September 18, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 16.4 points higher.

At 0500 BST today, German DAX Xetra 30 futures are trading 7.2 points up, while French CAC-40 futures are trading 2.8 points higher.

At 0500 BST today, DJIA futures are trading 2.0 points higher.

Nikkei 225 is trading 0.1% higher, at 9,173.5.

In Asia, crude oil for October delivery is trading 0.5% or $0.48 higher at $97.10 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.6249, 0.1% higher against the EUR at €1.2399, and 0.1% lower against the JPY at ¥127.70.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 2.0 points higher.

Yesterday, DJIA edged down 0.3% to settle at 13,553.1. NASDAQ inched 0.2% lower to close at 3,178.7. S&P 500 ticked down 0.3% to end at 1,461.2.

US stocks eased yesterday, snapping a four-day rally, after factory activity in the New York area dropped to its lowest level in nearly 3-1/2 years and as eurozone finance ministers failed to agree on terms of bailout requests and role of the European Central Bank at a meeting in Cyprus last week.

United States Steel and AK Steel Holding slipped 4.7% and 5.8%, respectively, while Cliffs Natural Resources slipped 7.0%, as JP Morgan downgraded its rating on these stocks to “Neutral” from “Overweight”.

Netflix dropped 5.8%, after Macquarie initiated coverage on the stock with an “Underperform” rating.

General Electric edged down 0.3%, after the National Transportation Safety Board recommended inspection for all new Boeing 787 and 747-8 aircraft with General Electric engines. Boeing dropped 1.9%.

After the closing bell, Apple edged up 0.3%, as it stated iPhone 5 orders were more than double the previous record of 1 million iPhones ordered on the first day. OCZ Technology Group slumped 8.5%, following a management restructuring.

Asian Market Snapshot

Asian markets are trading mostly lower this morning, amid concerns about a slowdown in the US and fading hopes of a resolution to the eurozone debt crisis.

In Japan, Sony and Olympus both traded higher, amid report that the former is in final talks to invest in the latter. Secom added value, after the Nikkei business daily reported that Tokyo Electric Power is close to selling a majority stake in its data centre unit to Secom for around ¥50 billion.

In Hong Kong, Samsonite International fell after CVC Capital and RBS sold off additional stake in the company.

In South Korea, Hyundai Marine & Fire Insurance lost value, amid concern Typhoon Sanba had caused significant property damage.

Nikkei 225 is trading 0.1% higher, at 9,173.5. Hang Seng index is trading 0.1% down, at 20,642.8, while the Kospi index is trading 0.1% lower, at 2,001.0.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 16.4 points higher.

The Financial Times reported that EasyJet, in a hope to profit from the government’s cost-cutting drive, has inked a deal with the House of Commons’ travel agency that would allow MPs and their staff to book journeys on the budget airline.

The Compass Group, through Morgan Stanley Securities Limited, repurchased 325,000 ordinary shares at a price of 710.01p per share.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 7.2 points up, while French CAC-40 futures are trading 2.8 points higher.

Daimler truck Chief Andreas Renschler forecasted strong growth in the number of trucks on the roads in the future as road freight transportation triples by the year 2050.

The French Energy and Economics Ministry announced that the price of gas would be hiked by 2% on 1st October, rejecting GDF Suez's request for a 7% hike.

Commodities

In Asia, crude oil for October delivery is trading 0.5% or $0.48 higher at $97.10 per barrel.

Yesterday, crude oil for October delivery dropped 2.4% or $2.38 to $96.62 per barrel.  Worries over demand outlook, after a report revealed that manufacturing in the New York region contracted more than estimated in September and as the dollar recovered against the euro, reducing the demand for oil as an alternative investment.

Prices plummeted in the final hours of trading with some analysts citing the expiration of the October WTI option contracts as the reason for the plunge. Traders also speculate of an erroneous trade or a computer algorithm gone awry.

Gold for immediate delivery is trading 0.2% lower today, at $1,757.25 per ounce.

Gold for December delivery settled down 0.1% or $2.10 at $1,770.60 per ounce yesterday, as investors decided to book profit following a strong rally last week following the US Federal Reserve’s latest bond-buying plan.

Yesterday, copper 3-month futures fell 1.1% or $91.0, to close at $8,312.00 /MT. Aluminium 3-month futures dropped 4.2% or $85.0, to close at $2,090.00 /MT. Copper futures dropped as weak US manufacturing data forced some investors to cash in gains following the metal’s rally last week.

Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.6249, 0.1% higher against the EUR at €1.2399, and 0.1% lower against the JPY at ¥127.70, ahead of the release of UK consumer prices and retail prices data due later in the day.

The EUR is trading slightly lower against the USD at $1.3105, ahead of data which is speculated to show that German investor confidence dropped to its lowest level in the year in September.

The EUR is trading 0.1% lower against the JPY at ¥102.99. However, demand for the JPY was limited, as investors cautiously await the outcome of BoJ monetary policy meeting, amid mounting speculation that the BoJ would expand monetary stimulus to stem the currency’s strength that affects exporters.

Yesterday, the USD closed higher against the EUR, ending its last week’s downturn following US Federal Reserve’s program for a third round of quantitative easing. The EUR declined against the USD, as investors await further clarity on Spain’s measures to tackle its debt crisis.

The JPY ended lower against the USD and the EUR, amid rising speculation of fresh monetary easing by the Bank of Japan and as tensions between Japan and China over disputed islands intensified.

The CAD ended lower against the USD, after a report indicated that Canadian existing home sales dropped the most in more than two years in August and as lower commodity prices decreased the demand for the commodity linked currency.

The WON ended lower against the USD, after the Korea Development Institute lowered its economic growth forecast for 2012 to 2.5% from 3.6% projected in May.

Macroeconomic Snapshot

On a seasonally adjusted basis, the eurozone current account surplus narrowed to €9.7 billion in July, from a revised surplus of €14.3 billion recorded in June.

On a seasonally adjusted basis, the eurozone trade surplus narrowed to €7.90 billion in July, from a revised €9.30 billion surplus in June.

The Federal Reserve Bank of New York reported that its general business conditions index fell to a reading of -10.41 in September from -5.85 in August.

In its quarterly review, the Bank of International Settlements (BIS) stated that the volatility of risky assets remained “extraordinarily subdued”, given the concerns about the ongoing euro area debt crisis and the poor outlook for economic growth.

The European Central Bank governing council member Panicos Demetriades stated that direct recapitalization of Cypriot banks through the European Stability Mechanism (ESM) should start at the beginning of next year.

 

Source: www.etxcapital.com