchanged at ¥40.0 trillion and ¥30.0 trillion, respectively.
The AUD and the NZD are trading higher against the USD, ahead of a G-20 nations’ summit in Mexico, on 18-19 June, amid optimism that the policymakers would discuss measures to stem European debt crisis, spurring demand for high yielding assets.
Yesterday, the USD ended lower against the EUR, after reports showed that the US consumer price index declined and the initial jobless claims unexpectedly increased in the last week. The NZD closed higher against most of its major peers, after the Reserve Bank of New Zealand Governor, Alan Bollard, refrained from interest rate cut and left its benchmark official cash rate unchanged at2.5% till mid-2013. The GBP closed lower against the EUR, after Chancellor of the Exchequer, George Osborne, shared joint steps with the Bank of England to boost liquidity in the financial markets amid a deteriorating outlook in Europe.

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