Tuesday, 31 July 2012

July 31, 2012 Financial Market Summary

DJIA edged down marginally to settle at 13,073.0. NASDAQ ticked down 0.4% to close at 2,945.8. S&P 500 slipped marginally to end at 1,385.3.
Nikkei 225 index is trading 0.5% higher at 8,679.5.
FTSE 100 surged 1.2% to close at 5,693.6.
FTSEurofirst 300 index advanced 1.6% to 1,073.0.
In Asia, crude oil for September delivery is trading 0.3% or $0.24 higher at $90.02 per barrel.
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5723, 0.1% lower against the EUR at €1.2798, and 0.2% higher against the JPY at ¥122.95.
US Market Snapshot
US markets ended lower yesterday, as investors remained cautious ahead of the central bank meeting and release of a slew of domestic economic data. JPMorgan declined 2.0%, following a downgrade at Deutsche Bank from “Buy” to “Hold”. Retailer, Abercrombie & Fitch, slated to release its second-quarter sales report on Thursday, dropped 3.7%, as Morgan Stanley reduced its earnings estimate. Flooring maker, Armstrong World Industries tumbled 12.8%, as the company lowered its full-year guidance for both earnings and revenue, following downbeat second-quarter results. Insurance firm, Loews slumped 5.2%, after reporting a sharp drop in its second-quarter earnings. However,, Supervalu surged 12.6%, as it ousted its CEO and named Wayne Sales as chairman to succeed him in an effort to speed up a lagging turnaround.
DJIA edged down marginally at 13,073.0. NASDAQ ticked down 0.4% to close at 2,945.8. S&P 500 slipped marginally to end at 1,385.3.
Asian Market Snapshot
Asian markets are trading higher this morning, amid optimism that the US Federal Reserve and the ECB would hint at monetary easing measures to stimulate economic growth. In Japan, Canon traded higher, as it unveiled a share buyback plan of ¥50 billion, while Panasonic paced gain, amid optimism that it would report higher net profit, after the market close today. Hitachi gained value as its first-quarter operating profit surpassed market expectation. In Hong Kong, Hang Lung Properties and China Resources Power Holdings are trading higher, amid hopes for near-term monetary easing. In South Korea, troubled shipbuilders jumped on bargain-hunting, with STX Offshore & Shipbuilding and Hyundai Heavy Industries gaining values.
Nikkei 225 index is trading 0.5% higher at 8,679.5. Kospi index is trading 1.3% higher at 1,867.6. Hang Seng index is trading 0.8% higher at 19,734.8.
UK Market Snapshot
UK markets rallied yesterday, led by gains in banking and commodity sector stocks, amid optimism that major central banks would unveil near-term stimulus to support economic growth. International Airlines Group surged 7.2%, after its peer Air France halved its operating loss in second-quarter. Mining firms underpinned gains, with Rio Tinto, Kazakhmys, Vedanta Resources and ENRC climbing between 1.6% and 4.5%, as base metal prices edged up during the London session. Global banking group, HSBC gained 2.3%, as it reported an 11% rise in its pre-tax profit in the first-half. Barclays, Lloyds Banking Group and RBS rose between 2.1% and 3.6%, as risk appetite improved amongst investors. National Grid added 1.1%, as it maintained its guidance for the full year. Aviva rose 4.4%, following weekend reports that it might dispose its US business for around £1.0 billion.
FTSE 100 surged 1.2% to close at 5,693.6, while FTSE 250 added 0.5% to end at 11,238.9.
European Market Snapshot
Other European markets closed higher yesterday, amid expectations the European Central Bank (ECB) would take action to contain the region’s debt crisis, including buying government debt to rein in high borrowing costs. Air France rallied 19.0%, after it posted a narrower-than-expected second-quarter loss. Banks, Credit Agricole, Societe Generale, Commerzbank and Deutsche Bank surged between 2.0% and 7.0%, as risk appetite improved among investors. ArcelorMittal advanced 5.4%, after its CEO Lakshmi Mittal stated that the company might shut more plants and make further redundancies. Siemens rose 3.4% after a report stated that ThyssenKrupp would not merge with the company. K+S gained 2.7%, after it reported second-quarter results that surpassed market expectations.
FTSEurofirst 300 index advanced 1.6% to 1,073.0. German DAX Xetra 30 rose 1.3% to 6,774.1. French CAC-40 closed 1.2% higher at 3,320.7.
Commodities
In Asia, crude oil for September delivery is trading 0.3% or $0.24 higher at $90.02 per barrel. Yesterday, crude oil for September delivery dropped 0.4% or $0.35 to settle at $89.78 per barrel, as the dollar advanced against the euro, and as an unexpected drop in Japan’s industrial production and dismal European economic confidence data sparked worries over demand outlook. Oil prices also fell, as investors remained cautious ahead of the outcome of US Federal Reserve, Bank of England and ECB’s meetings due in this week.
Gold for immediate delivery is trading 0.2% higher today, at $1,624.15 per ounce. Gold for August delivery settled up $0.70 at $1,618.70 per ounce yesterday, on rising expectations that the US Federal Reserve and the ECB would take further steps to spur economic growth.
Currencies
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5723, 0.1% lower against the EUR at €1.2798, and 0.2% higher against the JPY at ¥122.95, ahead of Bank of England’s policy makers meet starting tomorrow.
The EUR is trading 0.2% higher against the USD at $1.2285. The EUR is trading 0.3% higher against the JPY at ¥96.08. However, earlier in the session, the EUR traded lower, ahead of reports this week which are expected to show that eurozone jobless rate rose to a record high in June and manufacturing activity shrank in July. Investors also remained concerned ahead of the outcome of the ECB’s Governing Council meets this week.
The USD is trading lower against the JPY, amid speculation that US Federal Reserve policy makers might signal another round of monetary stimulus in a two-day meeting that starts today.
The AUD is trading higher against its major peers, after a report indicated that the number of building approvals in Australia fell less-than-expected in June.
Yesterday, the EUR ended lower against the USD, as investor speculated that European officials’ pledge to preserve the euro and ECB’s bond purchases program would not be enough to solve worsening debt crisis in the region. However, the demand for the USD was tempered amid speculation of further monetary easing by US Federal Reserve.
The JPY ended higher against the USD. However, in earlier trading session, the JPY was trading lower against the USD, after data revealed an unexpected drop in Japan’s monthly industrial production in June.

Monday, 30 July 2012

July 30, 2012 Financial Market Summary


DJIA soared 1.5% to settle at 13,075.7. NASDAQ jumped 2.2% to close at 2,958.1. S&P 500 surged 1.9% to end at 1, 386.0.
Nikkei 225 index is trading 0.6% higher at 8,619.8.

FTSE 100 gained 1.0% to close at 5,627.2.
FTSEurofirst 300 index added 1.3% to 1,056.5.

In Asia, crude oil for September delivery is trading 0.7% or $0.62 higher at $90.75 per barrel.
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5714, 0.1% higher against the EUR at €1.2788, and 0.4% lower against the JPY at ¥123.15.

US Market Snapshot
US markets rose sharply on Friday, as GDP data for the second quarter of 2012 matched market expectations and as Eurozone fears eased, amid signs of actions by the European leaders to address the region’s debt troubles. Hopes of further stimulus from the Federal Reserve and the ECB also underpinned the gains. Pharmaceutical company, Merck rallied 4.1%, as its second-quarter earnings surpassed market estimates. Amazon.com jumped 7.9%, as its second-quarter operating income exceeded the past company guidance, while Expedia, up 20.1%, also benefited from its better-than-expected second quarter results. Chevron added 0.9%, as its second quarter earnings topped expectations. Financials, American Express, Travelers, Bank of America and JP Morgan Chase rallied between 1.3% and 3.0%, amid news that German and French leaders had made a pledge to protect the Eurozone at all costs.

DJIA soared 1.5% to settle at 13,075.7. NASDAQ jumped 2.2% to close at 2,958.1. S&P 500 surged 1.9% to end at 1, 386.0.

Asian Market Snapshot
Asian stock markets are trading higher this morning, amid hopes that the Federal Reserve and the ECB would adopt dovish monetary policies to stimulate growth and on optimism that the European lawmakers would come up with solid measures to support the euro. In Japan, Fujifilm Holdings, IHI Corp and Konica Minolta Holdings are trading higher, following their upbeat first-quarter results. In Hong-Kong, shares of HSBC Holdings gained, ahead of its quarterly earnings results, scheduled to be released later in the day. Bank of China and China Construction Bank paced gains, as risk sentiment improved across the board. In South Korea, Samsung Heavy Industries and Hyundai Heavy Industries climbed.

Nikkei 225 index is trading 0.6% higher at 8,619.8. Kospi index is trading 0.8% higher, at 1,844.0. Hang Seng index is trading 1.4% higher, at 19,537.2.

UK Market Snapshot
UK markets rallied on Friday, as reports surfaced that the ECB may buy Spanish and Italian bonds and after US economic data marginally beat market expectations. Barclays jumped 8.7% and emerged as the top gainer in the FTSE 100 index, as it posted forecast-beating half-year profits, while Lloyds Banking Group gained 3.7%, boosted by favourable comments from RBC and UBS. Miners, BHP Billiton, ENRC, Rio Tinto and Vedanta Resources rallied between 1.7% and 3.1%, tracking a rise in metal prices. SABMiller rose 1.4%, after S&P Equity Research upgraded its rating on the stock to “Hold” from “Sell” and increased its target price for the stock.  Commodities bellwether, Glencore International rose 1.6%, as it inched closer to completion of its £3.9 billion takeover of Canadian agricultural grain handler, Viterra, following approval by Australian authorities.

FTSE 100 gained 1.0% to close at 5,627.2, while FTSE 250 surged 1.3% to end at 11,179.0.

European Market Snapshot
Other European markets closed higher on Friday, as investors speculated that the ECB would announce fresh measures to reduce Italy and Spain’s borrowing costs, following upbeat comments from ECB President Mario Draghi, French President Fran├žois Hollande and German Chancellor Angela Merkel, who all pledged to safeguard the Eurozone. Daimler added 2.8%, after it reported a 10.0% jump in its second-quarter sales. Amongst other automakers, Renault, BMW, Peugeot and Volkswagen advanced between 0.4% and 6.4%. Banking stocks, Societe Generale, BNP Paribas, Deutsche Bank and Commerzbank jumped between 1.8% and 6.1%, as risk appetite among investors increased. European Aeronautic Defence & Space gained 5.7%, after it revealed stronger-than-expected second-quarter earnings.

FTSEurofirst 300 index added 1.3% to 1,056.5. German DAX Xetra 30 rose 1.6% to 6,689.4. French CAC-40 closed 2.3% higher, at 3,280.2

Commodities
In Asia, crude oil for September delivery is trading 0.7% or $0.62 higher at $90.75 per barrel. On Friday, crude oil for September delivery gained 0.8% or $0.74 to $90.13 per barrel, amid rising hopes that the European Central Bank (ECB) and the US Federal Reserve would take further steps to support economic growth. However, gains were capped, after a report indicated that US economic growth slowed in the second-quarter of 2012.

Gold for immediate delivery is trading 0.1% lower today, at $1,621.20 per ounce. Gold for August delivery settled up 0.2% or $2.90 at $1,618 per ounce on Friday, amid optimism of more stimulus measures from the ECB and Federal Reserve. However, gains were limited, as the dollar managed to claw back some of its losses against the euro and the yen.

Currencies
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5714, 0.1% higher against the EUR at €1.2788, and 0.4% lower against the JPY at ¥123.15.

The EUR is trading 0.2% lower against the USD at $1.2288 and 0.5% down against the JPY at ¥96.30, ahead of a report due today which is expected to show that consumer confidence in the Eurozone dropped in July. The EUR also fell, amid concerns that a report due tomorrow might show that unemployment in the region climbed to a record in July, and after Moody’s Investors Service, in its Credit Outlook, indicated that the ECB’s commitment to preserve euro is not sufficient to resolve the sovereign debt crisis.
The Soutine Korean WON is trading lower against the USD, after data showed that South Korean manufacturers’ confidence fell to the lowest level in more than three years in July.

On Friday, the EUR ended higher against the USD, after German Chancellor Angela Merkel and French President Francois Hollande, in a joint statement, stated that they would do “everything” necessary to protect the European common currency. The EUR also rose, after the French daily Le Monde reported that the ECB and Eurozone governments would be buying Spanish and Italian debt. However, gains were capped, after the German central bank stated that it remained critical of the ECB's bond-buying program and reiterated its opposition to giving a banking license to the Eurozone's bailout fund.
The USD ended lower against the EUR and the GBP, after a government report showed that US economic growth slowed in the second-quarter of 2012, boosting speculation of further monetary easing by the Federal Reserve.

Friday, 27 July 2012

July 27, 2012 Financial Market Summary

DJIA advanced 1.7% to settle at 12,887.9. NASDAQ added 1.4% to close at 2,893.3. S&P 500 climbed 1.7% to settle at 1,360.0.
Nikkei 225 index is trading 1.4% higher at 8,561.7.
FTSE 100 added 1.4%, to settle at 5,573.2.
FTSEurofirst 300 index rose 2.4% to 1,042.6.
In Asia, crude oil for September delivery is trading 0.2% or $0.17 higher at $89.56 per barrel.
At 0400 BST today, the GBP is trading flat against the USD at $1.5682, 0.1% lower against the EUR at €1.2760, and 0.1% lower against the JPY at ¥122.66.
US Market Snapshot
US markets closed higher yesterday, following favourable comments from the ECB President Mario Draghi and after US data showed new claims for jobless benefits fell last week and durable goods orders came in better-than-expected in June. MetroPCS Communications rallied 36.8%, after it reported a sharp rise in its second-quarter earnings. Exxon Mobil added 1.5%, as it posted stronger-than-expected second-quarter profit. Visa gained 3.7%, as the company reported fiscal third-quarter profit that surpassed analyst estimates led by higher card spending. 3M climbed 2.1%, on better-than-expected second-quarter earnings. PulteGroup soared 18.4%, as a jump in orders helped the company register higher-than-expected second quarter earnings.
DJIA advanced 1.7% to settle at 12,887.9. NASDAQ added 1.4% to close at 2,893.3. S&P 500 climbed 1.7% to settle at 1,360.0.
Asian Market Snapshot
Asian markets are trading sharply higher this morning, taking cues from overnight gains on Wall Street and as ECB President Mario Draghi’s vowed to preserve the euro, lifting market sentiment. In Japan, exporters, Mazda Motor, Sony Corp and Pioneer Corp paced gains, as the yen weakened against the euro. Toshiba traded higher after a Nikkei report that the company’s first-quarter operating profit is expected to more than double on strong performance at its infrastructure segment. In Hong Kong, banks, Industrial Commercial Bank of China and China Construction Bank Corp gained values, amid improved risk appetite among investors. In South Korea, Samsung Electronics traded higher, following upbeat second-quarter results, while peer LG Display traded higher after it posted better-than-expected second-quarter results yesterday.
Nikkei 225 index is trading 1.4% higher at 8,561.7. Hang Seng index is trading 1.9% higher at 19,255.9. Kospi index is trading 2.2% higher at 1,820.8.
UK Market Snapshot
UK markets closed higher yesterday, after European Central Bank’s (ECB) President Mario Draghi pledged to take measures to safeguard the euro and address high yields on sovereign debt. Miners, Polymetal International, Vedanta Resources, Kazakhmys and Rio Tinto surged between 2.2% and 7.6%, tracking a rise in base metal prices. Unilever rose 5.4%, after posting second-quarter sales that exceeded market expectations. Rolls-Royce gained 6.7%, as it posted robust second-quarter results, and forecasted "good" growth for the whole year. SABMiller advanced 3.9%, as its first-quarter sales surpassed analysts’ estimates. Compass Group climbed 4.5%, as emerging market contracts helped boost the company’s third-quarter revenues. Banking sector stocks, Royal Bank of Scotland, Barclays, Standard Chartered and HSBC advanced between 1.6% and 2.2%, following upbeat comments from ECB President Mario Draghi. 
FTSE 100 added 1.4%, to settle at 5,573.2. FTSE 250 climbed 1.5%, to close at 11,039.5.
European Market Snapshot
Other European markets closed sharply higher yesterday, with the FTSEurofirst 300 index snapping its four-day losing streak, after ECB President Mario Draghi pledged that policy makers would do whatever is needed to preserve the euro and act on surging bond yields. Banks, Banco Santander, Societe Generale and Deutsche Bank climbed between 5.0% and 10.7%, as risk appetite improved among investors. Total, Technip and ThyssenKrupp gained between 2.3% and 3.7%, on the back of higher commodity prices. France Telecom advanced 6.4%, after the company reported a smaller-than-expected decline in its first-half revenue. ABB rose 5.2%, after the company issued an upbeat short-term outlook as orders increased in China.
FTSEurofirst 300 index rose 2.4% to 1,042.6. German DAX Xetra 30 rose 2.8% to 6,583.0. French CAC-40 closed 4.1% higher at 3,207.1..
Commodities
In Asia, crude oil for September delivery is trading 0.2% or $0.17 higher at $89.56 per barrel. Yesterday, crude oil for September delivery gained 0.5% or $0.42 to $89.39 per barrel, as better-than-expected US durable goods and jobless claims data eased concern over slowing economic growth, and as the euro traded higher against the dollar, after European Central Bank (ECB) President Mario Draghi reiterated his commitment to preserve the European common currency.
Gold for immediate delivery is trading 0.1% higher today, at $1,615.50 per ounce. Gold for August delivery settled up 0.4% or $7.00 at $1,615.10 per ounce yesterday, as the euro strengthened against the dollar following ECB President Mario Draghi’s comments and renewed hopes of an economic stimulus.
Currencies
At 0400 BST today, the GBP is trading flat against the USD at $1.5682, 0.1% lower against the EUR at €1.2760, and 0.1% lower against the JPY at ¥122.66.
The EUR is trading 0.1% higher against the USD at $1.2290, extending its previous session gains following ECB President Mario Draghi’s positive comment on the euro.
The USD fell, ahead of data which is expected to show that the US economy expanded at the slowest pace in a year in the second quarter, boosting speculation that the US Federal Reserve would implement a third round of quantitative easing.
The EUR is trading marginally lower against the JPY at ¥96.13.
The WON is trading higher against the USD, after a report revealed that South Korea’s current-account surplus widened to a record in June.
Earlier in the session, the JPY traded lower against most of its major counterparts, after data revealed that Japan’s consumer prices declined in June, spurring expectations of further monetary easing. Yesterday, the EUR ended sharply higher against the USD and the JPY, after European Central Bank President Mario Draghi stated that policy makers would do whatever is needed to preserve the European common currency, the euro. The GBP also closed higher against its peers, on optimism European policy makers would take measures to contain the region’s debt crisis, improving the outlook for the UK economy. The USD closed higher against the JPY, after reports indicated that US initial jobless claims fell more-than-expected last week and durable-goods orders rose in June.

Thursday, 26 July 2012

July 26, 2012 Financial Market Summary

DJIA added 0.5% to settle at 12,676.1, while the NASDAQ eased 0.3% to close at 2,854.2. S&P 500 slipped marginally to settle at 1,337.9.
Nikkei 225 index is trading 0.3% higher at 8,389.4.
FTSE 100 eased marginally to settle at 5,498.3.
FTSEurofirst 300 index fell 0.1% to 1,017.9.
In Asia, crude oil for September delivery is trading 0.3% or $0.28 lower at $88.69 per barrel.
At 0400 BST today, the GBP is trading flat against the USD at $1.5482, marginally lower against the EUR at €1.2750, and slightly lower against the JPY at ¥120.95.
US Market Snapshot
US markets closed mixed yesterday, as upbeat outlooks from industrial-related firms led the DJIA higher, while the S&P 500 index erased gains in the final hour of trading, dragged lower by losses in technology sector stocks and as an unexpected drop in new US homes in June from a two-year high, dented market sentiment. Industrials, Boeing and Caterpillar added 2.8% and 1.4%, respectively, after both companies raised their earnings forecast.   Apple declined 4.3%, as it posted weaker-than-expected third-quarter results. Homebuilders, Lennar, DR Horton and KB Home eased between 3.3% and 4.0%, after the Commerce Department reported that US new home sales tumbled in June. Netflix plunged 25.0%, after its CEO stated that summer Olympics might weigh down on new customer growth.
DJIA added 0.5% to settle at 12,676.1, while the NASDAQ eased 0.3% to close at 2,854.2. S&P 500 slipped marginally to settle at 1,337.9.
Asian Market Snapshot
Asian stock markets are trading higher this morning, amid increasing speculation that the US Federal Reserve might take further steps to boost economic growth following dismal US new home sales data. In Japan, Fanuc traded higher, after the company’s first-quarter earnings surpassed market expectations. Olympus paced gains, as Terumo proposed a merger with the company, in a bid to counter Sony’s plan to strike a deal. In Hong-Kong, property stocks, China SCE Property Holdings and China Resources Land gain values. In South Korea, LG Electronics traded higher, after it posted a 47% increase in net profit, while LG Display gained values, after the company revealed its plans to invest $1 billion on phone displays.
Nikkei 225 index is trading 0.3% higher at 8,389.4. Hang Seng index is trading 0.2% higher at 18,915.1. Kospi index is trading 0.4% higher at 1,777.0.
UK Market Snapshot
UK markets closed lower yesterday, after UK GDP shrank the most since 2009 in the second quarter, raising concerns about the pace of economic recovery. Weak corporate earnings also dented market sentiment. Tullow Oil slumped 6.3%, despite reporting robust second-quarter results, as it lowered estimated reserves for its various fields offshore Ghana and raised expected costs associated with its Lake Albert field in Uganda. Johnson Matthey declined 1.7%, as it reported downbeat first-quarter results. GlaxoSmithKline shed 1.3%, after the company posted weaker-than-anticipated second-quarter earnings. However, Royal Bank of Scotland, Lloyds Banking, HSBC and Standard Chartered climbed between 0.9% and 3.5%, as risk appetite increased among investors following some positive developments in the euro region. ARM Holdings rallied 8.6%, as its second-quarter results came in better-than-expected.
FTSE 100 eased marginally to settle at 5,498.3. FTSE 250 slipped 0.1%, to close at 10,873.4.
European Market Snapshot
Other European markets closed mostly higher yesterday, as a European Central Bank (ECB) member Ewald Nowotny signalled support for giving the European Union’s rescue fund, the European Stability Mechanism, a banking license. However, gains were capped, after reports showed that German business confidence fell more-than-expected in July and US new house sales unexpectedly dropped in June. Automaker, Daimler climbed 4.1%, after it posted a rise in its second-quarter sales and affirmed its full-year earnings outlook, while Peugeot fell 2.5%, after the company presented plans to raise capital, as it reported a loss in the first-half of the year. Siemens added 0.5%, after it bagged an order for three power plants in South Korea. Deutsche Bank slipped 4.1%, as its second-quarter earnings fell short of market expectations.
FTSEurofirst 300 index fell 0.1% to 1,017.9. German DAX Xetra 30 rose 0.3% to 6,406.5. French CAC-40 closed 0.2% higher at 3,081.7.
Commodities
In Asia, crude oil for September delivery is trading 0.3% or $0.28 lower at $88.69 per barrel. Yesterday, crude oil for September delivery gained 0.5% or $0.47 in the final hours of trading to settle at $88.97 per barrel, tracking some gains in equity markets, and as the dollar traded lower against the euro, increasing the demand for the commodities as an alternative investment. Escalating concerns about Middle East also supported oil prices. However, earlier in the session, oil prices were weighed down on report from the Energy Information Administration that US crude oil inventories had risen by 2.7 million barrels for the week ended 20 July.
Gold for immediate delivery is trading 0.1% higher today, at $1,604.40 per ounce. Gold for August delivery settled up 2.0% or $31.90 at $1,608.10 per ounce yesterday, as comments from an ECB council member increased speculation that European leaders might take additional measures to contain the region’s debt crisis, pushing the euro higher against the dollar.
Currencies
At 0400 BST today, the GBP is trading flat against the USD at $1.5482, marginally lower against the EUR at €1.2750, and slightly lower against the JPY at ¥120.95.
The EUR is trading marginally higher against the USD at $1.2143. The EUR is trading slightly higher against the JPY at ¥94.86. The EUR is trading flat against its peers before data that is expected to show retail sales in Italy dropped and Spain’s unemployment rate climbed.
The JPY is trading higher against its major peers, as intensifying worries over the pace of economic recovery spurred demand for the safe haven currency.
The USD is trading lower against the JPY, ahead of reports which are expected to show a slowdown in US durable-goods orders and pending home sales for June, boosting speculations of further monetary easing by the US Federal Reserve.
Yesterday, the EUR ended higher against the USD, after an ECB council member Ewald Nowotny signalled support to leverage the Eurozone’s bailout fund by allowing it to apply for a banking license. However, gains were capped following dismal German business confidence data for July. The GBP closed lower against the EUR and the USD, after the UK Office for National Statistics reported a higher-than-expected drop in UK second-quarter gross domestic product, spurring expectations of more monetary stimulus and less fiscal tightening. The AUD ended higher against the USD, after a report revealed that Australia’s consumer prices rose in line with market expectations in the second-quarter of 2012. The NZD closed higher against the USD, after New Zealand’s Reserve Bank left its official cash rate at 2.5% and stated that the economy should grow “modestly”.

Wednesday, 25 July 2012

July 25, 2012 Financial Market Summary

DJIA fell 0.8% to settle at 12,617.3. NASDAQ shed 0.9% to close at 2,863.0. S&P 500 slipped 0.9% to end at 1,338.3.
Nikkei 225 index is trading 1.0% lower at 8,402.9.
FTSE 100 shed 0.6% to close at 5,499.2.
FTSEurofirst 300 index eased 0.6% to 1,018.6.
In Asia, crude oil for September delivery is trading 0.2% or $0.20 lower at $88.30 per barrel.
Gold for immediate delivery is trading 0.2% higher today, at $1,583.45 per ounce.
US Market Snapshot
US markets fell yesterday, with the DJIA index logging its third-consecutive triple-digit loss, after an index of US manufacturing expanded at its slowest pace since late 2010 in July and amid concern Europe’s debt crisis is worsening and disappointing US corporate earnings reports. However, losses were pared amid speculation the Federal Reserve might act to boost growth. United Parcel Service declined 4.6%, as its second quarter results trailed market estimates and after it cut its 2012 outlook. Cisco Systems dropped 5.9%, amid concern about possible slowdown in sales and threat from VMware Inc.’s planned purchase of Nicira. DuPont declined 2.0%, as it issued a cautious outlook. AT&T dropped 2.1%, amid sluggish sales growth. Whirlpool dropped 7.5%, as its second-quarter profits came in below market expectations.
DJIA fell 0.8% to settle at 12,617.3. NASDAQ shed 0.9% to close at 2,863.0. S&P 500 slipped 0.9% to end at 1,338.3.
Asian Market Snapshot
Asian markets are trading lower this morning, amid concern that Greece might need more debt restructuring and following bearish comments from the IMF on China’s economy. Disappointing US corporate earnings also weighed on market sentiment. In Japan, Toshiba which supplies chips for Apple, slumped after sales of Apple's iPhones trailed market expectations. Canon and Nikon paced losses, as the yen firmed against the euro. In Hong-Kong, Cheung Kong Holdings dropped on report that it is leading a consortium to buy UK gas distribution assets. Hutchison Whampoa, with significant exposure to Europe traded lower. In South Korea, POSCO traded lower after it reported a sharp drop in its quarterly operating profit.
Nikkei 225 index is trading 1.0% lower at 8,402.9. Hang Seng index is trading 0.5% lower at 18,814.5. Kospi index is trading 0.8% lower at 1,778.9.
UK Market Snapshot
UK markets slid yesterday, after Moody's Investors Service cut Germany’s credit outlook and after a US manufacturing gauge contracted more-than-estimated in July. Royal Bank of Scotland, HSBC, Barclays and Standard Chartered lost between 0.7% and 2.0%, as risk appetite decreased amongst investors. International Airlines Group, slated to report its second quarter results next week, slipped 2.2%, as Citigroup forecasted a sharp drop in the company’s profits. Vodafone lost 1.0%, after its Dutch peer Royal KPN reported a drop in its second quarter earnings and cut its dividend.  Glencore International declined 2.3%, amid profit booking by investors. Interdealer broker ICAP fell 2.0%, on concerns over falling trading volumes. BP eased 0.6%, as it began discussion with Rosneft to sell its stake in Russia’s TNK-BP. Vedanta Resources, Anglo American and Rio Tinto dropped between 0.3% and 1.2%, amid fears of shrinking metal demand.
FTSE 100 shed 0.6% to close at 5,499.2, while FTSE 250 edged down 0.1% to end at 10,885.9.
European Market Snapshot
Other European markets closed lower yesterday, amid persistent worries that Spain might require a full sovereign bailout, and after Germany’s credit outlook was lowered by Moody’s Investors Service. Financial stocks, Banco Santander and BBVA slipped 4.5% and 4.2%, respectively, as borrowing costs continued to surge in Spain. STMicroelectronics declined 3.7%, after the company forecasted downbeat third-quarter results, amid a slowdown in demand. ProSiebenSat.1 Media dropped 2.5%, after Barclays downgraded its recommendation on the stock to “Equal Weight” from “Overweight”. Royal KPN fell 7.3%, after the company reported a drop in its second-quarter earnings and slashed its dividend. However, Software surged 10.8%, after the company posted robust second-quarter results.
FTSEurofirst 300 index eased 0.6% to 1,018.6. German DAX Xetra 30 fell 0.5% to 6,390.4. French CAC-40 closed 0.9 % lower at 3,074.7.
Commodities
In Asia, crude oil for September delivery is trading 0.2% or $0.20 lower at $88.30 per barrel. Yesterday, crude oil for September delivery gained 0.4% or $0.36 to $88.50 per barrel, as unrest in Syria intensified concerns over supply disruption from Middle East region and after a report revealed that China’s HSBC manufacturing purchasing managers’ index rose to its highest in five months in July. Later in the day, the American Petroleum Institute reported that US crude oil inventories increased for the first time in four weeks by 1.35 million barrels last week.
Gold for immediate delivery is trading 0.2% higher today, at $1,583.45 per ounce. Gold for August delivery settled down 0.1% or $1.20 at $1,576.20 per ounce yesterday, as the dollar traded higher against the euro after Moody’s Investors Service lowered its outlook on Germany, Netherlands and Luxembourg’s triple-A rating to ‘Negative’ from ‘Stable’.
Currencies
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5506, flat against the EUR at €1.2848, and 0.1% higher against the JPY at ¥121.16.
The EUR is trading marginally higher against the USD at $1.2069. However, earlier in the session the EUR traded lower against the USD, ahead of a report which is expected to show that German business confidence fell to the lowest level since 2010 in July and after Moody’s Investors Service, in a statement today, revealed that it had also lowered the rating outlook for the European Financial Stability Facility (EFSF) to ‘Negative’ from ‘Stable’.
 The EUR is trading 0.1% higher against the JPY at ¥94.30. Earlier in the session, the JPY traded higher against most of its major peers, after Japan unexpectedly posted a trade surplus in June.
The NZD is trading lower against the USD, even after a report indicated that New Zealand’s annual trade deficit unexpectedly fell in June.
Yesterday, the EUR closed lower against the USD, after a report indicated that a downturn in the eurozone private sector continued in July. The EUR also fell, after a report showed that European Union officials believed Greece might not be able to pay its debt and might require additional debt restructuring, and after Moody’s Investors Service cut its triple-A credit ratings outlook for Germany, the Netherlands and Luxembourg to ‘Negative’ from ‘Stable’. The GBP ended lower against the USD, after a report indicated that UK BBA mortgage approvals fell unexpectedly in June. The USD and the JPY ended higher against their major counterparts, as mounting worries over European debt crisis spurred demand for the safe haven currencies.

Tuesday, 24 July 2012

July 24, 2012 Financial Market Summary

DJIA fell 0.8% to settle at 12,721.5. NASDAQ tumbled 1.2% to close at 2,890.2. S&P 500 shed 0.9% to end at 1,350.5.
Nikkei 225 index is trading 0.4% lower at 8,472.6.
FTSE 100 fell 2.1%, to settle at 5,533.9.
FTSEurofirst 300 index dropped 2.4 % to 1,024.3.
In Asia, crude oil for September delivery is trading marginally higher at $88.18 per barrel.
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5519, slightly higher against the EUR at €1.2802, and marginally lower against the JPY at ¥121.48.
US Market Snapshot
US markets fell yesterday, amid concerns that Spain might need a sovereign bailout after the Spanish region of Murcia looked set to request government bailout funds and after a Chinese central bank adviser opined that China’s economic growth might contract further. McDonald's slid 2.9%, as it second-quarter results trailed market expectation. Exxon Mobil and Chevron fell 0.9% and 1.1%, respectively, tracking a drop in crude oil prices. Financial stocks, Citigroup and PNC Financial Services lost 2.1% and 2.6%, respectively, on Spanish debt concern and on reports that the IMF would halt aid to Greece. Alcoa slid 1.5%, amid concern about a global slowdown. Pharmaceutical company, Akorn slumped 7.9%, after Deutsche Bank reduced its rating on the stock to “Hold” from “Buy” and lowered estimates for 2013 and 2014.
DJIA fell 0.8% to settle at 12,721.5. NASDAQ tumbled 1.2% to close at 2,890.2. S&P 500 shed 0.9% to end at 1,350.5.
Asian Market Snapshot
Asian markets are trading lower this morning, as Moody's Investors Service trimmed its outlook on Germany, the Netherlands and Luxembourg due to mounting uncertainties from the eurozone debt crisis. In Japan, Sharp traded lower, amid news that the firm might suffer a higher-than-expected loss in the April-June quarter as its LCD and solar businesses continue to decline. Toshiba dropped amid concerns about its earnings and after reports stated that the company plans to cut NAND flash memory chip output by 30%. In Hong-Kong, morning trading was suspended due to extreme weather. In South- Korea, Halla Climate Control paced losses, after South Korea's National Pension Service rejected an offer from US-based Visteon’s to acquire 30% of Halla Climate Control.
Nikkei 225 index is trading 0.4% lower at 8,472.6. Kospi index is trading 0.1% lower at 1,787.0. Trading was suspended in Hong-Kong.
UK Market Snapshot
UK markets ended lower yesterday, as renewed concern about Spain and a potential Greek default, spooked market sentiment. Evraz slumped 7.0%, following bearish comments from Morgan Stanley. Aviva slumped 6.6%, amid doubts whether its disposal plan alone would be enough to turnaround the company. African Barrick Gold tumbled 16.0%, after the company reported a drop in first-half profits, on lower production and higher costs. Miners, Vedanta Resources, ENRC, Kazakhmys and Antofagasta declined between 3.5% and 5.2%, as base metal prices slumped, after a Chinese central bank adviser stated that the nation’s economy might cool further in the current quarter. Banking stocks, Barclays, HSBC Holdings, Royal Bank of Scotland and Standard Chartered plunged between 2.4% and 4.2%, spooked by concerns over debt problems in Greece and Spain.
FTSE 100 fell 2.1%, to settle at 5,533.9. FTSE 250 shed 2.4%, to close at 10,896.9.
European Market Snapshot
Other European markets closed lower yesterday, as rising borrowing costs in the euro area renewed concern that Spain would seek a sovereign bailout and amid fears that Greece would default. Banking stocks, Commerzbank, Credit Agricole, BNP Paribas and Deutsche Bank plunged between 4.6% and 6.1%, as risk appetite decreased among investors. Groupe Eurotunnel slumped 5.8%, after the company posted weaker-than-anticipated first-half earnings. Oil producers, Technip and Total fell 3.9% and 1.8% respectively, tracking a drop in crude oil prices. Danone declined 3.2%, after Societe Generale downgraded its rating on the stock to “Hold” from “Buy”. Wereldhave tumbled 13.4%, after the company abandoned its dividend targets for this year and next.
FTSEurofirst 300 index dropped 2.4 % to 1,024.3. German DAX Xetra 30 shed 3.2% to 6,419.3. French CAC-40 closed 2.9% lower at 3,101.5.
Commodities
In Asia, crude oil for September delivery is trading marginally higher at $88.18 per barrel. Yesterday, crude oil for September delivery declined 4.0% or $3.69 to $88.14 per barrel, amid worries over demand outlook, as eurozone debt crisis intensified on fears that Spain would need a major bailout and ahead of the meeting between the European Commission, the European Central Bank (ECB) and the International Monetary Fund to determine the fiscal position of Greece. Oil prices also fell, after a Chinese central bank adviser stated that the nation’s economy might cool further in the current quarter.
Gold for immediate delivery is trading 0.1% lower today, at $1,576.05 per ounce. Gold for August delivery settled down 0.3% or $5.40 at $1,577.40 per ounce yesterday, as the dollar traded higher against the euro, amid increasing worries about finances in Spain and Greece and following a surge in Spanish and Italian bond yields.
Currencies
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5519, slightly higher against the EUR at €1.2802, and marginally lower against the JPY at ¥121.48.
The EUR is trading marginally lower against the USD at $1.2122. However, gains in the USD were limited, before data due to release this week, which might show that US economic growth slowed in the second quarter of 2012, prompting speculation that the US Federal Reserve would ease monetary policy further.
The EUR is trading slightly lower against the JPY at ¥94.88. The JPY is trading higher against its major counterparts, as escalating worries over the European debt turmoil spurred demand for the safe haven currency. The JPY traded higher even after Japan’s Finance Minister Jun Azumi reiterated that he is ready to take decisive action on the local currency if needed.
The EUR is trading lower against its major peers, after Moody's Investors Service lowered its outlook for Germany, the Netherlands and Luxembourg to ‘Negative’ from ‘Stable’, due to mounting uncertainties from the eurozone debt crisis.
The AUD is trading higher against the USD, after a report revealed that Chinese manufacturing PMI rose in July.
Yesterday, the EUR ended lower against its major peers, following a surge in Spanish borrowing costs as Catalonia joined a list of Spanish regions that might request aid from the central government. The EUR also fell, on news that the International Monetary Fund was set to stop aid for Greece and after a report showed that eurozone consumer confidence dropped to a three year low in July.