Tuesday, 25 September 2012

September 25, 2012 Financial Market Summary

At 0500 BST today, FTSE 100 futures are trading 11.2 points higher.
At 0500 BST today, German DAX Xetra 30 futures are trading 26.0 points up, while French CAC-40 futures are trading 9.3 points higher.
At 0500 BST today, DJIA futures are trading 30.0 points up.
Nikkei 225 is trading 0.3% higher, at 9,095.3.
In Asia, crude oil for November delivery is trading 0.4% or $0.34 higher at $92.27 per barrel.
At 0400 BST today, the GBP is trading slightly higher against the USD at $1.6232, marginally higher against the EUR at €1.2539, and flat against the JPY at ¥126.35.
US Market Snapshot
At 0500 BST today, DJIA futures are trading 30.0 points up.
Yesterday, DJIA edged down 0.2% to end at 13,558.9. NASDAQ shed 0.6% to settle at 3,160.8. S&P 500 slipped 0.2% to close at 1,456.9.
US stocks closed lower yesterday, as a discord between France and Germany over a timeframe for starting joint oversight of Europe’s banking sector soured market sentiment. Additionally, dismal economic reports from Germany and China weighed on investor sentiment.
Apple dropped 1.3%, amid reports of a brawl at one of its main manufacturing plants in China, raising concerns over its ability to meet escalating demand. Caterpillar dropped 0.9%, after the company cut its forecast for 2015 earnings.
Dell and Hewlett- Packard dropped 2.0% and 2.2%, respectively, as Evercore Partners cut its price targets on both companies. Facebook slumped 9.1%, after Barron's snubbed the stock, questioning the company’s value, amid persistent concerns about its mobile growth.
After the closing bell, Red Hat fell 2.9%, as its second-quarter earnings trailed market expectations. Neptune Technologies & Bioresources lost 3.8%, as it planned to offer an undisclosed number of shares.
Asian Market Snapshot
Asian markets are trading mostly lower this morning, tracking overnight losses on Wall Street, amid renewed concerns about global economic growth. However, markets in Japan rose before a deadline on dividends.
In Japan, Sharp rose after it submitted a restructuring plan to its creditors which projected a slight profit next year compared to a loss this year. Toyota Motors rose as it planned to expand its range of hybrid vehicles.
In Hong Kong, Standard Chartered fell, amid report that Tenmasek Holdings might sell its stake in the lender.
In South Korea, Hotel Shilla fell amid expectations of poor third-quarter earnings. LG Display lost values, after Apple reported debut sales for the iPhone 5 that fell short of some analysts’ estimates.
Nikkei 225 is trading 0.3% higher, at 9,095.3. Hang Seng index is trading 0.1% down, at 20,674.5, while the Kospi index is trading 0.4% lower, at 1,995.9.
UK Market Snapshot
At 0500 BST today, FTSE 100 futures are trading 11.2 points higher.
The Financial Times reported that Singapore investment fund Temasek is seeking potential buyers for its 18.0% stake in Standard Chartered, valued at around £6 billion.
Glencore International entered into an agreement to boost its stake in Kazakhstan’s largest integrated zinc producer, Kazzinc from 50.7% to 69.61% through the purchase 18.9% stake worth $1.395 billion, from partner Verny Capital.
European Market Snapshot
At 0500 BST today, German DAX Xetra 30 futures are trading 26.0 points up, while French CAC-40 futures are trading 9.3 points higher.
German automotive parts supplier Schaeffler AG is mulling to raise around €1.65 billion by selling a 10.38% stake in Continental AG thereby reducing its stake to 49.9%.
√Člectricit√© de France (EDF) has signed a contract with Areva to obtain more than 30 000 tons of natural uranium for the period from 2014 to 2035.
Commodities
In Asia, crude oil for November delivery is trading 0.4% or $0.34 higher at $92.27 per barrel.
Yesterday, crude oil for November delivery declined 1.0% or $0.96 to $91.93 per barrel, as disagreement among European officials over the handling of region’s debt crisis and an unexpected decline in German business sentiment reignited worries over Europe’s ailing economy and demand prospect for crude oil. Oil prices also fell, as a stronger dollar reduced crude oil’s demand as an alternative investment.
Gold for immediate delivery is trading 0.1% higher today, at $1,765.60 per ounce.
Gold for December delivery settled down 0.8% or $13.40 at $1,764.60 per ounce yesterday, amid profit-booking following the recent rally in gold prices and as the dollar strengthened against the euro amid renewed worries over eurozone debt crisis.
Yesterday, copper 3-month futures fell 1.4% or $112.5, to close at $8,168.00 /MT. Aluminium 3-month futures dropped 2.2% or $45.0, to close at $1,980.00 /MT.
Currencies
At 0400 BST today, the GBP is trading slightly higher against the USD at $1.6232, marginally higher against the EUR at €1.2539, and flat against the JPY at ¥126.35, ahead of the release of UK BBA mortgage approvals data for August.
The EUR is trading slightly higher against the USD at $1.2946 and flat against the JPY at ¥100.78. However, gains were capped, ahead of reports which are expected to show that French business confidence worsened in September and consumer sentiment in Germany and Italy remained stagnated. Investors are also expected to keep close attention on a meeting between German Chancellor Angela Merkel and ECB President Mario Draghi to get further direction.
Yesterday, the EUR ended lower against the USD, after a report revealed that German business confidence unexpectedly dropped to the lowest level since March 2010 in September and on news of disagreement between German Chancellor Angela Merkel and French President Francois Hollande over tighter integration of Europe’s banking system.
The USD and JPY closed higher against the other major currencies, as intensifying concerns over euro-zone debt crisis spurred investment in safe haven currencies.
The AUD and NZD ended lower against the USD, amid rising worries over economic growth in China, their biggest trading partner. The AUD and NZD fell, as China’s Economic Information Daily stated that downward pressure on the Asian nation’s economy was increasing. Separately, a survey modelled on the US Federal Reserve’s Beige Book showed China’s manufacturers and retailers are less optimistic about sales than they were three months ago.
Macroeconomic Snapshot
Markit household finance index for the UK slipped to a reading of 38.4 in September, from 38.9 recorded in August.
The Ifo Business Climate Index for Germany eased to 101.4 in September from a reading of 102.3 recorded in August.
US Chicago Fed’s national activity index fell to a reading of -0.87 in August, down from a revised reading of -0.12 recorded in July.
Dallas Fed manufacturing business index rose to a reading of -0.9 in September, following a reading of -1.6 recorded in August.
On a seasonally adjusted yearly basis, the corporate services price index (CSPI) in Japan dropped 0.3% in August, compared to a revised drop of 0.3% recorded in July. 
On a same-store basis, super market sales in Japan in August dropped 1.3% from a year ago, after recording a drop of 4.9% in the previous month.
 

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