August 15, 2012 Financial Market Summary

Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 17.1 points lower.

At 0500 BST today, German DAX Xetra 30 futures are trading 15.3 points lower, while French CAC-40 futures are trading 6.6 points lower.

At 0500 BST today, DJIA futures are trading 26.0 points lower.

Nikkei 225 index is trading 0.2% lower at 8,914.8.

In Asia, crude oil for September delivery is trading 0.4% or $0.33 lower at $93.10 per barrel.

At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5671, marginally lower against the EUR at €1.2717, and 0.1% lower against the JPY at ¥123.50.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 26.0 points lower.

Yesterday, DJIA rose marginally to close at 13,172.1. NASDAQ inched 0.2% lower to settle at 3,017.0. S&P 500 slid marginally to end at 1,403.9.

US markets closed mostly lower yesterday, as reports that Greece had sought an extension to implement the austerity programme coupled with concerns about impending “fiscal cliff” overshadowed encouraging domestic retail sales report.

Groupon tumbled 27.0%, as it reported second-quarter revenue that missed analyst estimates.

NCR sunk 9.8%, after a broker cut its rating on the stock to “Neutral” from “Outperform”. Kayak Software slumped 8.7%, after a slew of brokers initiated coverage on the stock with a “Neutral” rating.

However, Monster Beverage jumped 10.0%, as it doubled the size of its share-repurchase program. Home Depot added 3.6%, as it raised its full-year earnings estimate, amid double-digit growth in second-quarter earnings.

After the closing bell, JDS Uniphase gained 3.0%, as it posted forecast-beating fourth-quarter earnings. Kraft Foods dipped 0.2%, as it approved a spinoff of its North American grocery business.

Asian Market Snapshot

Asian markets are trading lower this morning as dwindling hopes for central bank stimulus measures and concerns about Greece overshadowed encouraging US retail sales and upbeat German GDP data. 

In Japan, Sharp dropped sharply amid media reports that the company cut its fiscal 2012 sales projections and after Deutsche Bank downgraded the stock to “Sell”. Gree fell after the company forecasted operating profit that missed analyst estimates.

In Hong Kong, China Life Insurance traded lower after it reported a drop in its premium income. Great Wall Motor dropped as it announced an investigation following media report that asbestos was found in some of its cars sold in Australia.

Nikkei 225 index is trading 0.2% lower at 8,914.8. Hang Seng index is trading 1.1% lower at 20,078.52. In South Korea, markets are closed on account of a public holiday.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 17.1 points lower.

Allied Gold shareholders have approved the acquisition of Allied Gold Mining Plc by St Barbara Limited.

Regulus Therapeutics has formed a strategic alliance with AstraZeneca to collaborate on three microRNA targets which are currently in pre-clinical development. Under the terms of the agreement, AstraZeneca would make a payment of $28 million to Regulus, which includes an equity investment and an upfront payment.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 15.3 points lower, while French CAC-40 futures are trading 6.6 points lower.

Adesso reported that its second-quarter operating income was down at €0.1 million compared to €2.6 million reported in the corresponding period previous year. The company lowered its full year guidance.

Overlap Groupe reported first-quarter sales of €31.3 million, a 16.0% drop compared to €37.3 million reported in the same period last year.

Commodities

In Asia, crude oil for September delivery is trading 0.4% or $0.33 lower at $93.10 per barrel.

Yesterday, crude oil for September delivery gained 0.8% or $0.70 to $93.43 per barrel, as upbeat economic data from Eurozone and better-than-expected US retail sales data buoyed market sentiment.

Oil prices were also supported on continued concerns that geopolitical tensions in the Middle East would disrupt oil supplies.

Later in the day, the American Petroleum Institute reported that US crude oil inventories had risen by 2.784 million barrels in the week ended 10 August.

Gold for immediate delivery is trading 0.1% higher today, at $1,602.05 per ounce.

Gold for December delivery settled down 0.6% or $10.20 at $1,602.40 per ounce yesterday, after better-than-expected US economic data dampened hopes for further monetary easing by the US Federal Reserve.

Gold futures also fell, as the dollar traded higher against its major counterparts.

Yesterday, copper 3-month futures fell 0.3% or $25.0, to close at $7,420.00 /MT. Aluminium 3-month futures slipped 0.3% or $5, to close at $1,765.00 /MT.

Currencies

At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5671, marginally lower against the EUR at €1.2717, and 0.1% lower against the JPY at ¥123.50, ahead of the UK unemployment data and Bank of England meeting minutes.

The EUR is trading flat against the USD at $1.2323. The EUR is trading marginally lower against the JPY at ¥97.11. Earlier, the EUR was trading higher against most of its counterparts after European Economic and Monetary Affairs Commissioner Olli Rehn signalled that Spain is considering a request for bailout.

The USD is trading higher against most of its major peers, amid speculation that a report today might show signs of improvement in the US manufacturing sector, dampening chances of monetary easing from the US Federal Reserve.

The AUD is trading lower against the USD, after a report showed consumer confidence in Australia fell by the most in five months. The AUD and the NZD were trading higher earlier after a private survey showed Australian business confidence advanced and a New Zealand government report showed retail sales increased more-than-forecast during the second quarter.

Yesterday, the USD ended higher against most other currencies after US retail sales rose more-than-expected in July.

The EUR ended lower against the GBP and the USD, after data showed GDP in the eurozone contracted in the second-quarter. However, losses were limited as data showed German growth slowed less-than-forecast and France unexpectedly avoided a contraction.

Macroeconomic Snapshot

On a quarter-on-quarter basis, Germany’s GDP rose 0.3% in the second quarter of the year, following a 0.5% growth recorded in the previous quarter.

The GDP in France in the second quarter was flat compared with the first quarter, compared to market forecasts for a 0.1% contraction.

On a seasonally adjusted monthly basis, industrial production in eurozone fell 0.6% in June, compared to a revised rise of 0.9% recorded in the previous month.

On a quarterly basis, the GDP in the eurozone fell 0.2% in the second quarter of 2012 compared to a flat reading in the previous quarter.

On a monthly basis, the producer price index in the US rose 0.3% in July, following a 0.1% increase recorded in June.

On a seasonally adjusted monthly basis, retail sales in the US rose 0.8% to $403.9 billion in July, compared to a downwardly revised of 0.7% drop recorded in June.