Monday, 23 July 2012

July 23, 2012 Financial Market Summary

DJIA fell 0.9% to settle at 12,822.6. NASDAQ tumbled 1.4% to close at 2,925.3. S&P 500 slumped 1.0% to end at 1,362.7.
Nikkei 225 index is trading 1.5% lower at 8,542.7.
FTSE 100 fell 1.1 %, to settle at 5,651.8.
FTSEurofirst 300 index shed 1.5% to 1,049.0.
In Asia, crude oil for September delivery is trading 1.4% or $1.32 lower at $90.51 per barrel.
At 0400 BST today, the GBP is trading 0.3% lower against the USD at $1.5576, 0.1% higher against the EUR at €1.2858, and 0.6% lower against the JPY at ¥121.80.
US Market Snapshot
US markets slid on Friday, snapping a three-day winning streak, amid mounting concerns about Spain’s ability to control its debt problems and after a mixed bag of corporate earnings reports soured market sentiment. Microsoft fell 1.8%, as it posted its first quarterly loss in its 26 years as a public company. Freescale Semiconductor dropped 6.5%, after its third-quarter revenue forecast missed market expectations, while Advanced Micro Devices slipped 13.2%, after reporting dismal second-quarter results and forecast third-quarter revenue below market expectations. Chipotle Mexican Grill tumbled 21.5%, after it posted lower than expected revenue for second-quarter. Financials, JPMorgan Chase, Bank of America, Citigroup and Morgan Stanley declined between 1.6% and 3.6%, as risk appetite decreased amongst investors.
DJIA fell 0.9% to settle at 12,822.6. NASDAQ tumbled 1.4% to close at 2,925.3. S&P 500 slumped 1.0% to end at 1,362.7.
Asian Market Snapshot
Asian stock markets are trading lower this morning, after a Chinese central bank official warned of a slowdown and amid concerns about Greece and Spain. In Japan, Canon and Sony are trading lower, amid worries over their eurozone exposure. Tokyo Steel traded lower, after it projected an annual operating loss in the year to March. In Hong-Kong, Citic Pacific Ltd is trading lower, following a rise in its project cost in Western Australia. China Petroleum and Chemical paced declines as it indicated that its crude throughput in the first half of 2012 rose 1.13% over a year earlier, easing from a 3% expansion in 2011. In South Korea, exporters, Samsung Electronics and Hyundai Motor traded lower after government data on Saturday showed exports declined for the fourth time in six months.
Nikkei 225 index is trading 1.5% lower at 8,542.7. Hang Seng index is trading 2.4% lower at 19,173.7. Kospi index is trading 2.2% lower at 1,782.7.
UK Market Snapshot
UK markets closed lower on Friday, amid renewed concern about Spain’s debt problems, after the country cut its growth forecast and as the region of Valencia sought an emergency loan fund. Banking sector stocks, Royal Bank of Scotland, Barclays, HSBC and Lloyds Banking Group plunged between 1.0% and 3.6%, amid concern Spain’s debt crisis is worsening. Evraz fell 6.4%, after its US peer, Nucor posted weaker than expected earnings. Resolution slumped 5.4%, after the company cancelled plans to return £250 million to shareholders, citing economic and regulatory uncertainty. Segro dropped 3.0%, after Bank of America downgraded its rating on the stock to “Neutral” from “Buy”. Vodafone declined 1.7%, after it posted a weaker-than-expected slump in its quarterly revenue. London Stock Exchange Group eased 1.6%, after Singapore Exchange denied being in talks to acquire the company.
FTSE 100 fell 1.1 %, to settle at 5,651.8. FTSE 250 eased 0.7%, to close at 11,168.9.
European Market Snapshot
Other European markets closed lower on Friday, as rising concern over the impact of the banking sector bailout on public debt in Spain pushed Spanish 10-year government bond yields to euro-era highs. Banks, BBVA, Banco Santander and Intesa Sanpaolo plunged between 6.5% and 7.8% respectively, after the region of Valencia stated that it would apply to the government for help. Nokia slipped 7.4%, after Fitch Ratings cut the company’s debt rating by two notches as the company’s second-quarter loss widened. Utility stocks, RWE and Electricite de France dropped 6.0% and 5.7% respectively, after UBS downgraded its rating on both the stocks to “Sell” from ”Neutral”. Industrial and branded goods company, Orkla shed 3.8%, after the company reported weaker-than-anticipated second-quarter earnings.
FTSEurofirst 300 index shed 1.5% to 1,049.0. German DAX Xetra 30 declined 1.9% to 6,630.0. French CAC-40 closed 2.1% lower at 3,193.9.
Commodities
In Asia, crude oil for September delivery is trading 1.4% or $1.32 lower at $90.51 per barrel. On Friday, crude oil for August delivery dropped 1.3% or $1.22 to $91.44 per barrel, snapping its winning streak of seven consecutive sessions, as concerns about supply disruption from the Middle East eased and as the euro traded lower against the dollar, amid escalating concerns that an aid package for Spain’s ailing banking system would not stem the region’s financial crisis.
Gold for immediate delivery is trading 0.3% lower today, at $1,579.10 per ounce. Gold for August delivery settled up 0.2% or $2.40 at $1,582.80 per ounce on Friday, as investors’ mounting concerns about the pace of the economic recovery spurred investment in the precious metal as a safe haven. However, gains were capped, as the dollar traded higher against the euro.
Currencies
At 0400 BST today, the GBP is trading 0.3% lower against the USD at $1.5576, 0.1% higher against the EUR at €1.2858, and 0.6% lower against the JPY at ¥121.80.
The EUR is trading 0.4% lower against the USD at $1.2113.
The EUR is trading 0.7% lower against the JPY at ¥94.71.
The EUR is trading lower against its peers, amid renewed concern over eurozone debt crisis, and ahead of report which is expected to show that consumer confidence in the eurozone fell to three-year low in July.
The USD is trading higher against its major counterparts, as demand for safe haven increased.  However, gains in the USD were limited, ahead of data due this week which is expected to show US economic growth slowed in the second quarter, spurring speculation that the US Federal Reserve would ease monetary policy further.
On Friday, the EUR ended lower against its major peers, after Spain's Valencia region stated that it would seek central government help to repay its debts, intensifying speculation that Spain might not be able to avoid a full-scale international bailout.  However, the euro found little support, after euro-zone Finance Ministers formally backed an agreement to provide funding up to €100 billion to Spain. The CAD ended lower against the USD, after a report revealed that on monthly basis, Canadian consumer prices fell more-than-expected in June.

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