Monday, 9 July 2012

July 09, 2012 Financial Market Summary


DJIA shed 1.0% to settle at 12,772.5. NASDAQ slumped 1.3% to close at 2,937.3. S&P 500 slipped 0.9% to end at 1,354.7.
Nikkei 225 index is trading 0.8% lower at 8,944.9.

FTSE 100 slid 0.5% to close at 5,662.6. FTSEurofirst 300 index dropped 1.0% to 1,033.8.
In Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $84.82 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5493, marginally lower against the EUR at €1.2606, and 0.1% higher against the JPY at ¥123.43.

US Market Snapshot

US markets retreated on Friday, as slower-than-expected growth in June pay-rolls reinforced concern that global growth was faltering. Moreover, worries over the health of eurozone continued to weigh on market sentiment, as yields on benchmark Spanish bonds hovered around 7%. Acme Packet and Informatica plummeted 14.5% and 27.6%, respectively, after they offered a disappointing guidance for their second quarter, amid a slowdown in global growth. Seagate Technology slid 0.5%, after it cut its revenue and gross margin expectations for its fourth-quarter. Freeport-McMoRan Copper & Gold and Alcoa slipped 1.3% and 2.2%, respectively, while Schlumberger dropped 1.4%, as commodity prices tumbled. Navistar International dropped 15.2%, after it stated that it would incur additional costs to get a crucial new engine approved by federal regulators.

DJIA shed 1.0% to settle at 12,772.5. NASDAQ fell 1.3% to close at 2,937.3. S&P 500 slipped 0.9% to 1,354.7.
Asian Market Snapshot
Asian markets are trading lower this morning, as disappointing US jobs data, higher-than-expected decline in Japanese machinery orders in May and bearish comments about China’s economy by Premier Wen Jiabao, weighed on market sentiment. In Japan, construction equipment maker, Komatsu lost value, as Japan’s machinery orders dropped in May. Tokyo Electron fell after JPMorgan Chase downgraded the stock to “Neutral” from “Overweight”. In Hong Kong, Angang Steel traded lower, after the company forecasted a net loss of around ¥1.976 billion in the first-half of 2012. In South Korea, computer SK C&C lost value, after the company was fined a $30.4 million by South Korea's Fair Trades Commission. Samsung Electronics lost values on worries about weakening demand.

Nikkei 225 index is trading 0.8% lower at 8,944.9. Hong Kong index is trading 1.5% lower, at 19,495.1, while the Kospi index is trading 1.3% lower, at 1,834.4..
UK Market Snapshot
UK markets closed lower on Friday, following disappointing US jobs report. Building materials group, CRH, with significant exposure to Poland, declined 5.2%, after data from the Polish Cement Association showed 20% YoY decline in sales in June. Anglo American, Rio Tinto and Kazakhmys dropped between 2.7% and 4.4%, as base metal prices slumped on renewed demand concerns. Fresnillo, Randgold Resources and Polymetal International slipped 1.1%, 1.4% and 3.3%, as precious metal prices dipped. Barclays slipped 2.1%, as Bernstein cut its rating from “Outperform” to “Market Perform”. Marks & Spencer declined 3.4%, after the Financial Times stated that the firm would report its worst quarterly trading in three years. Interdealer broker, ICAP slipped 3.8%, following a downgrade to “Hold” from “Buy” at Numis Securities.

FTSE 100 slid 0.5% to close at 5,662.6, while FTSE 250 also shed 0.5% to settle at 11,070.6.
European Market Snapshot
Other European markets closed lower on Friday, as sluggish US June payrolls data, surge in Spanish bond yields and downbeat comments on global growth outlook by the International Monetary Fund head Christine Lagarde overshadowed stronger-than-expected German industrial production data. BBVA sank 5.1%, after HSBC cut its recommendation on the stock to “Neutral” from “Overweight”, while Banco Popular Espanol declined 4.1%, after the same broker downgraded the stock to “Underweight” from “Neutral”. Peugeot tumbled 7.7%, after the company reported a decline in its first-half sales on an annual basis, while BMW lost 3.9%, after Morgan Stanley downgraded the stock to “Equal weight” from “Overweight”. Insurer, Delta Lloyd dropped 4.4%, after Aviva cut its stake in the company below 20.0%.

FTSEurofirst 300 index dropped 1.0% to 1,033.8. German DAX Xetra 30 fell 1.9% to 6,410.1. French CAC-40 closed 1.9% lower at 3,168.8.
Commodities
In Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $84.82 per barrel. On Friday, crude oil for August delivery dropped 3.2% or $2.77 to settle at $84.45 per barrel, amid fuel energy demand growth worries, after reports showed nonfarm payrolls for June grew less-than-expected. Crude oil prices were also under pressure as the dollar rose against the euro.

Gold for immediate delivery is trading 0.2% lower today, at $1,581.25 per ounce. Gold for August delivery lost 1.9% or $30.50 to settle at $1,578.90 per ounce on Friday, as the dollar rose against the major currencies, following downbeat US jobs data, lowering demand for the precious metal as an alternative investment.
Currencies
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5493, marginally lower against the EUR at €1.2606, and 0.1% higher against the JPY at ¥123.43.

The EUR is trading 0.2% higher against the USD at $1.2292 and 0.2% higher against the JPY at ¥97.92.  Earlier, the currency was trading lower, before European Central Bank President Mario Draghi addresses the European parliament today and as the regional Finance Ministers meet today to discuss implementation of the measures agreed on at the summit.

The JPY is trading lower against most of its major peers, after Japan reported smallest current-account surplus in May since at least 1985 and biggest fall in machinery orders in five years.
The AUD is trading lower against most of its major peers amid concerns China’s economy is faltering and as Asian equity markets fell, decreasing demand for higher-yielding currencies.
On Friday, the USD closed higher against the EUR, after a report showed weaker-than-expected jobs growth in the US in June, spurring demand for the safe haven assets.
The AUD and NZD ended lower against the USD, amid concerns about China’s economy following downbeat comments from the Chinese Premier, Wen Jiabao.

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