September 19, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 4.7 points higher.

At 0500 BST today, German DAX Xetra 30 futures are trading 15.3 points up, while French CAC-40 futures are trading 15.4 points higher.

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

Nikkei 225 is trading 0.2% higher, at 9,141.7.

In Asia, crude oil for October delivery is trading 0.3% or $0.29 higher at $95.58 per barrel.

At 0400 BST today, the GBP is trading slightly lower against the USD at $1.6242, marginally lower against the EUR at €1.2449, and 0.2% lower against the JPY at ¥127.68.

US Market Snapshot

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

Yesterday, DJIA edged up 0.1% to settle at 13,564.6. NASDAQ slipped marginally to end at 3,177.8. S&P 500 fell 0.1% to close at 1,459.3.

US markets closed mostly lower yesterday, as a profit warning by FedEx and intensifying concerns about the European debt-crisis overshadowed data that showed home-builder sentiment improved in September.

FedEx dropped 3.1%, as it cut its profit estimates for its fiscal year 2013, amid fall in first-quarter profit. Peer, UPS edged down 0.1%, as FedEx’s guidance weighed on the stock.

Advanced Micro Devices declined 9.7%, after it announced the departure of its CFO, Thomas Seifert. Office furniture manufacture, HNI tumbled 15.1%, as it lowered its third-quarter earnings and revenue guidance.

Clearwire slumped 10.4%, after Morgan Stanley issued a downbeat note on the stock, citing liquidity issues. Bed Bath & Beyond dropped 3.4%, following a downgrade to “Hold” from “Buy” at Oppenheimer.

After the closing bell, railroad companies, CSX, Norfolk Southern and Union Pacific dipped between 0.5% and 0.7%, as UBS downgraded its rating on these stocks to “Neutral” from “Buy”. Approach Resources fell 1.2%, as it intends to offer 5 million shares as it seeks to raise funds.

Asian Market Snapshot

Asian stock markets are trading mostly higher this morning, amid hopes of monetary stimulus from the Bank of Japan and after the governor of the People’s Bank of China pledged to maintain stability of its monetary policies.

In Japan, Nissan Motor advanced, as it resumed operations in China. Japan Airlines opened higher, on its Tokyo trading debut.

In Hong Kong, Fosun International added value, after it received official approval from the China Insurance Regulatory Commission for its proposed joint venture with The Prudential Insurance Company of America.

In South Korea, Samsung Electronics paced losses, amid report the firm mulled to cut investment in the semiconductor business by half next year.

Nikkei 225 is trading 0.2% higher, at 9,141.7. Hang Seng index is trading 0.3% up, at 20,661.6, while the Kospi index is trading 0.5% lower, at 1,994.7.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 4.7 points higher.

The Financial Times reported that BP is in advanced negotiations to sell its Texas City refinery to Marathon Petroleum which could fetch the company about $2.5 billion.

Lonmin platinum mine workers in South Africa have ended their strike and would return to work in return for pay rises of between 11-22% and additional one-off bonuses.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 15.3 points up, while French CAC-40 futures are trading 15.4 points higher.

Siemens plans to lay off about 615 workers in Iowa, Kansas, and Florida in part due to changing market conditions and uncertainty about a tax credit for new wind turbine installations.

Zodiac Aerospace reported 25% increase in revenues to €3.438 billion for the year ended 31 August on the back of strong performance at its airplane cabin interior segment.

Commodities

In Asia, crude oil for October delivery is trading 0.3% or $0.29 higher at $95.58 per barrel.

Yesterday, crude oil for October delivery dropped 1.4% or $1.33 to $95.29 per barrel, after a Persian Gulf official stated that Saudi Arabia is working to lower oil prices and is producing around 10 million barrels per day. Oil prices also fell, as signs of a slowdown in the global economic growth raised worries over demand outlook.

Later in the day, the American Petroleum Institute reported that crude oil inventories increased 2.43 million barrels to 361.5 million last week.

Gold for immediate delivery is trading 0.1% lower today, at $1,766.90 per ounce.

Gold for December delivery settled up 0.1% or $0.60 at $1,771.20 per ounce yesterday, with the metal struggling to find clear direction as investors took a breather following the recent rally.

However, gains were capped, as the dollar rose against the major currencies, decreasing the demand for the precious metal as a hedge against inflation.

Yesterday, copper 3-month futures fell 0.8% or $62.0, to close at $8,250.00 /MT. Aluminium 3-month futures dropped 3.1% or $65.0, to close at $2,025.00 /MT.

Currencies

At 0400 BST today, the GBP is trading slightly lower against the USD at $1.6242, marginally lower against the EUR at €1.2449, and 0.2% lower against the JPY at ¥127.68. Investors look ahead to the Bank of England meeting minutes.

The EUR is trading marginally higher against the USD at $1.3047, as investors remain cautious ahead of Spain’s bond auctions scheduled tomorrow.

The EUR is trading 0.2% lower against the JPY at ¥102.56, ahead of a report tomorrow that might show services and manufacturing industries shrank in the eurozone for an eighth month.

The AUD is trading lower against most of major currencies, ahead of reports that might add to signs global manufacturing is slowing, damping prospects for the South Pacific nation’s resource exports.

Yesterday, the USD ended higher against the EUR and most of other major counterparts, investors remain skeptical about the effectiveness of the US Fed’s decision to embark on QE3 and Spain’s stance on aid package, increasing demand for safe haven assets.

The EUR ended lower against the USD and the GBP, amid concerns that Spain would delay seeking a bailout and after data revealed that German investor sentiment remained negative in September. A separate report revealed that UK consumer prices rose in line with market estimates in August.

The JPY closed lower against the USD, amid speculation the Bank of Japan could take steps to weaken the local currency at its meeting this week.

The AUD closed lower against most of its major counterparts, as the Reserve Bank of Australia meeting minutes spurred speculation the central bank might cut interest rates if necessary.

Macroeconomic Snapshot

The annual rate of inflation in the UK eased to 2.5% in August from 2.6% in July.

The UK DCLG house price index rose 2.0% in July, following a 2.3% increase recorded in the previous month

On a year-on-year basis, the retail price index in the UK rose to a seasonally adjusted 2.9% in August, compared to a 3.2% increase recorded in July.

ZEW’s economic expectations index in Germany rose to a reading of -18.2 in September from a reading of -25.5 recorded in August.

ZEW’s economic expectations index in the eurozone improved to -3.8 in September from a reading of -21.2 recorded in August.

The NAHBs’ housing market index for the US rose to a reading of 40.0 in September from a reading of 37.0 recorded in August.

On a seasonally adjusted basis, the current account deficit in the US narrowed to $117.4 billion in 2Q FY2012, from a revised deficit of $133.6 billion in the previous quarter.

 

Source: www.etxcapital.com