September 10, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 14.5 points lower.

At 0500 BST today, German DAX Xetra 30 futures are trading 16.3 points lower, while French CAC-40 futures are trading 4.7 points down.

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

Nikkei 225 index is trading 0.1% lower, at 8,860.3.

In Asia, crude oil for October delivery is trading 0.2% or $0.14 lower at $96.28 per barrel.

At 0400 BST today, the GBP is trading slightly lower against the USD at $1.5996, marginally lower against the EUR at €1.2507, and 0.1% lower against the JPY at ¥125.12.

US Market Snapshot

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

On Friday, DJIA edged up 0.1% to end at 13,306.6. NASDAQ gained marginally to close at 3,136.4. S&P 500 ticked up 0.4% to settle at 1,437.9.

US markets closed higher on Friday, as lackluster August jobs report fuelled speculation the Federal Reserve would unveil further stimulus measures.

AK Steel Holding, United States Steel, Peabody Energy, Cliffs Natural Resources and Alpha Natural Resources rallied between 7.6% and 16.8%, as China planned to boost its infrastructure.

Citigroup, Morgan Stanley and Bank of America rose between 3.1% and 5.4%, tracking their European peers following ECB’s decision to introduce unlimited bond-buying programme on Thursday. SunTrust Banks added 3.1%, as it aimed to boost its third-quarter income.

After the closing bell, Apple lost 32 cents, after The Wall Street Journal reported that Apple’s next iPhone would work worldwide on the next-generation LTE wireless network, raising possibilities of non-availability in all carriers. Luxury retailer, Michael Kors fell 4.5%, as some shareholders intended to sell about 20 million shares of the company.

Asian Market Snapshot

Asian markets are mostly higher this morning, as disappointing economic data from the US, China and Japan stoked speculation that major global central banks would add further stimulus to support economic growth.

In Japan, exporters, Canon, Nissan Motor, Nikon and TDK traded lower, as a relatively stronger yen weighed on their earnings outlook. Suppliers to Intel, Tokyo Electron and Nikon lost after Intel cut its sales forecast.

In Hong Kong, Tencent Holdings rose, as Morgan Stanley included it in its list of ‘Best Ideas’ in the Asia-Pacific region. Haier Electronics Group rallied after it offered to acquire New Zealand’s Fisher and Paykel Appliances.

In South Korea, POSCO and Hyundai Steel gained values, after China revealed its infrastructure boosting plans. KB Financial Group rose, amid media reports on Friday that it was expected to buy ING Groep NV's South Korean insurance business.

Nikkei 225 index is trading 0.1% lower, at 8,860.3. Hang Seng index is trading 0.4% up, at 19,870.7, while the Kospi index is trading 0.1% higher, at 1,931.3.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 14.5 points lower.

Financial times reported that Royal Bank of Scotland is facing a fine of between ₤200 million and 300 million for its role in the LIBOR rigging scandal.

Nearly 3,000 African gold miners have taken globally diversified miner Anglo American to the High Court, claiming that poor working conditions have caused lung diseases in mine workers.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 16.3 points lower, while French CAC-40 futures are trading 4.7 points down.

German weekly magazine “Der Spiegel” reported Volkswagen has cut its internal sales target for 2012 for Western Europe by 150,000 vehicles.

Wendel announced that it had successfully placed a bond issue of €400 million maturing in September 2019 with a coupon of 5.875%. The issue was oversubscribed six times.

Commodities

In Asia, crude oil for October delivery is trading 0.2% or $0.14 lower at $96.28 per barrel.

On Friday, crude oil for October delivery gained 0.9% or $0.89 to $96.42 per barrel, as weaker-than-expected US nonfarm payrolls data fuelled speculation that the US Federal Reserve would implement new stimulus measures to strengthen the US economy.

Persistent threat about rising violence in the Middle East and  disruption in oil supply from the region also supported oil prices.

However, gains were capped amid speculation strategic oil reserves might be released by the US and other major oil consumer governments, after US government officials met oil market experts on Thursday as the White House to consider the merits of another release of emergency oil reserves.

Gold for immediate delivery is trading 0.1% higher today, at $1,737.90 per ounce.

Gold for December delivery settled up 2.1% or $34.90 at $1,740.50 per ounce on Friday, as dismal US employment data sparked fresh expectations for another round of quantitative easing by the US Federal Reserve.

Gold prices also rose, as the dollar weakened against the major currencies, increasing the demand for the precious metal as a hedge against inflation.

On Friday, copper 3-month futures rose 2.3% or $175.0, to close at $7,855.50 /MT. Aluminium 3-month futures rose 0.5% or $10.0, to close at $1,860.00 /MT.

Currencies

At 0400 BST today, the GBP is trading slightly lower against the USD at $1.5996, marginally lower against the EUR at €1.2507, and 0.1% lower against the JPY at ¥125.12.

The EUR is trading slightly lower against the USD at $1.2791 and 0.1% lower against the JPY at ¥100.05, ending a three-day advance, after Greece’s Prime Minister Antonis

Samaras failed to secure agreement from his coalition partners on €11.5 billion of spending cuts required by lenders to his country. However, losses against the USD were capped, ahead of a report due tomorrow that might show the US trade deficit widened in July.

On Friday, the USD ended lower against the EUR and other major currencies, after disappointing US job data fuelled speculations for third round of quantitative easing by the US Federal Reserve. The EUR also rose, as investors cheered the ECB’s plan announced on Thursday to lower borrowing costs for Spain and Italy.

The GBP closed higher against the USD, as better-than-expected UK economic data cemented expectations that the BoE is unlikely to ease monetary policy in near future.

The CAD ended higher against the USD, after data revealed that Canadian employment rose faster than market forecast in August.

The AUD ended higher against the USD, following reports that Australia's biggest export market, China has approved plans for $158 billion in infrastructure spending to boost economic growth.

Macroeconomic Snapshot

The Bank of Japan reported that on an annual basis, bank lending in Japan excluding trusts rose 1.1% to ¥396.432 trillion in August.

On a quarterly basis, Japan’s final gross domestic product rose 0.2% in the second-quarter of 2012..

Japan’s current account surplus rose to ¥625.4 billion in July, from a surplus of ¥433.3 billion recorded in June.

China has added stimulus worth more than CNY 1.0 trillion as the National Development and Reform Commission (NDRC) approved a slew of infrastructure projects this week to help the economy counter the global gloom, which has increasingly diluted export gains.

On a year-on-year basis, the consumer price index (CPI) in China rose 2.0% in August, compared to a 1.8% rise recorded in July.

On a year-on-year basis, total industrial production growth in China eased to 8.9% in August.

On a yearly basis, China’s exports rose by 2.7% in August, as global demand continued to remain subdued, while imports fell 2.6% indicating a decline in domestic demand.

 

Source: www.etxcapital.com