DJIA
added 0.5% to settle at 12,676.1, while the NASDAQ eased 0.3% to close at
2,854.2. S&P 500 slipped marginally to settle at 1,337.9.
Nikkei
225 index is trading 0.3% higher at 8,389.4.
FTSE
100 eased marginally to settle at 5,498.3.
FTSEurofirst
300 index fell 0.1% to 1,017.9.
In
Asia, crude oil for September delivery is trading 0.3% or $0.28 lower at $88.69
per barrel.
At
0400 BST today, the GBP is trading flat against the USD at $1.5482, marginally
lower against the EUR at €1.2750, and slightly lower against the JPY at ¥120.95.
US Market
Snapshot
US
markets closed mixed yesterday, as upbeat outlooks from industrial-related
firms led the DJIA higher, while the S&P 500 index erased gains in the
final hour of trading, dragged lower by losses in technology sector stocks and
as an unexpected drop in new US homes in June from a two-year high, dented
market sentiment. Industrials, Boeing and Caterpillar added 2.8% and 1.4%,
respectively, after both companies raised their earnings forecast. Apple declined 4.3%, as it posted
weaker-than-expected third-quarter results. Homebuilders, Lennar, DR Horton and
KB Home eased between 3.3% and 4.0%, after the Commerce Department reported
that US new home sales tumbled in June. Netflix plunged 25.0%, after its CEO
stated that summer Olympics might weigh down on new customer growth.
DJIA
added 0.5% to settle at 12,676.1, while the NASDAQ eased 0.3% to close at
2,854.2. S&P 500 slipped marginally to settle at 1,337.9.
Asian Market
Snapshot
Asian
stock markets are trading higher this morning, amid increasing speculation that
the US Federal Reserve might take further steps to boost economic growth
following dismal US new home sales data. In Japan, Fanuc traded higher, after
the company’s first-quarter earnings surpassed market expectations. Olympus
paced gains, as Terumo proposed a merger with the company, in a bid to counter
Sony’s plan to strike a deal. In Hong-Kong, property stocks, China SCE Property
Holdings and China Resources Land gain values. In South Korea, LG Electronics
traded higher, after it posted a 47% increase in net profit, while LG Display
gained values, after the company revealed its plans to invest $1 billion on
phone displays.
Nikkei
225 index is trading 0.3% higher at 8,389.4. Hang Seng index is trading 0.2%
higher at 18,915.1. Kospi index is trading 0.4% higher at 1,777.0.
UK Market
Snapshot
UK
markets closed lower yesterday, after UK GDP shrank the most since 2009 in the
second quarter, raising concerns about the pace of economic recovery. Weak
corporate earnings also dented market sentiment. Tullow Oil slumped 6.3%,
despite reporting robust second-quarter results, as it lowered estimated
reserves for its various fields offshore Ghana and raised expected costs
associated with its Lake Albert field in Uganda. Johnson Matthey declined 1.7%,
as it reported downbeat first-quarter results. GlaxoSmithKline shed 1.3%, after
the company posted weaker-than-anticipated second-quarter earnings. However,
Royal Bank of Scotland, Lloyds Banking, HSBC and Standard Chartered climbed
between 0.9% and 3.5%, as risk appetite increased among investors following
some positive developments in the euro region. ARM Holdings rallied 8.6%, as
its second-quarter results came in better-than-expected.
FTSE
100 eased marginally to settle at 5,498.3. FTSE 250 slipped 0.1%, to close at
10,873.4.
European Market
Snapshot
Other
European markets closed mostly higher yesterday, as a European Central Bank
(ECB) member Ewald Nowotny signalled support for giving the European Union’s
rescue fund, the European Stability Mechanism, a banking license. However,
gains were capped, after reports showed that German business confidence fell
more-than-expected in July and US new house sales unexpectedly dropped in June.
Automaker, Daimler climbed 4.1%, after it posted a rise in its second-quarter
sales and affirmed its full-year earnings outlook, while Peugeot fell 2.5%,
after the company presented plans to raise capital, as it reported a loss in
the first-half of the year. Siemens added 0.5%, after it bagged an order for
three power plants in South Korea. Deutsche Bank slipped 4.1%, as its
second-quarter earnings fell short of market expectations.
FTSEurofirst
300 index fell 0.1% to 1,017.9. German DAX Xetra 30 rose 0.3% to 6,406.5.
French CAC-40 closed 0.2% higher at 3,081.7.
Commodities
In
Asia, crude oil for September delivery is trading 0.3% or $0.28 lower at $88.69
per barrel. Yesterday, crude oil for September delivery gained 0.5% or $0.47 in
the final hours of trading to settle at $88.97 per barrel, tracking some gains
in equity markets, and as the dollar traded lower against the euro, increasing
the demand for the commodities as an alternative investment. Escalating
concerns about Middle East also supported oil prices. However, earlier in the
session, oil prices were weighed down on report from the Energy Information
Administration that US crude oil inventories had risen by 2.7 million barrels
for the week ended 20 July.
Gold
for immediate delivery is trading 0.1% higher today, at $1,604.40 per ounce.
Gold for August delivery settled up 2.0% or $31.90 at $1,608.10 per ounce
yesterday, as comments from an ECB council member increased speculation that
European leaders might take additional measures to contain the region’s debt
crisis, pushing the euro higher against the dollar.
Currencies
At
0400 BST today, the GBP is trading flat against the USD at $1.5482, marginally
lower against the EUR at €1.2750, and slightly lower against the JPY at
¥120.95.
The
EUR is trading marginally higher against the USD at $1.2143. The EUR is trading
slightly higher against the JPY at ¥94.86. The EUR is trading flat against its
peers before data that is expected to show retail sales in Italy dropped and
Spain’s unemployment rate climbed.
The
JPY is trading higher against its major peers, as intensifying worries over the
pace of economic recovery spurred demand for the safe haven currency.
The
USD is trading lower against the JPY, ahead of reports which are expected to
show a slowdown in US durable-goods orders and pending home sales for June,
boosting speculations of further monetary easing by the US Federal Reserve.
Yesterday, the EUR ended
higher against the USD, after an ECB council member Ewald Nowotny signalled
support to leverage the Eurozone’s bailout fund by allowing it to apply for a
banking license. However, gains were capped following dismal German business
confidence data for July. The GBP closed lower against the EUR and the USD,
after the UK Office for National Statistics reported a higher-than-expected
drop in UK second-quarter gross domestic product, spurring expectations of more
monetary stimulus and less fiscal tightening. The AUD ended higher against the
USD, after a report revealed that Australia’s consumer prices rose in line with
market expectations in the second-quarter of 2012. The NZD closed higher
against the USD, after New Zealand’s Reserve Bank left its official cash rate
at 2.5% and stated that the economy should grow “modestly”.
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