September 12, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 6.2 points higher.

At 0500 BST today, German DAX Xetra 30 futures are trading 37.3 points up, while French CAC-40 futures are trading 11.6 points higher.

At 0500 BST today, DJIA futures are trading 28.0 points higher.

Nikkei 225 index is trading 1.5% higher, at 8,935.5.

In Asia, crude oil for October delivery is trading marginally lower at $97.10 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.6076, 0.1% lower against the EUR at €1.2497, and 0.1% higher against the JPY at ¥125.17.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 28.0 points higher.

Yesterday, DJIA gained 0.5% to settle at 13,323.4. NASDAQ rose marginally to end at 3,104.5. S&P 500 edged up 0.3% to close at 1,433.6.

US stocks ended higher yesterday, with the DJIA logging its best level in nearly five years, ahead of a key German court ruling and on optimism about probable action from the Federal Reserve.

Citigroup and Morgan Stanley added 2.6% and 3.9%, respectively, after they agreed on a $13.5 billion valuation for their retail brokerage joint venture.

Advanced Micro Devices jumped 8.1%, as it unveiled a low-power server platform. Hewlett-Packard added 3.0%, as it mulled to trim more of its workforce than previous estimates.

First Solar gained 4.9%, as it signed a power purchase agreement with Pacific Gas and Electric Company. Denbury Resources, Cabot Oil & Gas and Alpha Natural Resources rallied between 4.6% and 7.7%, as oil prices strengthened.

After the closing bell, Facebook gained 3.5%, as its CEO, Mark Zuckerberg forecasted the social network would eventually make more money off mobile usage than PC usage. Xyratex declined 16.9%, as it trimmed its third-quarter revenue expectations.

Asian Market Snapshot

Asian markets are trading higher this morning, as investors remained cautiously optimistic on German court’s ruling over the constitutional validity of the eurozone bailout fund and that China and the US might take further measure to spur economic growth.

In Japan, Mitsui High-tec gained as it raised its earnings guidance for the first half ended July. Tokyo Electric Power edged up, after announcing plans to draft reform plans for its nuclear division by year-end. Fanuc rallied after Japan’s machinery orders increased in July.

In Hong Kong, AIA gained value, after it emerged as the front-runner to buy ING's Malaysia and Thailand insurance operations.

In South Korea, Kia Motors advanced, after its labour union tentatively accepted a revised wage and working-conditions deal on Wednesday.

Nikkei 225 index is trading 1.5% higher, at 8,935.5. Hang Seng index is trading 1.1% up, at 20,067.3, while the Kospi index is trading 1.6% higher, at 1,950.2.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 6.2 points higher.

FMR LLC, parent of Fidelity Investments, announced that it has increased its voting rights in Next Plc to 13.95%.

Rio Tinto announced that it has received approval for its proposed $600 million expansion of Kennecott Utah Copper’s Bingham Canyon mine.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 37.3 points up, while French CAC-40 futures are trading 11.6 points higher.

The CEO of SAP, Jim Hagemann Snabe, stated that, the company plans to unveil software that would allow customers to tailor applications for handheld devices.

GDF Suez has sent a request to the Energy Regulation Commission to increase the price of natural gas by 7% from 1st October to catch up with the market trends.

Commodities

In Asia, crude oil for October delivery is trading marginally lower at $97.10 per barrel.

Yesterday, crude oil for October delivery gained 0.7% or $0.63 to $97.17 per barrel, as the dollar weakened against the euro, amid rising speculation that the US Federal Reserve might announce another round of quantitative easing at its policy meeting and following warning from Moody’s Investors Service  that the US could lose its top-notch debt rating.

Oil prices also rose amid speculation that weekly inventory data would show a drop in US crude stockpiles following last week’s declines on shutdown production due to Hurricane Isaac

Gold for immediate delivery is trading 0.1% higher today, at $1,735.65 per ounce.

Gold for December delivery settled up 0.2% or $3.10 at $1,734.90 per ounce yesterday, amid mounting hopes of additional monetary easing by the US Federal Reserve. Gold prices rose, as the dollar weakened against the major currencies, increasing the demand for the precious metal as a hedge against inflation. Moreover, a spreading strike in a gold mine in South Africa also provided some support for gold prices.

Yesterday, copper 3-month futures rose 0.4% or $29.5, to close at $8,080.00 /MT. Aluminium 3-month futures gained 1.3% or $25.0, to close at $1,930.00 /MT.

Currencies

At 0400 BST today, the GBP is trading slightly higher against the USD at $1.6076, 0.1% lower against the EUR at €1.2497, and 0.1% higher against the JPY at ¥125.17, ahead of the release of UK employment data due later in the day.

The EUR is trading 0.1% higher against the USD at $1.2864. The EUR is trading 0.2% higher against the JPY at ¥100.17. Investors remain cautiously optimistic ahead of a decision by Germany’s constitutional court on challenges to Germany’s participation in the €500 billion European Stability Mechanism (ESM).

The USD is trading lower against other major currencies, on expectations of QE3, as the US Federal Reserve prepares to begin a two-day policy meeting.

The AUD and NZD are trading higher against the USD, as demand for riskier assets increased, amid rising speculation the US and China would take additional steps to stimulate their economies. The AUD also rose, after a private report showed Australian consumer confidence improved in September.

Yesterday, the USD ended lower against all of its major counterparts, after Moody’s Investors Service threatened to cut US debt rating by one notch if budget negotiations fail.

The GBP ended higher against the USD, after a report showed the UK visible trade deficit narrowed more-than-expected in July, adding to signs the economy is recovering from recession. Upbeat comments by the BoE policy maker, Ian McCafferty also pushed the GBP higher.

The EUR closed higher against the USD, amid expectations that a German constitutional court would approve the eurozone bailout fund, or ESM, adding further optimism about a resolution to the region's debt crisis.

Macroeconomic Snapshot

The visible trade deficit in the UK narrowed to £7.1 billion in July, compared to a revised £10.1 billion deficit posted in June.

On an annual basis, the wholesale price index in Germany rose 3.1% in August, compared to a 2.0% growth recorded in July.

On a quarterly basis, non-farm payroll employment in France declined 0.1% in the second quarter of 2012, and compared to a same rate of fall recorded in the previous quarter.

The trade deficit in the US widened to a seasonally adjusted $42.0 billion in July, compared to a revised deficit of $41.9 billion recorded in June.

On a seasonally adjusted monthly basis, core machine orders in Japan rose 4.6% in July, following a 5.6% increase posted in June.

On an annual basis, the M2 money supply in China climbed 13.5% in August, following a 13.9% rise posted in July.

 

Source: www.etxcapital.com