August 10, 2012 Financial Market Summary

At 0500 BST today, DJIA futures are trading 49.0 points lower.

Nikkei 225 index is trading 0.6% lower at 8,924.1.

At 0500 BST today, FTSE 100 futures are trading 17.9 points lower.

At 0500 BST today, German DAX Xetra 30 futures are trading 34.9 points lower, while French CAC-40 futures are trading 18.4 points lower.

In Asia, crude oil for September delivery is trading 0.1% or $0.11 lower at $93.25 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5622, marginally lower against the EUR at €1.2709, and marginally lower against the JPY at ¥122.79.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 49.0 points lower.

Yesterday, DJIA edged down 0.1% to settle at 13,165.2. NASDAQ ticked up 0.2% to close at 3,018.6. S&P 500 slid marginally to settle at 1,402.8.

US stocks ended mixed yesterday, with the DJIA snapping its four-days winning streak, while the S&P 500 gained marginally, as upbeat initial jobless claims data for the last week coupled with a narrowed trade deficit for June overshadowed concerns about the European economy.

Beazer Homes, PulteGroup and KB Home rallied between 4.5% and 6.3%, as JPMorgan raised their ratings on favourable demand-supply dynamics.

Cisco Systems gained 3.2%, as Goldman Sachs Group included it in its “Conviction Buy” list.

Seagate Technology and Western Digital rallied 1.4% and 2.8%, respectively, after a broker initiated coverage on both the stocks with a “Buy” rating.

However, Kohl's fell 1.2%, after it lowered its full-year outlook.

In extended hours trading, Yahoo dropped 3.4%, after it stated that its new chief executive was reviewing its restructuring plan. Nvidia climbed 4.7%, after it posted second-quarter earnings that surpassed analysts’ expectations.

Asian Market Snapshot

Asian markets are trading mostly lower this morning, retreating for the first time in five days, after Chinese trade surplus for July missed expectations, amid slowing growth in exports and following dismal corporate earnings reports.

In Japan, Mitsubishi UFJ Financial paced losses, amid reports that it had suspended a London-based employee on Thursday in connection with an investigation by British authorities into the yen-quoted Libor rate-rigging scandal.

In Hong-Kong, Li & Fung slumped as it reported a sharp drop in its half-year core operating profit.

However, in South Korea, LG Display climbed following a favourable statement by a local brokerage.

Nikkei 225 index is trading 0.6% lower at 8,924.1. Hang Seng index is trading 0.4% lower at 20,191.9. Kospi index is trading 0.2% higher at 1,944.6.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 17.9 points lower.

Compass Group announced that it has purchased for cancellation 350,000 ordinary shares at a price of 703.17 pence per share.

According to media reports, BP has restarted a coker unit at its 337,000-barrels-per-day (bpd) refinery in Whiting, Indiana, which had been closed for repairs after a brief fire.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 34.9 points lower, while French CAC-40 futures are trading 18.4 points lower.

The US Department of Labor has ordered Deutsche Telekom and its subsidiary T-Mobile USA to pay $345,972 to a worker in Bellevue who was fired from T-Mobile for whistle blowing in April 2009.

A British anti-corruption body has opened an inquiry to determine if the representatives of the EADS group have bribed the Saudi Arabian officials in order to obtain a telecommunications contract worth $3.3 billion.

Commodities

In Asia, crude oil for September delivery is trading 0.1% or $0.11 lower at $93.25 per barrel.

Yesterday, crude oil for September delivery added $0.01 to $93.36 per barrel, amid expectations of an increase in crude oil demand, following better-than-expected US economic data.

Oil prices also rose, amid news that the tropical storm in Mexico has closed oil installations and speculation that slower consumer price inflation in China might encourage policy makers to take more steps to boost economic growth.

However, a rising dollar and weakening euro dampened the appeal of the commodities as an alternative investment.

Gold for immediate delivery is trading 0.2% lower today, at $1,613.65 per ounce.

Gold for December delivery settled up 0.3% or $4.20 at $1,620.20 per ounce yesterday, as dismal Chinese inflation data spurred hopes for further monetary easing and added to expectations of another round of economic stimulus by central banks around the world.

Yesterday, copper 3-month futures dropped 0.2% or $15.5, to close at $7,510.00 /MT. Aluminium 3-month futures fell 0.3% or $5.0, to close at $1,770.00 /MT.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5622, marginally lower against the EUR at €1.2709, slightly lower against the JPY at ¥122.79.

The EUR is trading slightly lower against the USD at $1.2291.

The EUR is trading flat against the JPY at ¥96.61.

The EUR is trading lower against its major peers, ahead of data due next week which is forecasted to show that the eurozone’s economy shrank in the second-quarter.

The USD is trading higher against major currencies, as demand for the safe-haven currency increased amid ongoing worries over health of global economy and ahead of a report due next week which might show that US retail sales rose for the first time in four months in July.

Yesterday, the USD ended higher against its major counterparts, after reports revealed that US jobless claims dropped unexpectedly last week and US trade deficit narrowed more-than-expected in June.

The EUR ended lower against the USD, amid fading expectations that the ECB would take additional monetary actions to support the region’s economy.

The GBP closed lower against the USD, after data showed that UK visible trade deficit widened more-than-expected in June.

The JPY closed lower against the USD. The Bank of Japan (BoJ) kept its benchmark interest rates unchanged at between zero to 0.1% and maintained the size of the asset purchase programme.

Macroeconomic Snapshot

The visible trade deficit in the UK widened to £10.1 billion in June from a revised deficit £8.4 billion recorded in May.

The Conference Board reported that its leading economic index in the UK fell 0.3% in July, following a 0.8% drop recorded in June.

For the week ended 4 August 2012, initial jobless claims in the US fell to 361,000, compared to the previous week's revised figure of 367,000.

The trade deficit in the US narrowed to $42.9 billion in June, compared to a revised deficit of $48.0 billion recorded in May.

The consumer sentiment index in Japan dropped to a reading of 39.7 in July, compared to a reading of 40.4 recorded in the previous month.

China’s July trade surplus narrowed to $25.1 billion from $31.7 billion in June. Exports rose 1.0% from a year earlier in July, compared to a 11.3% rise recorded in June.

Source: www.etxcapital.com