Monday, 13 August 2012

August 13, 2012 Financial Market Summary

Macroeconomic Snapshot
On a quarter-on-quarter basis, the construction output in the UK declined 3.9% in the second quarter of 2012.
On an annual basis, the output price inflation in the UK eased to 1.7% in July, from a revised 2.0% growth recorded in June.
On a monthly basis, the import price index in the US fell 0.6% in July, following a revised 2.4% drop recorded in June.
The budget deficit in France narrowed to €56.7 billion at the end of June, compared to a deficit of €69.6 billion recorded at the end of June 2011.
Inflation in Germany stood at 1.7% in July, unchanged from the figure for June.
On a quarterly basis, the gross domestic product in Japan expanded 0.3% in the second quarter of 2012, following a revised 1.3% growth recorded in the previous quarter.

Financial Markey Summary
At 0500 BST today, DJIA futures are trading 31 points lower.
Nikkei 225 index is trading flat at 8,892.6.
At 0500 BST today, FTSE 100 futures are trading 18.7 points lower.
At 0500 BST today, German DAX Xetra 30 futures are trading 25.2 points lower, while French CAC-40 futures are trading 12.8 points lower.
In Asia, crude oil for September delivery is trading 0.8% or $0.73 higher at $93.60 per barrel.
At 0400 BST today, the GBP is trading marginally higher against USD at $1.5674, marginally lower against the EUR at €1.2746, 0.1% higher against the JPY at ¥122.78.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 31 points lower.
On Friday, DJIA edged up 0.3% to close at 13,208.0. NASDAQ inched 0.1% higher to settle at 3,020.9. S&P 500 ticked up 0.2% to end at 1,405.9.
US markets closed higher, as a drop in domestic import prices in July for the fourth straight month and disappointing Chinese trade data, added to expectations global central banks would act to shore up the world`s economies.
JC Penney rose 5.9%, after its Chief Executive detailed about its turnaround plans, amid quarterly losses and plunging sales. Research In Motion climbed 6.3%, on reports that IBM might acquire its enterprise division.
Harman International Industries jumped 7.5%, leading the S&P 500 index, as its fourth-quarter earnings more than doubled, amid forecast-beating results.
Spectrum Pharmaceuticals added 2.6%, as it boosted its stock re-purchase plan to $100 million from previously authorized $25 million.
In extended hours trading, Manchester United lost 0.6%, as they slashed their IPO price. Logistics firm, C.H. Robinson notched up 3 cents as it boosted its share repurchase programme.
Asian Market Snapshot
Asian markets are trading mostly lower today, following disappointing economic growth data from Japan and after China failed to announce any growth-stimulating measures over the weekend.
In Japan, Sharp tumbled after a media report stated that the company might soon sell its foreign LCD module assets to Taiwan's Hon Hai Precision Industry. Nexon fell after the company cut its profit forecast.
In Hong Kong, Bank of Communications fell after it received regulatory approval for a nearly $9 billion private placement.
In South Korea, Kumho Industrial declined amid media report that the company was mulling a capital writedown plan by the end of this year.
Nikkei 225 index is trading flat at 8,892.6. Hang Seng index is trading 0.1% lower at 20,115.7, while Kospi index is trading 0.4% lower at 1,939.4.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 18.7 points lower.
Standard Chartered has agreed to a demand from the New York Department of Financial Services that the bank hire an outside monitor to ensure compliance with US anti-money laundering laws.
BP has agreed to sell its Sunray and Hemphill processing plants and associated 2,500 miles of pipelines in the Texas Panhandle to Eagle Rock Energy Partners LP for a consideration of $227.5 million in cash.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 25.2 points lower, while French CAC-40 futures are trading 12.8 points lower.
Siemens subsidiary Osram and Samsung have settled their global patent dispute over LED technology according a filing with the US-International Trade Commission (ITC) in Washington.
ARCHOS reported a first-half loss of €21.9 million compared to a profit of €1.7 million in the previous year. Revenues stood at €74.2 million, an increase of 3.5% from €71.7 million reported in the previous year.
Commodities
In Asia, crude oil for September delivery is trading 0.8% or $0.73 higher at $93.60 per barrel.
On Friday, crude oil for September delivery dropped 0.5% or $0.49 to $92.87 per barrel, after data showed that China's crude oil imports dropped in July and after the International Energy Agency cut its estimates for global oil demand, trimming its demand forecast for 2013 by 400,000 barrels per day citing "worrying slowdown" in global economic activity.
However, geopolitical tensions in Syria and reports of a possible military strike on Iran's nuclear facilities by Israel supported crude oil prices. Additionally, news that a tropical depression in the Atlantic could become a tropical storm also kept investors cautious, supporting oil prices.
Gold for immediate delivery is trading 0.3% higher today, at $1,624.50 per ounce.
Gold for December delivery settled up 0.2% or $2.60 at $1,622.80 per ounce on Friday, as the dollar slipped against its counterparts and as lacklustre data in China increased speculation that the country might take more steps to boost economic growth.
On Friday, copper 3-month futures dropped 0.9% or $70.5, to close at $7,439.50 /MT. Aluminium 3-month futures fell 0.3% or $5.0, to close at $1,765.00 /MT.
Currencies
At 0400 BST today, the GBP is trading marginally higher against USD at $1.5674, marginally lower against the EUR at €1.2746, 0.1% higher against the JPY at ¥122.78.
The EUR is trading slightly higher against the USD at $1.2297. Earlier, the USD was trading higher against the EUR amid speculation reports tomorrow would show gross domestic product grew at a slower pace in Germany and contracted in France. The USD was also supported on speculation that reports this week would show sales at US retailers rose in July for the first time in four months.
The EUR is trading 0.1% higher against the JPY at ¥96.33, before Italy sells €8 billion in bills today.
The JPY is trading lower against the EUR and the USD, after data showed that the pace of economic growth in Japan eased to an annualized 1.4% in the second quarter of the year.
The AUD and NZD are trading lower against their major peers as signs of a slowdown in global economic recovery decreased demand for higher-yielding assets.
On Friday, the EUR closed lower against the USD and the GBP, as demand for riskier assets declined amid concerns the European debt crisis is worsening and slowing global economic growth in the region. Spanish and Italian bond yields rose amid concern the ECB’s bond buying program might fail to address problems of Spain and Italy.

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