August 17, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 1.6 points higher.

At 0500 BST today, German DAX Xetra 30 futures are trading 3.6 points lower, while French CAC-40 futures are trading 4.0 points lower.

At 0500 BST today, DJIA futures are trading 8.0 points lower.

Nikkei 225 index is trading 0.6% higher at 9,149.9.

In Asia, crude oil for September delivery is trading 0.4% or $0.41 lower at $95.19 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5725, slightly lower against the EUR at €1.2730, and 0.1% higher against the JPY at ¥124.82.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 8.0 points lower.

Yesterday, DJIA added 0.7% to close at 13,250.1. NASDAQ gained 1.0% to settle at 3,062.4. S&P 500 advanced 0.7% to end at 1,415.5.

US markets closed higher as a jump in building permits, positive earnings from Cisco and reassuring comments from German Chancellor Angela Merkel overshadowed data that showed Philadelphia Fed's manufacturing index stayed in the negative territory in August.

Cisco Systems jumped 9.6%, as it reported forecast-beating fourth-quarter results. Sears Holdings gained 6.5%, after it narrowed its losses by cutting costs for the second fiscal quarter. 

Electronic Arts and Coinstar rallied 5.5% and 7.6%, respectively, amid take-over speculations. PetSmart added 4.6%, as it raised its full-year earnings and sales-growth outlooks.

Place Retail Stores climbed 8.4%, as it raised its full-year outlook, despite reporting a wider second-quarter loss.

After the closing bell, Gap rose 1.8%, as its second-quarter results surpassed market expectation. Marvell Technology dropped 8.1%, as its second-quarter earnings plunged 52.0%.

Asian Market Snapshot

Asian markets are trading mostly higher this morning, tracking positive cues from Wall Street overnight and as comments from Germany’s chancellor eased concerns about the eurozone debt crisis.

In Japan, Toshiba rose after it developed a powerful motor magnet that sidesteps the need for a China-sourced rare-earth mineral. Yamaha Motor jumped after Credit Suisse upgraded its rating on the stock.

In Hong Kong, Tencent Holdings traded higher following its recent strong earnings report.

However, in South Korea, Samsung Electronics slid amid concern over its patent litigation with Apple. Korea Aerospace Industries fell, after Korean Air Lines emerged as a sole bidder for a controlling stake in Korea Aerospace Industries.

Nikkei 225 index is trading 0.6% higher at 9,149.9. Hang Seng index is trading 0.6% higher at 20,079.5. Kospi is trading 0.6% lower at 1,945.6.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 1.6 points higher.

Mepolizumab, an experimental drug by GlaxoSmithKline, has been proved to be effective in treating patients suffering from severe asthma in a clinical study. The drug nearly halved the number of attacks suffered by patients with a hard-to-treat form of the disease, boosting hopes for its commercial success.

Several people have died after police opened fire during clashes with striking mine workers at Lonmin’s Marikana mine in South Africa.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 3.6 points lower, while French CAC-40 futures are trading 4.0 points lower.

Fitch has affirmed Lanxess’s Long-term Issuer Default Rating and senior unsecured ratings at “BBB”, with a ‘Stable’ outlook.

Pilots for Air France-KLM have backed proposals to alter their contracts and working conditions as part of the company’s three-year restructuring plan, aimed at reducing operating costs and debt.

Commodities

In Asia, crude oil for September delivery is trading 0.4% or $0.41 lower at $95.19 per barrel.

Yesterday, crude oil for September delivery advanced 1.4% or $1.27 to $95.60 per barrel, amid optimism over demand outlook, following upbeat US building permits data for July and on the back of ongoing speculations of fresh monetary easing measures in China.

Renewed fears over escalating violence in Syria and lingering tensions between Iran and the West region also supported oil prices.

Gold for immediate delivery is trading marginally lower today, at $1,615.10 per ounce.

Gold for December delivery settled up 0.8% or $12.60 at $1,619.20 per ounce yesterday, as mixed US jobs and housing data sparked fresh speculation that the US Federal Reserve might take fresh stimulus measures in the near future to boost economic growth.

Reassuring comments from the German Chancellor Angela Merkel also pushed the euro higher against the dollar supporting gold futures.

However, gains were capped, amid worries over global gold demand, as the World Gold Council stated that demand dropped 7% in the second quarter.

Yesterday, copper 3-month futures rose 0.1% or $6.0, to close at $7,397.00 /MT. Aluminium 3-month futures fell 0.6% or $10.0, to close at $ 1,750.00 /MT.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5725, slightly lower against the EUR at €1.2730, and 0.1% higher against the JPY at ¥124.82.

The EUR is trading 0.1% lower against the USD at $1.2351, ahead of data releases for German producer prices and euro-zone trade balance.

The EUR is trading 0.1% higher against the JPY at ¥98.04, as Germany backed the ECB’s approach to stem the eurozone financial turmoil and ahead of meetings of German Chancellor Angela Merkel, French President Francois Hollande and Greek Prime Minister Antonis Samaras due next week.

Yesterday, the GBP ended higher against the USD, after a report indicated that UK retail sales unexpectedly rose in July.

The EUR ended higher against all of its major currencies, after German Chancellor Angela Merkel reiterated her commitment to working with the ECB to resolve the euro-zone debt crisis and after a report showed that German employment rose further in second quarter of 2012.

The USD ended lower against most of its major counterparts, after data revealed that US jobless claims rose slightly more-than-expected last week and US housing starts dropped more-than-expected in July. However, a rise in US building permits data in July provided some support for the US currency.

The JPY ended lower against the USD, as recent rise in US treasury yields prompted Japanese investors to buy assets abroad and amid speculation that the Bank of Japan would move faster than the US Federal Reserve to take fresh monetary easing steps.

Macroeconomic Snapshot

On a monthly basis, retail sales volumes in the UK rose 0.3% in July, following a revised rise of 0.8% recorded in June.

On an annual basis, the consumer price index in the eurozone remained stable at 2.4% in July, in line with market estimates and unchanged from the preliminary estimate.

On an annual basis, the number of persons employed in Germany increased 1.3% to 41.587 million in the second quarter of 2012, following a 1.4% gain recorded in the previous quarter.

For the week ended 11 August 2012, US initial jobless claims rose to 366,000, compared to the previous week's revised figure of 364,000.

On a seasonally adjusted basis, the housing starts in the US fell 1.1% to an annual rate of 746,000 in July, compared to a downwardly revised rate of 754,000 recorded in June.

The Philadelphia Fed's manufacturing index came in at a reading of -7.1 in August compared to -12.9 in July, marking the fourth consecutive negative reading.

Source: www.etxcapital.com