Friday 24 August 2012

August 24, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 2.1 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 6.4 points higher, while French CAC-40 futures are trading 2.7 points higher.
At 0500 BST today, DJIA futures are trading 10.0 points higher.
Nikkei 225 index is trading 1.1% lower at 9,077.2.
In Asia, crude oil for October delivery is trading 0.6% or $0.53 lower at $95.74 per barrel.
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5862, slightly higher against the EUR at €1.2628, and 0.1% higher against the JPY at ¥124.70.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 10.0 points higher.
Yesterday, DJIA shed 0.9% to settle at 13,057.5. NASDAQ slipped 0.7% to end at 3,053.4. S&P 500 fell 0.8% to close at 1,402.1.
US markets closed lower yesterday, after comments from a Federal Reserve official dimmed hopes of additional monetary stimulus. Market sentiment was also weighed down amid concern about the eurozone, and following disappointing domestic and international economic data.
Hewlett-Packard dropped 8.2%, after it posted a loss in its third-quarter, the worst in its 73-year history. Big Lots plunged 21.8%, as it lowered its full-year earnings outlook.
United States Steel dropped 6.9%, as a broker downgraded the stock from “Buy” to “Hold”. Guess tumbled 22.6%, as it forecasted weak third-quarter results and again lowered its full-year guidance.
International Rectifier slumped 11.9%, as it reported a loss in its fiscal fourth-quarter.
After the closing bell, Autodesk dropped 21.3%, as its second-quarter profit fell 9.3%, Salesforce.com declined 5.1%, after its quarterly forecasts came in lower than market expectations.
Asian Market Snapshot
Asian markets are trading lower this morning, following negative cues from Wall Street overnight and amid scaled back expectations of stimulus from major central banks. Continued concerns about the eurozone also weighed on market sentiment.
In Japan, Toyota Motor, Nissan Motor, Honda Motor and industrial robot maker Fanuc Corp dropped as a relatively stronger yen dimmed earnings prospects for exporters.
In Hong Kong, PetroChina is trading lower, as it reported a higher-than-expected drop in its second-quarter net profit, while Bank of China slipped after it reported a 6.3% decline in its first half earnings.
In South Korea, Samsung Electronics lost value, after a South Korean court ruled that both Apple and Samsung Electronics infringed on each other's patents in making their mobile devices.
 Nikkei 225 index is trading 1.1% lower at 9,077.2. Hang Seng index is trading 1.1% down at 19,909.3. Kospi is trading 1.0% lower at 1,923.5.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 2.1 points higher.
HSBC Holdings, which is under money-laundering investigation by the US regulators, is reportedly in settlement talks. HSBC has made a $700 million provision in July for any US fines.
Sagittarius Mines, a unit of Xstrata has warned it might delay the planned 2016 start of production at its Tampakan copper-gold project, located in the Southern Philippines in the wake of regulatory and security concerns.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 6.4 points higher, while French CAC-40 futures are trading 2.7 points higher.
Automobile maker, Volkswagen’s global sales of utility vehicles rose in the first seven months of 2012 by 4.7% to 317,300.
The board of directors of the French online shopping guide, Leguide.com has unanimously decided to approve the public offer of the media group Lagardere Active.
Commodities
In Asia, crude oil for October delivery is trading 0.6% or $0.53 lower at $95.74 per barrel.
Yesterday, crude oil for October delivery dropped 1.0% or $0.99 to $96.27 per barrel, as doubts about Europe's ability to address its debt crisis weighed on market sentiment.
However, expectations policymakers in China would implement fresh stimulus measures to boost economic growth following dismal Chinese manufacturing data and higher-than-expected rise in US new home sales in July limited losses.
Gold for immediate delivery is trading 0.1% lower today, at $1,667.15 per ounce.
Gold for December delivery settled up 2.0% or $32.30 at $1,672.80 per ounce yesterday, as disappointing Chinese manufacturing data and US jobless claims data boosted demand for the precious metal as a safe haven asset.
Mounting hopes of third quantitative easing by US Federal Reserve weighed on the dollar, pushing gold futures higher.
Yesterday, copper 3-month futures rose 1.3% or $99.0, to close at $7,676.00 /MT. Aluminium 3-month futures gained 1.4% or $25.0, to close at $1,795.00 /MT.
Currencies
At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5862, slightly higher against the EUR at €1.2628, and 0.1% higher against the JPY at ¥124.70, before the release of the UK GDP data for the second-quarter due later in the day.
The EUR is trading marginally higher against the USD at $1.2561. The EUR is trading slightly higher against the JPY at ¥98.75. Greece Prime Minister Antonis Samaras and German Chancellor Angela Merkel are scheduled to meet today to discuss about the next Greece loan tranche of €31.5 billion.
Earlier in the session, the JPY was trading higher against most of its major peers, as most Asian equity markets traded lower, increasing the demand for safe haven assets.
The AUD is trading lower against the NZD, after Reserve Bank of Australia Governor Glenn Stevens stated that the nation’s currency would probably fall if the mining boom ends.
Yesterday, the EUR closed higher against the USD, on a report that Spain is negotiating with the eurozone over conditions for international aid. However, gains were capped, after eurozone manufacturing data suggested that Europe might be heading for another recession, as the region logged its seventh month of manufacturing contraction in August.
The USD ended lower against the EUR, after data showed that US jobless claims rose to a one-month high and amid rising speculations that US Federal Reserve would introduce another round of monetary stimulus to boost economic growth.
Macroeconomic Snapshot
UK BBA mortgage approvals rose to 28,441 in July, compared to revised approvals of 25,940 recorded in June.
UK CBI retail sales balance fell to a reading of -3.0 in August from 11.0 recorded in the previous month.
Markit Economics reported that the flash manufacturing PMI in the US rose to a reading of 51.9 in August, from 51.4 recorded in the previous month.
For the week ended 18 August 2012, initial jobless claims in the US rose to 372,000, from the previous week's revised figure of 368,000.
On a seasonally adjusted basis, new home sales in the US rose 3.6% to an annual rate of 372,000 in July, compared to an upwardly revised rate of 359,000 in June.
On a year-on-year basis, the corporate service price index in Japan fell 0.2% to 96.0 in July compared to a downwardly revised 0.4% drop recorded in June.
 

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