September 14, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 19.4 points higher.

At 0500 BST today, German DAX Xetra 30 futures are trading 19.3 points up, while French CAC-40 futures are trading 12.4 points higher.

At 0500 BST today, DJIA futures are trading 31.0 points higher.

Nikkei 225 index is trading 1.5% higher, at 9,133.4.

In Asia, crude oil for October delivery is trading 0.6% or $0.62 higher at $98.93 per barrel.

At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.6178, slightly higher against the EUR at €1.2437, and 0.1% higher against the JPY at ¥125.55.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 31.0 points higher.

Yesterday, DJIA surged 1.6% to settle at 13,539.9. NASDAQ spurred 1.3% to end at 3,155.8. S&P 500 soared 1.6% to close at 1,460.0.

US markets closed higher yesterday, with the S&P 500 climbing to highest level in nearly five years, as the US Federal Reserve announced that it would buy mortgage-backed securities to bolster the economy.

Bank of America and JPMorgan Chase gained 4.8% and 3.7%, respectively, as risk appetite increased amongst investors following the Federal Open Market Committee decision.

Apple rallied 2.0%, after several brokerages boosted their price target on the stock. Equinix added 7.5%, as its board approved plans to convert the company into a real estate investment trust.

DSW advanced 2.3%, as it declared a special dividend of $2 a share, in a bid to boost shareholder returns. Pall Corp climbed 8.0%, as its fourth-quarter result surpassed market expectation.

After the closing bell, Analogic jumped 11.2%, as its Q4 earnings came in well ahead of market expectations, while Western Digital shed 1.6%, as it forecasted Q3 earnings that were lower than market expectations.

Asian Market Snapshot

Asian stock markets are trading higher this morning, after the US Federal Reserve decided launch another round of bond buying programme and vowed to maintain interest rates near zero until mid-2015.

In Japan, Nintendo added values, after it unveiled its first new home console in six years, while Hitachi rallied after it decided to boost its dividend. Nomura Holdings traded higher after it restructured the management team at its US equities division.

In Hong Kong, Sun Hung Kai Properties logged gains, after it posted record profit for the full-year ended June. China Eastern Airlines added values, after it completed the issuance of short-term commercial paper.

In South Korea, POSCO advanced, after it decided to restructure its subsidiaries to develop its core business capabilities.

Nikkei 225 index is trading 1.5% higher, at 9,133.4. Hang Seng index is trading 2.4% up, at 20,535.5, while the Kospi index is trading 2.6% higher, at 2,001.2.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 19.4 points higher.

According to Financial times, BAE Systems stated it would walk away from discussions with EADS unless the combined entity was allowed to operate as a normal company without political intervention.

New World Resources announced that it has appointed Mr. Jan Fabian as CEO and Chairman of the Board of its Czech coal subsidiary OKD effective 1 January 2013.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 19.3 points up, while French CAC-40 futures are trading 12.4 points higher.

Allianz stated that its CFO, Oliver Bäte, would trade responsibilities with Dieter Wemmer, board member responsible for overseeing insurance operations in Western and Southern Europe, by January 1, 2013.

South Sudan would split a massive oil block largely held by Total into three parts, giving one part to the French firm and the others to two firms, as reported by the Petrol and Mining minister, Elizabeth James Bol.

Commodities

In Asia, crude oil for October delivery is trading 0.6% or $0.62 higher at $98.93 per barrel.

Yesterday, crude oil for October delivery advanced 1.3% or $1.30 to $98.31 per barrel, after the US Federal Reserve opted for a third round of quantitative easing to bolster the economic recovery.

Oil prices also rose, on news that Middle East unrest had spread to Yemen raising concern over crude oil supply disruption.

Gold for immediate delivery is trading 0.3% higher today, at $1,772.77 per ounce.

Gold for December delivery settled up 2.2% or $38.40 at $1,772.10 per ounce yesterday, after the US Federal Reserve revealed a plan to expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt each month to boost the US economy.

Gold prices also rose, as dismal US initial jobless claims data spurred demand for the precious metal as a safe haven asset.

Yesterday, copper 3-month futures fell 0.5% or $40.0, to close at $8,075.50 /MT. Aluminium 3-month futures dropped 0.3% or $5.0, to close at $1,950.00 /MT.

Currencies

At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.6178, slightly higher against the EUR at €1.2437, and 0.1% higher against the JPY at ¥125.55.

The EUR is trading 0.1% higher against the USD at $1.3007, ahead of the release of eurozone consumer prices and employment change data due later in the day and as the USD continued its downturn following the announcement of additional quantitative easing by the US Fed yesterday. Euro-area Finance Ministers and central-bank officials would hold a two-day policy meeting starting today in Cyprus to discuss the next steps in tackling the region’s debt crisis.

The EUR is trading 0.1% higher against the JPY at ¥100.97, as most Asian equity markets traded higher, increasing the demand for high yielding assets.

The JPY is trading lower against the USD, after Japan’s Finance Minister Jun Azumi signaled his willingness to intervene the currency market to weaken the local currency.

Yesterday, the USD ended lower against the all major counterparts, after the US Federal Reserve announced its plans to buy $40.0 billion of agency mortgage-backed securities each month until the outlook for the labour market improves. The Fed also stated that it would probably hold the federal funds rate near zero “at least through mid-2015.” Dismal US initial jobless claims data also pushed the USD lower.

Macroeconomic Snapshot

In its monthly bulletin released, the ECB stated that the debt-to-GDP ratio would be sustainable and fall at some point for both Spain and Italy, if the countries successfully achieve their fiscal consolidation targets.

Germany's IfW think tank has trimmed its forecast for economic growth to 0.8% this year, marginally below the prior estimate of 0.9%.

The Federal Reserve has forecasted 2.5% to 3.0% annual US GDP growth for 2013, up from 2.2% to 2.8% growth predicted in June.

On month-on-month basis, the producer price index (PPI) in the US rose 1.7% in August, compared to a 0.3% increase recorded in July.

For the week ended 8 September 2012, initial jobless claims in the US rose to 382,000, from the previous week's revised figure of 367,000.

The US Federal Reserve (Fed) took aggressive new steps to stimulate the sluggish US economy, announcing its plans to buy $40 billion of agency mortgage-backed securities each month.

 

Source: www.etxcapital.com