August 22, 2012 Financial Market Summary

At 0500 BST today, DJIA futures are trading 33.0 points lower.

Nikkei 225 index is trading 0.9% lower at 9,078.0.

At 0500 BST today, FTSE 100 futures are trading 18.4 points lower.

At 0500 BST today, German DAX Xetra 30 futures are trading 30.2 points down, while French CAC-40 futures are trading 15.2 points lower.

In Asia, crude oil for October delivery is trading 0.1% or $0.08 down at $96.76 per barrel.

At 0400 BST today, the GBP is trading slightly higher against the USD at $1.5781, 0.1% higher against the EUR at €1.2658, and marginally lower against the JPY at ¥125.04.

 

US Market Snapshot

At 0500 BST today, DJIA futures are trading 33.0 points lower.

Yesterday, DJIA shed 0.5% to settle at 13,203.6. NASDAQ edged down 0.3% to end at 3,067.3. S&P 500 slid 0.4% to close at 1, 413.2.

US markets closed lower yesterday, with the S&P 500 index retreating from its four-year high level, as a decline in technology sector stocks overshadowed optimism over the progress in euro-bloc.

Apple slipped 1.4%, on report the company and Samsung Electronics had failed to settle a potentially costly patent dispute. Facebook declined 4.3%, after its director sold roughly $400 million worth of shares.

Best Buy dropped 1.4%, as it suspended its profit outlook and share buybacks for the year, amid forecast-trailing second-quarter profit. Medical technology firm, Medtronic lost 0.8%, despite reporting higher first-quarter earnings.

Groupon declined 2.4%, closing to a new low, after Barclays lowered its rating on the stock to “Underweight” from “Equal-weight.”

After the closing bell, Dell declined 4.5%, as it lowered its full-year forecast amid downbeat second-quarter results. Analog Devices dipped 0.4%, as it forecasted a weak fourth-quarter on expectations margins would remain under pressure.

 

Asian Market Snapshot

Asian markets are trading lower this morning, as Japan posted a wider-than-expected trade deficit in July and as investors await more cues from the eurozone before the region’s finance ministers meeting this week.

In Japan, Japan Tobacco paced losses amid investigation by the EU on accusations that it smuggled cigarettes to Syria despite sanctions against the country. Nintendo and Kyocera traded lower, on news that both companies were under investigation by the US International Trade Commission over possible wireless patent infringement.

In Hong Kong, China Rongsheng Heavy Industries Group and Cnooc dropped after booth reported downbeat earnings.

In South Korea, Samsung Electronics fell, after its customer Dell cut its full-year profit forecast on weaker demand for personal computers

Nikkei 225 index is trading 0.9% lower at 9,078.0. Hang Seng index is trading 0.8% lower at 19,930.3. Kospi is trading 1.3% lower at 1,919.0.

 

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 18.4 points lower.

GlaxoSmithKline announced that it has purchased 750,000 of its ordinary shares of 25 pence each and intends to hold the shares in Treasury. The shares were bought at a price range of 1462.5p-1479.0p.

Highcroft Investments announced that its subsidiary, Rodenhurst Estates Limited purchased a property located in Elms Industrial Estate from Eastburn Estates Limited for a consideration of £1.86 million.

 

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 30.2 points down, while French CAC-40 futures are trading 15.2 points lower.

Siemens Healthcare has entered into a definitive agreement to acquire Penrith Corporation, a manufacturer of integrated ultrasound imaging systems, with an aim to offer new and improved diagnostic capabilities.

Vivalis and its Australian partner Biodiem announced successful results from two programs to develop vaccines that have been tested in successful Phase II clinical trials.

 

Commodities

In Asia, crude oil for October delivery is trading 0.1% or $0.08 down at $96.76 per barrel, ahead of the release of Energy Department’s oil inventories data due later in the day.

Yesterday, crude oil for September delivery gained 0.7% or $0.71 to $96.68 per barrel. The September contract expired at the end of the session. The more actively traded October contract added 0.6% or $0.58 to $96.84 per barrel, amid optimism European leaders would take further steps to help debt-ridden countries in the region and as the dollar traded lower against the euro.

Ongoing worries over escalating violence in Syria and lingering tensions between Iran and the West also pushed oil prices higher.

Later in the day, the American Petroleum Institute reported that crude oil inventories dropped 6.04 million barrels to 361 million last week.

Gold for immediate delivery is trading 0.1% higher today, at $1,639.00 per ounce.

Gold for December delivery settled up 1.2% or $19.90 at $1,642.90 per ounce yesterday, as the dollar weakened against major currencies, amid intervention hopes by the ECB to stem eurozone debt crisis and ongoing expectations of further monetary easing by the US Federal Reserve. Gold prices also rose, as China hinted at fresh stimulus to boost its economy.

Yesterday, copper 3-month futures rose 1.1% or $82.5, to close at $7,524.50 /MT. Aluminium 3-month futures gained 0.6% or $10.0, to close at $1,755.00 /MT.

 

Currencies

At 0400 BST today, the GBP is trading slightly higher against the USD at $1.5781, 0.1% higher against the EUR at €1.2658, and marginally lower against the JPY at ¥125.04.

The EUR is trading 0.1% lower against the USD at $1.2464. The EUR is trading 0.1% lower against the JPY at ¥98.77. The EUR is trading lower against its most of major counterparts, as investor await the outcome of meetings among European leaders this week, beginning with Luxembourg Prime Minister Jean-Claude Juncker’s visit to Greece today to discuss the nation’s request for a two- year extension to its fiscal adjustment program.

The USD is trading higher against most of its major peers, ahead of data that might show an improvement in US housing market in July, damping prospects the US Federal Reserve would implement additional monetary easing.

Yesterday, the EUR ended higher against the USD and the JPY, as European leaders meet this week to discuss Greece’s fiscal adjustment program and amid increasing optimism that the ECB would make progress to bring down borrowing costs of Spain and Italy. The EUR also rose, as Spanish borrowing costs declined at a bill auction. The GBP ended lower against the EUR, after a report indicated that UK manufacturing orders declined to an eight-month low in August. A separate report showed that the UK government borrowed more-than-expected in July.

The AUD ended higher against the USD, after the minutes of Reserve Bank of Australia’s latest meeting indicated that policy makers held the benchmark interest rate unchanged at 3.5% for a second month.

 

Macroeconomic Snapshot

UK public sector net borrowing posted a surplus of £1.8 billion in July, compared to a revised deficit of £12.2 billion in June.

The Confederation of British Industry indicated that total order book balance in the UK dropped to -21.0 in August from -6.0 recorded in July.

Leading economic index in Germany fell 0.8% to a reading of 103.2 in June, compared to a 0.4% drop recorded in May.

On a month-on-month basis, the all industry activity index in Japan rose 0.2% in June, compared to a revised 0.2% drop recorded in the previous month.

Japan’s merchandise trade deficit stood at ¥517.382 billion in July, compared to a downwardly revised surplus of ¥60.3 billion recorded in June.

The People's Bank of China has injected CNY220 billion into the money market through reverse repurchase operations.

Source: www.etxcapital.com