July 04, 2012 Financial Market Summary

DJIA added 0.6% to end at 12,943.8. NASDAQ rose 0.8% to settle at 2,976.1. S&P 500 gained 0.6% to close at 1,374.0.

Nikkei 225 index is trading 0.4% higher at 9,102.7.

FTSE 100 gained 0.8% to settle at 5,687.7. FTSEurofirst 300 index rose 1.0% to 1,046.1.

In Asia, crude oil for August delivery is trading 0.4% or $0.31 lower at $87.35 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5674, marginally higher against the EUR at €1.2449, and 0.2% lower against the JPY at ¥125.03.

US Market Snapshot

US markets rallied in a shortened pre-holiday session yesterday, as better-than-expected factory orders for May coupled with robust auto-sales data for June lifted market sentiment. Hopes of positive developments from global central banks to spur economic growth also underpinned gains. Ford and General Motors gained 2.2% and 5.6%, respectively, following upbeat June auto-sales data.  Alcoa and Caterpillar rose 3.2% and 3.3%, respectively, following positive economic data. Energy related stocks, Concho Resources, Anadarko Petroleum, Whiting Petroleum, Helmerich & Payne and EOG Resources advanced between 4.8% and 6.7%, after crude oil prices rose. Consolidated Communications Holdings added 4.2%, after Wells Fargo resumed coverage on the stock with an “Outperform” rating.

DJIA added 0.6% to end at 12,943.8. NASDAQ rose 0.8% to settle at 2,976.1. S&P 500 gained 0.6% to close at 1,374.0.

Asian Market Snapshot

Asian markets are trading higher this morning, following upbeat economic data in the US and on expectations of fresh stimulus measures by global central banks. In Japan, Renesas Electronics gained value, after the company announced that it would cut more than 5,000 jobs to help trim losses. Energy stocks, JX Holdings and Inpex traded higher, tracking overnight gains in crude oil prices. In Hong Kong, ICBC and Bank of China traded higher, on news that Central Huijin Investment has increased its stake in these companies. In South Korea, Hi-mart paced higher, on news that Lotte Shopping had been selected as preferred bidder for a controlling stake in the company. LG Display gained value after analysts forecasted a turnaround to profit for the company in the third quarter.

Nikkei 225 index is trading 0.4% higher at 9,102.7. Hong Kong index is trading 0.1% higher, at 19,762.4, while the Kospi index is trading 0.4% higher, at 1,874.4.

UK Market Snapshot

UK markets closed higher yesterday, extending gains into a third session, amid speculation that China would cut banks’ reserve requirements to boost its economy. Positive US factory data also supported the momentum. Vedanta Resources, the top gainer on the FTSE 100 index, rallied 6.1%, as Morgan Stanley reiterated its “Overweight” rating on the stock. BHP Billiton and Rio Tinto gained 2.2% and 3.2%, respectively, following broker upgrades. Kazakhmys and Antofagasta added 3.7% and 3.8%, respectively, tracking higher base metal prices. Engineering group, Meggitt advanced 1.9%, after UBS upgraded its rating on the stock to “Buy” from “Neutral”, while oil-services provider, Petrofac rallied 1.5%, as a broker raised its recommendation on the stock to “Buy” from “Hold”. BP, Royal Dutch Shell and BG Group added between 1.0% and 1.8%, as crude oil prices rose on fresh concerns over Iran.

FTSE 100 gained 0.8% to settle at 5,687.7, while FTSE 250 rose 0.9% to close at 11,189.8.

European Market Snapshot

Other European markets closed higher yesterday, amid expectations for further stimulus measures from global central banks and following a rebound in US factory orders. Among carmakers, Peugeot climbed 3.7%, after the company announced that it would cut its workforce by about 10% to reduce operational costs, while Volkswagen and BMW each rose 3.0%, following reports that US auto sales surpassed market expectations in June. Beiersdorf rose 2.2%, amid positive comments from a broker. Chemical maker, BASF advanced 2.3%, after the company agreed to buy US based cast elastomers producer ITWC. Swiss Re added 1.7%, after BlackRock announced that it would acquire Private Equity Partners from the company.

FTSEurofirst 300 index rose 1.0% to 1,046.1. German DAX Xetra 30 added 1.3% to 6,578.2. French CAC-40 closed 1.0% higher at 3,271.2.

Commodities

In Asia, crude oil for August delivery is trading 0.4% or $0.31 lower at $87.35 per barrel. Yesterday, crude oil for August delivery gained 4.7% or $3.91 to $87.66 per barrel, on renewed concerns about Iran’s nuclear program as it made its missile-test announcement and on optimism that central banks across the globe would add more stimuli to boost the economy.

Gold for immediate delivery is trading 0.2% lower today, at $1,617.43 per ounce. Gold for August delivery settled up 1.5% or $24.10 at $1,621.80 per ounce yesterday, as the dollar dropped against most major currencies following upbeat US factory orders data and on expectations of a rate cut by the European Central Bank.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5674, marginally higher against the EUR at €1.2449, and 0.2% lower against the JPY at ¥125.03.

The EUR is trading 0.1% lower against the USD at $1.2590.

The EUR is trading 0.2% lower against the JPY at ¥100.44.

The EUR is trading lower against the USD and the JPY, ahead of Spanish bonds auctions tomorrow and on speculation policy makers would cut interest rates at a meeting of the European Central Bank. The currency also traded lower ahead of a report which is expected to show that the Euro-zone services and manufacturing industries shrank in June.

The AUD closed higher against the USD, following positive comments on the economy by Reserve Bank of Australia Governor, Glenn Stevens and after retail sales in the country rose 0.5% MoM in May.

Yesterday, the USD closed lower against the EUR, as a rise in the US factory orders data in June dampened demand for the safe haven assets.

The CAD rose along with other riskier currencies, amid hopes that global central banks would add more stimuli to spur economic growth, decreasing the demand for safe haven assets.

The AUD ended higher against most of its major peers, after report showed that the number of permits granted to build or renovate houses and apartments in Australia rose by 23.7% in May from April.