July 27, 2012 Financial Market Summary

DJIA advanced 1.7% to settle at 12,887.9. NASDAQ added 1.4% to close at 2,893.3. S&P 500 climbed 1.7% to settle at 1,360.0.

Nikkei 225 index is trading 1.4% higher at 8,561.7.

FTSE 100 added 1.4%, to settle at 5,573.2.

FTSEurofirst 300 index rose 2.4% to 1,042.6.

In Asia, crude oil for September delivery is trading 0.2% or $0.17 higher at $89.56 per barrel.

At 0400 BST today, the GBP is trading flat against the USD at $1.5682, 0.1% lower against the EUR at €1.2760, and 0.1% lower against the JPY at ¥122.66.

US Market Snapshot

US markets closed higher yesterday, following favourable comments from the ECB President Mario Draghi and after US data showed new claims for jobless benefits fell last week and durable goods orders came in better-than-expected in June. MetroPCS Communications rallied 36.8%, after it reported a sharp rise in its second-quarter earnings. Exxon Mobil added 1.5%, as it posted stronger-than-expected second-quarter profit. Visa gained 3.7%, as the company reported fiscal third-quarter profit that surpassed analyst estimates led by higher card spending. 3M climbed 2.1%, on better-than-expected second-quarter earnings. PulteGroup soared 18.4%, as a jump in orders helped the company register higher-than-expected second quarter earnings.

DJIA advanced 1.7% to settle at 12,887.9. NASDAQ added 1.4% to close at 2,893.3. S&P 500 climbed 1.7% to settle at 1,360.0.

Asian Market Snapshot

Asian markets are trading sharply higher this morning, taking cues from overnight gains on Wall Street and as ECB President Mario Draghi’s vowed to preserve the euro, lifting market sentiment. In Japan, exporters, Mazda Motor, Sony Corp and Pioneer Corp paced gains, as the yen weakened against the euro. Toshiba traded higher after a Nikkei report that the company’s first-quarter operating profit is expected to more than double on strong performance at its infrastructure segment. In Hong Kong, banks, Industrial Commercial Bank of China and China Construction Bank Corp gained values, amid improved risk appetite among investors. In South Korea, Samsung Electronics traded higher, following upbeat second-quarter results, while peer LG Display traded higher after it posted better-than-expected second-quarter results yesterday.

Nikkei 225 index is trading 1.4% higher at 8,561.7. Hang Seng index is trading 1.9% higher at 19,255.9. Kospi index is trading 2.2% higher at 1,820.8.

UK Market Snapshot

UK markets closed higher yesterday, after European Central Bank’s (ECB) President Mario Draghi pledged to take measures to safeguard the euro and address high yields on sovereign debt. Miners, Polymetal International, Vedanta Resources, Kazakhmys and Rio Tinto surged between 2.2% and 7.6%, tracking a rise in base metal prices. Unilever rose 5.4%, after posting second-quarter sales that exceeded market expectations. Rolls-Royce gained 6.7%, as it posted robust second-quarter results, and forecasted "good" growth for the whole year. SABMiller advanced 3.9%, as its first-quarter sales surpassed analysts’ estimates. Compass Group climbed 4.5%, as emerging market contracts helped boost the company’s third-quarter revenues. Banking sector stocks, Royal Bank of Scotland, Barclays, Standard Chartered and HSBC advanced between 1.6% and 2.2%, following upbeat comments from ECB President Mario Draghi. 

FTSE 100 added 1.4%, to settle at 5,573.2. FTSE 250 climbed 1.5%, to close at 11,039.5.

European Market Snapshot

Other European markets closed sharply higher yesterday, with the FTSEurofirst 300 index snapping its four-day losing streak, after ECB President Mario Draghi pledged that policy makers would do whatever is needed to preserve the euro and act on surging bond yields. Banks, Banco Santander, Societe Generale and Deutsche Bank climbed between 5.0% and 10.7%, as risk appetite improved among investors. Total, Technip and ThyssenKrupp gained between 2.3% and 3.7%, on the back of higher commodity prices. France Telecom advanced 6.4%, after the company reported a smaller-than-expected decline in its first-half revenue. ABB rose 5.2%, after the company issued an upbeat short-term outlook as orders increased in China.

FTSEurofirst 300 index rose 2.4% to 1,042.6. German DAX Xetra 30 rose 2.8% to 6,583.0. French CAC-40 closed 4.1% higher at 3,207.1..

Commodities

In Asia, crude oil for September delivery is trading 0.2% or $0.17 higher at $89.56 per barrel. Yesterday, crude oil for September delivery gained 0.5% or $0.42 to $89.39 per barrel, as better-than-expected US durable goods and jobless claims data eased concern over slowing economic growth, and as the euro traded higher against the dollar, after European Central Bank (ECB) President Mario Draghi reiterated his commitment to preserve the European common currency.

Gold for immediate delivery is trading 0.1% higher today, at $1,615.50 per ounce. Gold for August delivery settled up 0.4% or $7.00 at $1,615.10 per ounce yesterday, as the euro strengthened against the dollar following ECB President Mario Draghi’s comments and renewed hopes of an economic stimulus.

Currencies

At 0400 BST today, the GBP is trading flat against the USD at $1.5682, 0.1% lower against the EUR at €1.2760, and 0.1% lower against the JPY at ¥122.66.

The EUR is trading 0.1% higher against the USD at $1.2290, extending its previous session gains following ECB President Mario Draghi’s positive comment on the euro.

The USD fell, ahead of data which is expected to show that the US economy expanded at the slowest pace in a year in the second quarter, boosting speculation that the US Federal Reserve would implement a third round of quantitative easing.

The EUR is trading marginally lower against the JPY at ¥96.13.

The WON is trading higher against the USD, after a report revealed that South Korea’s current-account surplus widened to a record in June.

Earlier in the session, the JPY traded lower against most of its major counterparts, after data revealed that Japan’s consumer prices declined in June, spurring expectations of further monetary easing. Yesterday, the EUR ended sharply higher against the USD and the JPY, after European Central Bank President Mario Draghi stated that policy makers would do whatever is needed to preserve the European common currency, the euro. The GBP also closed higher against its peers, on optimism European policy makers would take measures to contain the region’s debt crisis, improving the outlook for the UK economy. The USD closed higher against the JPY, after reports indicated that US initial jobless claims fell more-than-expected last week and durable-goods orders rose in June.