June 18, 2012 Financial Market Summary

DJIA rallied 0.9% to settle at 12,767.2. NASDAQ surged 1.3% to close at 2,872.8. S&P 500 gained 1.0% to end at 1,342.8.

Nikkei 225 index is trading 1.8% higher at 8,720.3.

FTSE 100 edged up 0.2% to settle at 5,478.8. FTSEurofirst 300 index added 1.0% to 993.2.

In Asia, crude oil for July delivery is trading 1.1% or $0.91 higher at $84.94 per barrel.

At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5706, 0.3% lower against the EUR at €1.2375, and 0.8% higher against the JPY at ¥124.44.

US Market Snapshot

US markets closed higher on Friday, amid speculation that major central banks would take steps to stabilize the financial markets, if needed, after the crucial election in Greece on Sunday. Separately, stocks extended gains, on hopes that the recent slew of weak domestic economic data would prompt the Federal Reserve to announce new stimulus to boost the flagging economy at its next meeting. Travelers, JP Morgan Chase, American Express and Bank of America added between 0.5% and 3.1%, amid hopes of coordinated actions by major central banks, ahead of a G-20 summit. Insurer, American International Group advanced 1.5%, after it reduced outstanding support from the US government by more than $152 billion. Microsoft gained 2.3%, following its acquisition of social network Yammer for $1.2 billion.

DJIA rallied 0.9% to settle at 12,767.2. NASDAQ surged 1.3% to close at 2,872.8. S&P 500 gained 1.0% to end at 1,342.8.

Asian Market Snapshot

Asian markets are trading higher this morning, as concerns that Greece would leave the 17-member currency bloc eased after a Greek national election exit-poll results showed parties supporting austerity measures won enough seats to control parliament and after China’s central bank forecasted a rebound in the country’s economy in the next quarter. In Japan, Ibiden gained value, after Merrill Lynch upgraded the stock to “Buy” from “Neutral”. Honda traded higher, after a newspaper reported that the company would focus on small-sized cars in the country. In Hong Kong, Petrochina traded higher, following a rise in crude oil prices. In South Korea, Hyundai Heavy Industries paced higher, after the company stated that it had bagged orders worth $600 million to build oil and gas rigs.

Nikkei 225 index is trading 1.8% higher at 8,720.3. Hang Seng index is trading 1.7% higher at 19,562.6, while the Kospi index is trading 2.1% higher, at 1,896.8.

UK Market Snapshot

UK markets closed higher on Friday, after the British Chancellor of the Exchequer stated that the Bank of England would activate an emergency lending program, if required, to combat an escalation of the eurozone debt crisis. However, gains were capped following reports that the UK posted its second largest trade deficit and construction output fell sharply in April. Banks, Barclays, Lloyds Banking Group and Royal Bank of Scotland rallied between 4.2% and 7.9%, as the Bank of England and the UK Treasury planned to inject £180 billion into the UK economy. Man Group climbed 5.3%, after Merrill Lynch restated a “Buy” advice on the stock. Miners, BHP Billiton, Rio Tinto and Vedanta Resources gained between 1.3% and 6.3%, in line with a rise in base metal prices. Energy stocks, BG Group and BP added 1.1% and 1.6%, respectively, as oil prices gained ground.

FTSE 100 edged up 0.2% to settle at 5,478.8, while FTSE 250 surged 1.5% to end at 10,729.7.

European Market Snapshot

Other European markets rallied on Friday, amid reports that central banks would inject liquidity into the financial system if weekend elections in Greece lead to further turmoil and credit crunch in the euro region. Financial sector stocks, Credit Agricole, Commerzbank and Deutsche Bank surged between 3.8% and 6.3%, as risk appetite increased among investors. Carmakers, Daimler, Volkswagen and Peugeot, gained between 1.8% and 2.4% amid optimism that global demand for automobiles would recover. Total, Eni and Repsol gained between 1.2% and 3.0%, following higher crude oil prices. Carrefour soared 5.9%, after the company announced that it would sell its stake in its Greek unit, while Hennes & Mauritz rose 2.1%, after the company’s second-quarter sales surpassed market expectations.

FTSEurofirst 300 index added 1.0% to 993.2. German DAX Xetra 30 advanced 1.5% to 6,229.4. French CAC-40 closed 1.8% higher at 3,087.6.

Commodities

In Asia, crude oil for July delivery is trading 1.1% or $0.91 higher at $84.94 per barrel. On Friday, crude oil for July delivery rose 0.1% or 12 cents to settle at $84.03 per barrel, boosted on speculation that weak economic data would prompt the US federal Reserve to introduce stimulus measures at its next meeting and after the OPEC stated that its members would reduce the group's output to adhere to its 30 million barrels per day (bpd) output ceiling. However, gains were limited, as investors continued to be focused on the eurozone crisis ahead of the Greece parliamentary elections on Sunday.

Gold for immediate delivery is trading 0.3% lower today, at $1,622.93 per ounce. Gold for August delivery added 0.5% $8.50 to settle at $1,628.10 per ounce on Friday, amid reports that global central banks stood ready to inject liquidity into the financial system to avert any market disruptions following the weekend Greek elections and expectations of new monetary stimulus from the US Federal Reserve.

Currencies

At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5706, 0.3% lower against the EUR at €1.2375, and 0.8% higher against the JPY at ¥124.44.

The EUR is trading 0.4% higher against the USD at $1.2691.

The EUR is trading 1.1% higher against the JPY at ¥100.55.

The EUR is trading higher against the USD and the JPY, after an exit poll results showed that Greece’s two largest pro-bailout parties, New Democracy and Pasok, had won enough seats to build a parliamentary majority.

The AUD is trading higher against the USD, as easing concerns about the eurozone increased demand for riskier assets. Australia’s treasurer reported that mineral exploration spending in the country reached a record in March.

The NZD is trading higher against the JPY, after data showed that New Zealand’s services industries grew in May.

On Friday, the EUR closed higher against the USD, amid reports that major central banks would inject liquidity into the markets to avert any further turmoil following the weekend elections in Greece.

The USD ended lower against most of its major peers, after reports showed that the US consumer confidence declined in June to the lowest level this year, and industrial production edged down 0.1% in May.