September 20, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 20.2 points lower.

At 0500 BST today, German DAX Xetra 30 futures are trading 15.6 points down, while French CAC-40 futures are trading 10.8 points lower.

At 0500 BST today, DJIA futures are trading 25.0 points down.

Nikkei 225 is trading 0.7% lower, at 9,167.8.

In Asia, crude oil for October delivery is trading 0.3% or $0.25 lower at $91.73 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.6215, 0.2% higher against the EUR at €1.2457, and 0.2% lower against the JPY at ¥127.00.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 25.0 points down.

Yesterday, DJIA edged up 0.1% to settle at 13,578.0. NASDAQ inched 0.2% higher to end at 3,182.6. S&P 500 rose 0.1% to close at 1,461.1.

US stocks ended modestly higher yesterday, as existing US homes sales rose in August to a two-year high and as the Bank of Japan stepped up its bond buying programme. However, lower-than-expected growth in housing starts and a dip in building permits for August capped gains.

General Mills rose 1.8%, after its first quarter earnings surpassed market expectation and as it reiterated its full-year guidance. Lennar, Toll Brothers, DR Horton, Pulte and Beazer Homes gained between 1.9% and 6.2%, as existing home sales jumped 7.8% in August.

Groupon surged 13.9%, as it launched a mobile payment service, allowing merchants to accept cards using an iPhone or iPod Touch.

After the closing bell, Bed Bath & Beyond declined 4.4%, as its fiscal second-quarter results missed market expectation, while rail operator, Norfolk Southern fell 5.1%, after it warned that its third-quarter earnings would miss market expectation.

Asian Market Snapshot

Asian stock markets are trading lower this morning, amid concerns about the global economy, after Japan's exports fell for the third straight month in August and following lackluster manufacturing data from China.

In Japan, Kyocera slipped in early trade following weak Japanese exports data. All Nippon Airways lost value, after Nomura Securities cut its price target on the stock.

In Hong Kong, China Grand Forestry Green Resources traded lower after Tongdao Dong Autonomous County People's Government cancelled five of the forest right certifications on the forests in Hunan province.

In South Korea, Samsung Electronics lost values, after a federal judge refused to rescind a court order banning Samsung Electronics from selling its Galaxy Tab 10.1 computer in the US. SK Innovation and S-Oil traded lower following a drop in crude oil prices.

Nikkei 225 is trading 0.7% lower, at 9,167.8. Hang Seng index is trading 0.5% down, at 20,738.4, while the Kospi index is trading 0.6% lower, at 1,996.4.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 20.2 points lower.

Norish announced that through its subsidiary Roebuck Investments Limited, it has agreed to acquire Townview Foods Limited, a meat trading business, for about £8.25 million.

Wm Morrison Supermarkets announced that it has purchased through Jefferies International Limited 250,000 ordinary shares at an average price of 293.242 pence per share.

European Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 20.2 points lower.

Norish announced that through its subsidiary Roebuck Investments Limited, it has agreed to acquire Townview Foods Limited, a meat trading business, for about £8.25 million.

WM Morrison Supermarkets announced that it has purchased through Jefferies International Limited 250,000 ordinary shares at an average price of 293.242 pence per share .

Commodities

In Asia, crude oil for October delivery is trading 0.3% or $0.25 lower at $91.73 per barrel.

Yesterday, crude oil for October delivery dipped 3.5% or $3.31 to close at $91.98 per barrel, after the Energy Information Administration (EIA) report showed that US crude oil stockpiles rose by a higher-than-expected 8.5 million barrels last week, increasing concern about demand outlook.

Crude oil prices were under pressure after Saudi Arabia’s oil minister pledged to release more crude oil into the market in a bid to moderate high oil prices. Additionally, an EIA survey showed Gulf Coast plants have fully recovered from disruptions caused by Hurricane Isaac in late August further weighing on oil prices.

Gold for immediate delivery is trading 0.2% lower today, at $1,767.70 per ounce.

Gold for December delivery settled up $0.50 at $1,771.70 per ounce yesterday, after the Bank of Japan announced that it would boost to its asset-purchase programs and expectations China would follow global central banks in easing monetary policy to boost its slowing economy. However, gains were capped on profit booking by investors.

Yesterday, copper 3-month futures gained 1.0% or $80.5, to close at $8,330.50 /MT. Aluminium 3-month futures rose 1.5% or $30.0, to close at $2,055.00 /MT.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.6215, 0.2% higher against the EUR at €1.2457, and 0.2% lower against the JPY at ¥127.00 ahead of data that is forecasted to show UK retail sales contracted in August.

The EUR is trading 0.3% lower against the USD at $1.3016, before Spain auctions 3-year and 10-year bonds today.

The EUR is trading 0.4% lower against the JPY at ¥101.95, before reports today that are forecasted to show European services and manufacturing contracted in September, adding to signs the region’s debt crisis is weighing on economic growth.

The JPY is trading higher against the USD, amid speculation the Bank of Japan’s additional asset purchase program would do little to spur economic growth as geopolitical tensions over disputed islands with China and weak global demand weigh on exports. Japan’s exports fell 5.8% in August from a year earlier, the third straight decline.

The NZD is trading higher against all of its major counterparts after data showed the nation’s second-quarter economic growth surpassed market expectations. However, gains were capped after the nation’s annual current-account deficit widened to the most in three years.

Yesterday, the EUR ended higher against the USD and the GBP. The EUR was trading lower in the earlier session after German officials sought to reject proposals for a European banking union and a supervisory role for the European Central Bank.

The JPY ended higher against the USD even after the Bank of Japan announced an expansion in its asset-purchase program.

Macroeconomic Snapshot

Bank of England (BoE) policymakers unanimously decided to maintain quantitative easing at £375.0 billion and the interest rate unchanged at 0.50%.

On a seasonally adjusted monthly basis, construction output in the eurozone slipped 0.3% in July, following a 0.6% decline recorded in June.

On a seasonally adjusted basis, the housing starts in the US rose 2.3% to an annual rate of 750,000 in August, compared to a downwardly revised rate of 733,000 recorded in July.

Existing home sales in the US jumped 7.8% to an annual rate of 4.82 million in August, from 4.47 million recorded in July.

On a seasonally adjusted basis, new building permits in the US fell 1.0% to an annual rate of 803,000 in August, compared to the revised rate of 811,000 reported in July.

China HSBC flash PMI rose to 47.8 from 47.6 in September, even though output dipped to its lowest level in 10 months.

 

Source: www.etxcapital.com