July 03, 2012 Financial Market Summary

DJIA edged down 0.1% to end at 12,871.4. NASDAQ rose 0.6% to settle at 2,951.2. S&P 500 ticked up 0.3% to close at 1,365.5.

Nikkei 225 index is trading 0.8% higher at 9,072.2.

FTSE 100 soared 1.2% to settle at 5,640.6.

FTSEurofirst 300 index gained 1.4% to 1,035.3.

In Asia, crude oil for August delivery is trading 0.7% or $0.57 higher at $84.32 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5699, 0.1% lower against the EUR at €1.2465, and 0.4% higher against the JPY at ¥125.18.

US Market Snapshot

US markets ended mostly higher yesterday, amid hopes of monetary stimulus from the Federal Reserve following dismal manufacturing data. Micron Technology advanced 3.8%, as it agreed to acquire troubled Japanese peer, Elpida Memory. Best Buy jumped 5.9%, on a weekend report that its former chairman and founder was expected to present a buyout offer for the electronics retailer to its board. EverBank rallied 4.4%, after it stated that it would acquire GE Capital's Business Property Lending Inc. division for $2.51 billion. Diabetes-drug maker, Amylin Pharmaceuticals soared 8.9%, as Bristol-Myers Squibbb agreed to acquire the firm for $5.3 billion and as several brokerages raised their price target on the stock. However, DuPont slipped 2.3%, after Jefferies lowered its rating on the company to “Hold” from “Buy”. Groupon tumbled 10.5%, after a broker cut its price target on the stock.

DJIA edged down 0.1% to end at 12,871.4. NASDAQ rose 0.6% to settle at 2,951.2. S&P 500 ticked up 0.3% to close at 1,365.5.

Asian Market Snapshot

Asian markets are trading higher this morning, amid hopes the US Fed would ease monetary measures to boost the US economy following downbeat domestic economic data and expectations of a rate cut from the European Central Bank. In Japan, Sumitomo Mitsui Financial Group gained value after Daiwa Securities Group upgraded the sector’s rating. In Hong Kong, Tencent Holdings traded higher after Micron Technology agreed to buy Elpida Memory. In South Korea, Hyundai Heavy Industries extended gains after it bagged a $1.2 billion contract to build 10 container vessels for a European client.

Nikkei 225 index is trading 0.8% higher at 9,072.2. Hang Seng index is trading 1.6% higher at 19,757.0, while the Kospi index is trading 0.9% higher, at 1,868.0.

UK Market Snapshot

UK markets closed higher yesterday, with the FTSE 100 hitting its highest level in two months, as manufacturing PMI for Britain came in higher-than-expected in June. Barclays rallied 3.4%, as its chairman stepped down following last week’s settlement of an investigation into manipulation of benchmark interest rates and as Investec reiterated its “Buy” rating on the stock. Aviva, the top gainer on the FTSE 100 index, rallied 3.7%, on news the insurer has considered selling or closing as many as 15 of its 58 divisions. AstraZeneca gained 1.0%, after it partnered with US group Bristol-Squibb Myers to pay around $7 billion for acquisition of diabetes specialist Amylin. Oilfield services group, Petrofac rose 3.5%, after Goldman Sachs raised its target price, retaining its “Buy” rating on the stock. Serco added 1.5%, as it signed an agreement to dispose of most of its operations in Germany in a transaction with the local management team.

FTSE 100 soared 1.2% to settle at 5,640.6, while FTSE 250 surged 1.5% to close at 11,093.5.

European Market Snapshot

Other European markets closed higher yesterday, amid optimism of a rate cut by the European Central Bank (ECB) this week after EU leaders announced a range of positive measures to recapitalize banking system in last week’s summit meeting. Banking sector stocks, Credit Agricole, Commerzbank and Deutsche Bank gained between 1.8% and 6.9%, as risk appetite improved amongst investors, while BNP Paribas climbed 4.3%, after CA Cheuvreux added the stock to its select list and upgraded its rating. Automakers, Daimler, Bayerische Motoren Werke and Renault added between 0.8% and 2.5%, amid optimism over global demand outlook. However, Linde dropped 1.7%, after the company agreed to acquire Lincare Holdings Inc. for about $3.8 billion.

FTSEurofirst 300 index gained 1.4% to 1,035.3. German DAX Xetra 30 rose 1.2% to 6,496.1. French CAC-40 closed 1.4% higher at 3,240.2.

Commodities

In Asia, crude oil for August delivery is trading 0.7% or $0.57 higher at $84.32 per barrel. Yesterday, crude oil for August delivery declined 1.4% or $1.21 to end at $83.75 per barrel, as downbeat manufacturing data from Europe, the US and China fuelled concerns about crude oil demand. However, declines were capped to some extent as Iran threatened to block tankers via the Strait of Hormuz in response to European Union's sanctions against purchase of Iranian crude oil.

Gold for immediate delivery is trading 0.3% higher today, at $1,600.22 per ounce. Gold for August delivery eased 0.4% or $6.50 to settle at $1,597.70 per ounce yesterday, as investors reassessed the economic situation in Europe and cut their exposure to the precious metal amid speculation whether EU’s plan to shore up its banking sector would have an immediate effect on Europe's banking crisis.

Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5699, 0.1% lower against the EUR at €1.2465, and 0.4% higher against the JPY at ¥125.18.

The EUR is trading 0.1% higher against the USD at $1.2594.

The EUR is trading 0.5% higher against the JPY at ¥100.43, as the demand for the high yielding currencies increased, after most of the Asian stocks traded higher.

The USD is trading lower against its major counterparts, amid speculation that the US Federal Reserve might introduce another round of quantitative easing to stimulate economic growth. The USD fell, ahead of a report which is expected to show that factory orders in the US stagnated in May.

Yesterday, the USD ended higher against the EUR, as weaker-than-expected US manufacturing data boosted the demand for safe-haven currency.

The EUR fell against the USD and GBP, after a report indicated that the unemployment rate in the Eurozone rose 11.1% in May, marking its highest level since January 1995. The EUR also fell, after Finland reportedly signalled that it would block efforts to use the Eurozone’s permanent rescue fund to buy distressed government debt.

The GBP ended lower against the USD, after reports showed that UK manufacturing output contracted and house prices stagnated in June, boosting speculation that the Bank of England would add stimulus measures this week.