DJIA
fell 0.7% to settle at 12,653.1. NASDAQ slumped 1.0% to close at 2,902.3.
S&P 500 shed 0.8% to end at 1,341.5.
Nikkei
225 index is trading 0.4% lower at 8,825.2.
FTSE
100 gained 0.7% to close at 5,664.1.
FTSEurofirst
300 index rose 0.9% to 1,039.1.
In
Asia, crude oil for August delivery is trading 0.6% or $0.53 higher at $84.44
per barrel.
At
0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5527, flat
against the EUR at €1.2662, and flat against the JPY at ¥123.16.
US Market
Snapshot
US
markets dropped yesterday, amid concerns about corporate earnings. Advanced Micro Devices slumped 11.2%, after
the company reported an unexpected drop in second quarter sales, while Cummins
fell 8.9%, as it cut its full year revenue forecast. Applied Materials fell
2.7% after it reduced its fiscal 2012 profit and sales forecasts. Alcoa tumbled
4.1%, a day after it reported a loss in its second-quarter. JC Penney dropped
5.8%, following bearish comments from Credit Suisse. Research In Motion fell
5.0%, after its CEO Thorsten Heins failed to reassure shareholders gathered at
the company’s annual meeting. Mako Surgical plunged 43.1%, after the company
posted lower-than-expected sales of its surgical robots for the second quarter
in a row.
DJIA
fell 0.7% to settle at 12,653.1. NASDAQ slumped 1.0% to close at 2,902.3.
S&P 500 shed 0.8% to end at 1,341.5.
Asian Market
Snapshot
Asian
markets are trading lower this morning, amid speculation that economic worries
related to Europe and China would dampen corporate earnings. In Japan,
Advantest Corp and Renesas Electronics traded lower, after their US peer
Applied Materials lowered its sales and profit forecasts citing weakness in
Europe, China and the personal-computer market. Sharp lost value, after the
company agreed to pay Dell and two other companies, to settle a lawsuit. In
Hong Kong, China Southern Airlines paced lower, after the company warned that
its first-half earnings might fall by more than half, amid slowing travel
demand and higher fuel prices. In South Korea, Samsung Electronics and SK Hynix
declined following weak forecasts from US chip-related firms, Applied Materials
and Advanced Micro Devices.
Nikkei
225 index is trading 0.4% lower at 8,825.2. Hong Kong index is trading 0.3%
lower, at 19,345.6, while the Kospi index is trading 0.4% lower, at 1,822.3.
UK Market
Snapshot
UK
markets advanced yesterday, led by gains in banking and energy sector stocks,
as an unexpected improvement in UK manufacturing data for May coupled with a
drop in Spanish bond yields buoyed market sentiment. BP and Royal Dutch Shell
advanced 1.1% and 1.2%, respectively, after the Norwegian government intervened
to avert an oil industry dispute in the country. Banks, HSBC Holdings, Royal
Bank of Scotland and Standard Chartered rallied between 0.9% and 1.9%, after
data revealed that UK goods trade deficit narrowed in May. Barclays rose 2.2%,
after its Chairman stated that its former CEO, Bob Diamond would forgo deferred
bonuses. Prudential advanced 3.3%, amid speculation that it might acquire
Aviva's insurance business in Malaysia. BAE Systems climbed 2.7%, following
positive comments from UBS.
FTSE
100 gained 0.7% to close at 5,664.1, while FTSE 250 advanced 0.7% to settle at
11,065.5.
European Market
Snapshot
Other
European markets closed higher yesterday, after reports revealed an unexpected
rise in the UK and Italy’s manufacturing output and as eurozone Finance
Ministers agreed to disburse €30 billion by the end of July as part of a €100
billion plan to strengthen the Spanish banking sector. ASML Holding climbed
8.6%, as Intel Corp agreed to invest as much as $4.1 billion in the company.
Technip advanced 3.0%, after the company bagged a subsea installation contract
worth about $61.4 million. Volkswagen, Renault and Daimler gained between 0.9%
and 1.8%, amid optimism over global demand outlook. Logitech International
rallied 4.3%, after it proposed a one-time dividend for this year. Statoil rose
1.9%, after the company announced that it would resume production at sites
affected by the strike.
FTSEurofirst
300 index rose 0.9% to 1,039.1. German DAX Xetra 30 gained 0.8% to 6,438.3. French
CAC-40 closed 0.6% higher at 3,175.4.
Commodities
In
Asia, crude oil for August delivery is trading 0.6% or $0.53 higher at $84.44
per barrel. Yesterday, crude oil for August delivery declined 2.4% or $2.08 to
end at $83.91 per barrel, after Norway ended a strike that threatened to halt
oil production and after a report from China showed a drop in the country’s net
crude imports in June. Crude oil also lost value, after the Energy Information
Administration lowered its global crude oil demand expectations for current
year and the next year.
Gold
for immediate delivery is trading 0.2% higher today, at $1,574.95 per ounce.
Gold for August delivery fell 0.6% or $9.30 to end at $1,579.80 per ounce
yesterday, as the dollar appreciated against its peers, after investors
preferred the safe haven appeal of the currency following lacklustre trade data
from China. The dollar also appreciated against the euro, after Italy’s prime
minister stated that the country might seek eurozone aid and on news that a
German court could take more than three months to rule on the country’s
participation in funding the European Stability Mechanism.
Currencies
At
0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5527, flat
against the EUR at €1.2662, and flat against the JPY at ¥123.16.
The
EUR is trading 0.1% higher against the USD at $1.2263, before the release of
the US Federal Reserve minutes of its 20 June meeting today.
The
EUR is trading flat against the JPY at ¥97.27. Earlier, the currency was
trading lower, after a German Court stated that a decision on whether to
suspend legislation for the Eurozone’s permanent bailout fund and fiscal treaty
could take months.
The
JPY is trading flat against the USD. Earlier, the currency was trading higher,
amid speculation that Japan’s central bank might not add further stimulus.
The
AUD is trading higher against the EUR, after the sentiment index for Australian
consumers advanced 3.7% in July to 99.1, the highest level since February, and
ahead of data due to be released that might show inflation slowed in Germany
and manufacturing activity stagnated in the eurozone.
Yesterday, the USD closed
higher against most of its major peers, as mounting concern about the European
sovereign debt crisis and lacklustre trade data from China, increased demand
for safe haven assets. The GBP ended higher against the EUR, following a report
that showed an unexpected surge in UK’s manufacturing activity in May. The GBP
closed lower against the USD, amid mounting speculation of further monetary
easing, after the Bank of England Governor, Mervyn King, stated that he saw no
“great signs” of a recovery in the country’s economy.
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