July 09, 2012 Financial Market Summary

DJIA shed 1.0% to settle at 12,772.5. NASDAQ slumped 1.3% to close at 2,937.3. S&P 500 slipped 0.9% to end at 1,354.7.

Nikkei 225 index is trading 0.8% lower at 8,944.9.

FTSE 100 slid 0.5% to close at 5,662.6. FTSEurofirst 300 index dropped 1.0% to 1,033.8.

In Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $84.82 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5493, marginally lower against the EUR at €1.2606, and 0.1% higher against the JPY at ¥123.43.

US Market Snapshot

US markets retreated on Friday, as slower-than-expected growth in June pay-rolls reinforced concern that global growth was faltering. Moreover, worries over the health of eurozone continued to weigh on market sentiment, as yields on benchmark Spanish bonds hovered around 7%. Acme Packet and Informatica plummeted 14.5% and 27.6%, respectively, after they offered a disappointing guidance for their second quarter, amid a slowdown in global growth. Seagate Technology slid 0.5%, after it cut its revenue and gross margin expectations for its fourth-quarter. Freeport-McMoRan Copper & Gold and Alcoa slipped 1.3% and 2.2%, respectively, while Schlumberger dropped 1.4%, as commodity prices tumbled. Navistar International dropped 15.2%, after it stated that it would incur additional costs to get a crucial new engine approved by federal regulators.

DJIA shed 1.0% to settle at 12,772.5. NASDAQ fell 1.3% to close at 2,937.3. S&P 500 slipped 0.9% to 1,354.7.

Asian Market Snapshot

Asian markets are trading lower this morning, as disappointing US jobs data, higher-than-expected decline in Japanese machinery orders in May and bearish comments about China’s economy by Premier Wen Jiabao, weighed on market sentiment. In Japan, construction equipment maker, Komatsu lost value, as Japan’s machinery orders dropped in May. Tokyo Electron fell after JPMorgan Chase downgraded the stock to “Neutral” from “Overweight”. In Hong Kong, Angang Steel traded lower, after the company forecasted a net loss of around ¥1.976 billion in the first-half of 2012. In South Korea, computer SK C&C lost value, after the company was fined a $30.4 million by South Korea's Fair Trades Commission. Samsung Electronics lost values on worries about weakening demand.

Nikkei 225 index is trading 0.8% lower at 8,944.9. Hong Kong index is trading 1.5% lower, at 19,495.1, while the Kospi index is trading 1.3% lower, at 1,834.4..

UK Market Snapshot

UK markets closed lower on Friday, following disappointing US jobs report. Building materials group, CRH, with significant exposure to Poland, declined 5.2%, after data from the Polish Cement Association showed 20% YoY decline in sales in June. Anglo American, Rio Tinto and Kazakhmys dropped between 2.7% and 4.4%, as base metal prices slumped on renewed demand concerns. Fresnillo, Randgold Resources and Polymetal International slipped 1.1%, 1.4% and 3.3%, as precious metal prices dipped. Barclays slipped 2.1%, as Bernstein cut its rating from “Outperform” to “Market Perform”. Marks & Spencer declined 3.4%, after the Financial Times stated that the firm would report its worst quarterly trading in three years. Interdealer broker, ICAP slipped 3.8%, following a downgrade to “Hold” from “Buy” at Numis Securities.

FTSE 100 slid 0.5% to close at 5,662.6, while FTSE 250 also shed 0.5% to settle at 11,070.6.

European Market Snapshot

Other European markets closed lower on Friday, as sluggish US June payrolls data, surge in Spanish bond yields and downbeat comments on global growth outlook by the International Monetary Fund head Christine Lagarde overshadowed stronger-than-expected German industrial production data. BBVA sank 5.1%, after HSBC cut its recommendation on the stock to “Neutral” from “Overweight”, while Banco Popular Espanol declined 4.1%, after the same broker downgraded the stock to “Underweight” from “Neutral”. Peugeot tumbled 7.7%, after the company reported a decline in its first-half sales on an annual basis, while BMW lost 3.9%, after Morgan Stanley downgraded the stock to “Equal weight” from “Overweight”. Insurer, Delta Lloyd dropped 4.4%, after Aviva cut its stake in the company below 20.0%.

FTSEurofirst 300 index dropped 1.0% to 1,033.8. German DAX Xetra 30 fell 1.9% to 6,410.1. French CAC-40 closed 1.9% lower at 3,168.8.

Commodities

In Asia, crude oil for August delivery is trading 0.4% or $0.37 higher at $84.82 per barrel. On Friday, crude oil for August delivery dropped 3.2% or $2.77 to settle at $84.45 per barrel, amid fuel energy demand growth worries, after reports showed nonfarm payrolls for June grew less-than-expected. Crude oil prices were also under pressure as the dollar rose against the euro.

Gold for immediate delivery is trading 0.2% lower today, at $1,581.25 per ounce. Gold for August delivery lost 1.9% or $30.50 to settle at $1,578.90 per ounce on Friday, as the dollar rose against the major currencies, following downbeat US jobs data, lowering demand for the precious metal as an alternative investment.

Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5493, marginally lower against the EUR at €1.2606, and 0.1% higher against the JPY at ¥123.43.

The EUR is trading 0.2% higher against the USD at $1.2292 and 0.2% higher against the JPY at ¥97.92.  Earlier, the currency was trading lower, before European Central Bank President Mario Draghi addresses the European parliament today and as the regional Finance Ministers meet today to discuss implementation of the measures agreed on at the summit.

The JPY is trading lower against most of its major peers, after Japan reported smallest current-account surplus in May since at least 1985 and biggest fall in machinery orders in five years.

The AUD is trading lower against most of its major peers amid concerns China’s economy is faltering and as Asian equity markets fell, decreasing demand for higher-yielding currencies.

On Friday, the USD closed higher against the EUR, after a report showed weaker-than-expected jobs growth in the US in June, spurring demand for the safe haven assets.

The AUD and NZD ended lower against the USD, amid concerns about China’s economy following downbeat comments from the Chinese Premier, Wen Jiabao.

July 06, 2012 Financial Market Summary

DJIA slid 0.4% to end at 12,896.7. NASDAQ closed unchanged at 2,976.1. S&P 500 shed 0.5% to close at 1,367.6.

Nikkei 225 index is trading 0.4% lower at 9,047.5.

FTSE 100 edged up 0.1% to settle at 5,692.6. FTSEurofirst 300 index eased 0.1% to 1,044.5.

In Asia, crude oil for August delivery is trading 1.1% or $0.98 lower at $86.24 per barrel.

At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5525, 0.1% higher against the EUR at €1.2537, and 0.1% higher against the JPY at ¥124.10.

US Market Snapshot

US markets slipped yesterday, after data showed that the US services sector slowed to a two-and-half year low in June and amid speculation that the cut in interest rate by the ECB would have limited impact on the eurozone economy. Positive US private-sector payrolls and weekly jobless claims data failed to cheer investors as they remained cautious ahead of the US jobs report on Friday. Goldman Sachs, Citigroup, Bank of America, Morgan Stanley and JPMorgan Chase dropped between 2.7% and 4.2%, amid broader economic and regulatory uncertainty. A broker’s downgrade to “Hold” from “Outperform” also weighed on JP Morgan. Among retailers, Buckle and Fred's lost 3.0% and 4.4% respectively, after reporting disappointing June same-store sales data.

DJIA slid 0.4% to end at 12,896.7. NASDAQ closed unchanged at 2,976.1. S&P 500 shed 0.5% to 1,367.6

Asian Market Snapshot

Asian markets are trading lower this morning, taking cues from overnight losses on Wall Street, as interest-rate cuts in Europe and China failed to cheer investors. Investors also remain cautious ahead of the US jobs report today. In Japan, Nomura Holdings and Daiwa Securities traded lower, on news that Japanese regulators are investigating the possibility of insider trading at major brokerages. In Hong Kong, Bank of China, Bank of Communications and HSBC Holdings paced declines, amid concerns they would face margin pressure as China eased policy. In South Korea, Samsung Electronics paced lower, as investors booked profits, after the company forecasted record quarterly earnings. Kumho Petro Chemical dropped after analysts forecasted company’s second-quarter operating profit to fall short of estimates.

Nikkei 225 index is trading 0.4% lower at 9,047.5. Hang Seng index is trading 0.4% lower, at 19,731.8, while the Kospi index is trading 0.8% lower, at 1,860.6.

UK Market Snapshot

UK markets ended on a mixed note yesterday, with the FTSE 100 index eking out modest gains, after the Bank of England augmented the size of its quantitative-easing program, while the ECB and the POBC trimmed their interest rates, offsetting continued concerns about the euro-area. Engineering group, GKN surged 13.1%, leading the gainers on the FTSE 100 index, as it acquired the aero engine division of AB Volvo for £633million. Xstrata gained 3.1%, as it postponed a shareholder meeting due July 12 to approve its merger with Glencore International. Tate & Lyle rose 1.6%, after Exane BNP Paribas raised its recommendation on the shares to “Outperform” from “Neutral”. Man Group slipped declined 6.4%, amid worries over its second-quarter performance. Hays and Michael Page International dropped 3.5% and 4.5%, respectively, weighed down by a disappointing trading update from its sector peer Robert Walters.

FTSE 100 edged up 0.1% to settle at 5,692.6, while FTSE 250 ticked down 0.3% to close at 11,130.9.

European Market Snapshot

Other European markets slid yesterday, after European Central Bank President Mario Draghi warned about downside risks to the eurozone economies, overshadowing interest-rate cuts in Europe and China and Bank of England’s decision to increase its asset purchase program. A rise in Spanish and Italian bond yields at an auction also weighed on market sentiment.  UniCredit, Commerzbank and Banco Santander sank between 1.7% and 5.1%, as a rise in Italian and Spanish borrowing weighed on investor sentiment. Merck slid 2.3%, after its Erbitux cancer drug failed to show any benefit to patients in phase III clinical trials. Total fell 1.1%, tracking lower crude oil prices. However, Volkswagen rallied 6.1%, after it agreed to acquire the controlling stake in Porsche’s automotive business.

FTSEurofirst 300 index eased 0.1% to 1,044.5. German DAX Xetra 30 declined 0.4% to close at 6,535.6. French CAC-40 closed 1.2% lower at 3,229.4.

Commodities

In Asia, crude oil for August delivery is trading 1.1% or $0.98 lower at $86.24 per barrel. Yesterday, crude oil for August delivery dropped 0.5% or 44 cents, to settle at $87.22, as the dollar appreciated against the euro and as investors speculated monetary easing by the European Central Bank, the Bank of England, and the People's Bank of China signals global concerns of an economic slowdown. However, declines were limited after the Energy Information Administration reported higher-than-expected decline in the US crude oil inventories for the week ended June 29.

Gold for immediate delivery is trading 0.1% lower today, at $1,605.82 per ounce. Gold for August delivery declined 0.8% or $12.40 to settle at $1,609.40 per ounce yesterday, as the dollar rose against the major currencies and as investors speculated that the US Federal Reserve might refrain from further US stimulus measures.

Currencies

At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5525, 0.1% higher against the EUR at €1.2537, and 0.1% higher against the JPY at ¥124.10.

The EUR is trading 0.1% lower against the USD at $1.2382, and marginally lower against the JPY at ¥98.98, ahead of a report due to be released today, that might show industrial production in Germany and Spain declined.

Yesterday, the EUR closed lower against the USD, after the ECB President, Mario Draghi, warned that a further interest rate cut has increased the downside risk of eurozone economy and following a rise in Italian and Spanish borrowing costs at debt auctions.

The EUR finished lower against the AUD and the NZD, after the European Central Bank lowered its benchmark interest rate to a record 0.75%.

The GBP closed lower against the GBP, after the Bank of England increased its asset purchases by £50.0 billion, bringing the total size of the program to £375.0 billion.

The NZD ended higher against the USD, after New Zealand’s government stated that the country’s budget deficit was narrower-than-forecast in the 11 months through May.

The USD closed lower against the USD, after the Institute for Supply Management (ISM) reported that US service sector index fell more-than-expected in June, and US MBA mortgage applications dropped in the week ended 29 June 2012.

July 05, 2012 Financial Market Summary

US markets were closed yesterday on account of the Independence Day holiday.

Nikkei 225 index is trading 0.1% lower at 9,096.6.

FTSE 100 edged down 0.1% to settle at 5,684.5.

FTSEurofirst 300 index eased 0.1% to 1,045.6.

In Asia, crude oil for August delivery is trading 0.7% or $0.64 lower at $87.02 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5591, 0.1% lower against the EUR at €1.2442, and marginally higher against the JPY at ¥124.6.

US Market Snapshot

US markets were closed yesterday on account of the Independence Day holiday.

Asian Market Snapshot

Asian markets are trading lower this morning, as service sector data in Germany and the UK came in below expectations and ahead of the European Central Bank and the Bank of England policy meetings. In Japan, GS Yuasa traded lower, after Goldman Sachs Group trimmed its price target on the stock. Tokyo Electron lost value, after a Nikkei news report stated that the company would take a tax charge for the April-June quarter. In Hong Kong, Evergrande Real Estate paced lower after it filed a police report related to a short-seller that accused the company of fraud, bribery and financial irregularity. In South Korea, Lotte Shopping lost value as both Fitch and Moody's placed the company on negative credit watch after the company acquired a majority stake in Hi-mart. However, Halla Climate Control surged after Visteon Corp offered to buy out Halla's remaining stake to take full ownership of the company.

Nikkei 225 index is trading 0.1% lower at 9,096.6. Hong Kong index is trading 0.4% lower, at 19,627.9, while the Kospi index is trading 0.1% lower, at 1,872.1.

UK Market Snapshot

UK markets edged lower yesterday, after domestic service sector growth fell to an eight month low and on some profit-booking by investors following the recent rally. Markets awaited the outcome of the European Central Bank and the Bank of England policy meetings, the next day. Barclays lost 0.6%, as its former Chief Executive testified before a UK parliamentary panel, while HSBC Holdings, Lloyds Banking Group and ICAP declined between 0.5% and 1.1%, as investors feared that the LIBOR-scandal might implicate more firms. Tullow Oil fell 1.9%, after the company suspended drilling at a well in Kenya. Supermarket operator, Tesco dropped 1.2%, as ING downgraded its rating on the stock from “Hold” to “Sell” and slashed its target price, while WM Morrison Supermarkets lost 0.8%, as the same broker reduced its stance on the stock to “Hold” from “Buy”.

FTSE 100 edged down 0.1% to settle at 5,684.5, while FTSE 250 fell 0.3% to close at 11,161.2.

European Market Snapshot

Other European markets closed in the negative territory yesterday, a day ahead of the European Central Bank meeting, as the purchasing managers’ index for services in the UK and Germany came in weaker than expected and as Italy’s budget deficit rose in the first-quarter on an annual basis. Financial sector stocks, Banco Populare, Commerzbank and Banco Santander, lost between 0.3% and 3.1%, on news that European aid of up to €100 billion to Spanish banks could be delayed until 20 July. Utility sector stock, EON declined 1.6%, after both JPMorgan and Citigroup cut their recommendations on the stock. Chemical sector stock, Linde fell 1.3%, after Credit Suisse downgraded the stock to “Neutral” from “Outperform”. However, Societe Television Francaise 1 climbed 3.5%, after UBS advised a “Buy” on the stock, citing current valuation parameters.

FTSEurofirst 300 index eased 0.1% to 1,045.6. German DAX Xetra 30 dropped 0.2% to 6,564.8. French CAC-40 closed 0.1% lower at 3,267.8.

Commodities

In Asia, crude oil for August delivery is trading 0.7% or $0.64 lower at $87.02 per barrel. Yesterday, crude oil for August delivery dropped 0.7% or 61 cents to $87.05 per barrel in electronic trading, as signs of a slowdown in private Chinese service-sector activity and a contraction in Germany's service sector PMI weighed on investor sentiment. However, an American Petroleum Institute report indicating a sharp weekly drop in US crude oil inventories by 3 million barrels and simmering concerns about Iran kept losses under check. Floor trading was closed for the US Independence Day holiday.

Gold for immediate delivery is trading 0.1% lower today, at $1,617.98 per ounce. Gold futures for August delivery retreated 0.4% to close at $1,616.20 per ounce yesterday in electronic trading, as the dollar rose against the major currencies, decreasing the demand for the precious metal as a hedge against inflation. Floor trading was closed for the US Independence Day holiday.

Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5591, 0.1% lower against the EUR at €1.2442, and marginally higher against the JPY at ¥124.62. The GBP is trading lower the EUR, amid growing speculation that the Bank of England would increase its target for bond purchases to £375 billion in today’s meeting.

The EUR is trading 0.1% higher against the USD at $1.2531. The EUR is trading 0.1% higher against the JPY at ¥100.16.

Earlier, the EUR was trading lower against most of its 16 major counterparts amid speculation a report would show German factory orders dropped in May. The European Central Bank is expected to cut interest rate at its policy meeting today to stimulate the euro-area’s economy. Spain is scheduled to auction 3-, 4- and 10-year bonds today, while France would auction 10-year bonds.

The JPY is trading lower against most of its major peers, amid speculation that additional monetary stimulus from central banks would boost global economic growth, decreasing the demand for safe-haven currencies.

The AUD is trading lower against the USD, after Australia’s trade deficit widened in May for a fifth month.

Yesterday, the GBP closed lower against the USD, after a report revealed that the purchasing managers' index for the service sector in the UK dropped to a reading of 51.3 in June, marking its lowest reading since October 2011.

The EUR ended lower against the USD, after a report showed that German services PMI declined in June.

July 04, 2012 Financial Market Summary

DJIA added 0.6% to end at 12,943.8. NASDAQ rose 0.8% to settle at 2,976.1. S&P 500 gained 0.6% to close at 1,374.0.

Nikkei 225 index is trading 0.4% higher at 9,102.7.

FTSE 100 gained 0.8% to settle at 5,687.7. FTSEurofirst 300 index rose 1.0% to 1,046.1.

In Asia, crude oil for August delivery is trading 0.4% or $0.31 lower at $87.35 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5674, marginally higher against the EUR at €1.2449, and 0.2% lower against the JPY at ¥125.03.

US Market Snapshot

US markets rallied in a shortened pre-holiday session yesterday, as better-than-expected factory orders for May coupled with robust auto-sales data for June lifted market sentiment. Hopes of positive developments from global central banks to spur economic growth also underpinned gains. Ford and General Motors gained 2.2% and 5.6%, respectively, following upbeat June auto-sales data.  Alcoa and Caterpillar rose 3.2% and 3.3%, respectively, following positive economic data. Energy related stocks, Concho Resources, Anadarko Petroleum, Whiting Petroleum, Helmerich & Payne and EOG Resources advanced between 4.8% and 6.7%, after crude oil prices rose. Consolidated Communications Holdings added 4.2%, after Wells Fargo resumed coverage on the stock with an “Outperform” rating.

DJIA added 0.6% to end at 12,943.8. NASDAQ rose 0.8% to settle at 2,976.1. S&P 500 gained 0.6% to close at 1,374.0.

Asian Market Snapshot

Asian markets are trading higher this morning, following upbeat economic data in the US and on expectations of fresh stimulus measures by global central banks. In Japan, Renesas Electronics gained value, after the company announced that it would cut more than 5,000 jobs to help trim losses. Energy stocks, JX Holdings and Inpex traded higher, tracking overnight gains in crude oil prices. In Hong Kong, ICBC and Bank of China traded higher, on news that Central Huijin Investment has increased its stake in these companies. In South Korea, Hi-mart paced higher, on news that Lotte Shopping had been selected as preferred bidder for a controlling stake in the company. LG Display gained value after analysts forecasted a turnaround to profit for the company in the third quarter.

Nikkei 225 index is trading 0.4% higher at 9,102.7. Hong Kong index is trading 0.1% higher, at 19,762.4, while the Kospi index is trading 0.4% higher, at 1,874.4.

UK Market Snapshot

UK markets closed higher yesterday, extending gains into a third session, amid speculation that China would cut banks’ reserve requirements to boost its economy. Positive US factory data also supported the momentum. Vedanta Resources, the top gainer on the FTSE 100 index, rallied 6.1%, as Morgan Stanley reiterated its “Overweight” rating on the stock. BHP Billiton and Rio Tinto gained 2.2% and 3.2%, respectively, following broker upgrades. Kazakhmys and Antofagasta added 3.7% and 3.8%, respectively, tracking higher base metal prices. Engineering group, Meggitt advanced 1.9%, after UBS upgraded its rating on the stock to “Buy” from “Neutral”, while oil-services provider, Petrofac rallied 1.5%, as a broker raised its recommendation on the stock to “Buy” from “Hold”. BP, Royal Dutch Shell and BG Group added between 1.0% and 1.8%, as crude oil prices rose on fresh concerns over Iran.

FTSE 100 gained 0.8% to settle at 5,687.7, while FTSE 250 rose 0.9% to close at 11,189.8.

European Market Snapshot

Other European markets closed higher yesterday, amid expectations for further stimulus measures from global central banks and following a rebound in US factory orders. Among carmakers, Peugeot climbed 3.7%, after the company announced that it would cut its workforce by about 10% to reduce operational costs, while Volkswagen and BMW each rose 3.0%, following reports that US auto sales surpassed market expectations in June. Beiersdorf rose 2.2%, amid positive comments from a broker. Chemical maker, BASF advanced 2.3%, after the company agreed to buy US based cast elastomers producer ITWC. Swiss Re added 1.7%, after BlackRock announced that it would acquire Private Equity Partners from the company.

FTSEurofirst 300 index rose 1.0% to 1,046.1. German DAX Xetra 30 added 1.3% to 6,578.2. French CAC-40 closed 1.0% higher at 3,271.2.

Commodities

In Asia, crude oil for August delivery is trading 0.4% or $0.31 lower at $87.35 per barrel. Yesterday, crude oil for August delivery gained 4.7% or $3.91 to $87.66 per barrel, on renewed concerns about Iran’s nuclear program as it made its missile-test announcement and on optimism that central banks across the globe would add more stimuli to boost the economy.

Gold for immediate delivery is trading 0.2% lower today, at $1,617.43 per ounce. Gold for August delivery settled up 1.5% or $24.10 at $1,621.80 per ounce yesterday, as the dollar dropped against most major currencies following upbeat US factory orders data and on expectations of a rate cut by the European Central Bank.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5674, marginally higher against the EUR at €1.2449, and 0.2% lower against the JPY at ¥125.03.

The EUR is trading 0.1% lower against the USD at $1.2590.

The EUR is trading 0.2% lower against the JPY at ¥100.44.

The EUR is trading lower against the USD and the JPY, ahead of Spanish bonds auctions tomorrow and on speculation policy makers would cut interest rates at a meeting of the European Central Bank. The currency also traded lower ahead of a report which is expected to show that the Euro-zone services and manufacturing industries shrank in June.

The AUD closed higher against the USD, following positive comments on the economy by Reserve Bank of Australia Governor, Glenn Stevens and after retail sales in the country rose 0.5% MoM in May.

Yesterday, the USD closed lower against the EUR, as a rise in the US factory orders data in June dampened demand for the safe haven assets.

The CAD rose along with other riskier currencies, amid hopes that global central banks would add more stimuli to spur economic growth, decreasing the demand for safe haven assets.

The AUD ended higher against most of its major peers, after report showed that the number of permits granted to build or renovate houses and apartments in Australia rose by 23.7% in May from April.

July 03, 2012 Financial Market Summary

DJIA edged down 0.1% to end at 12,871.4. NASDAQ rose 0.6% to settle at 2,951.2. S&P 500 ticked up 0.3% to close at 1,365.5.

Nikkei 225 index is trading 0.8% higher at 9,072.2.

FTSE 100 soared 1.2% to settle at 5,640.6.

FTSEurofirst 300 index gained 1.4% to 1,035.3.

In Asia, crude oil for August delivery is trading 0.7% or $0.57 higher at $84.32 per barrel.

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5699, 0.1% lower against the EUR at €1.2465, and 0.4% higher against the JPY at ¥125.18.

US Market Snapshot

US markets ended mostly higher yesterday, amid hopes of monetary stimulus from the Federal Reserve following dismal manufacturing data. Micron Technology advanced 3.8%, as it agreed to acquire troubled Japanese peer, Elpida Memory. Best Buy jumped 5.9%, on a weekend report that its former chairman and founder was expected to present a buyout offer for the electronics retailer to its board. EverBank rallied 4.4%, after it stated that it would acquire GE Capital's Business Property Lending Inc. division for $2.51 billion. Diabetes-drug maker, Amylin Pharmaceuticals soared 8.9%, as Bristol-Myers Squibbb agreed to acquire the firm for $5.3 billion and as several brokerages raised their price target on the stock. However, DuPont slipped 2.3%, after Jefferies lowered its rating on the company to “Hold” from “Buy”. Groupon tumbled 10.5%, after a broker cut its price target on the stock.

DJIA edged down 0.1% to end at 12,871.4. NASDAQ rose 0.6% to settle at 2,951.2. S&P 500 ticked up 0.3% to close at 1,365.5.

Asian Market Snapshot

Asian markets are trading higher this morning, amid hopes the US Fed would ease monetary measures to boost the US economy following downbeat domestic economic data and expectations of a rate cut from the European Central Bank. In Japan, Sumitomo Mitsui Financial Group gained value after Daiwa Securities Group upgraded the sector’s rating. In Hong Kong, Tencent Holdings traded higher after Micron Technology agreed to buy Elpida Memory. In South Korea, Hyundai Heavy Industries extended gains after it bagged a $1.2 billion contract to build 10 container vessels for a European client.

Nikkei 225 index is trading 0.8% higher at 9,072.2. Hang Seng index is trading 1.6% higher at 19,757.0, while the Kospi index is trading 0.9% higher, at 1,868.0.

UK Market Snapshot

UK markets closed higher yesterday, with the FTSE 100 hitting its highest level in two months, as manufacturing PMI for Britain came in higher-than-expected in June. Barclays rallied 3.4%, as its chairman stepped down following last week’s settlement of an investigation into manipulation of benchmark interest rates and as Investec reiterated its “Buy” rating on the stock. Aviva, the top gainer on the FTSE 100 index, rallied 3.7%, on news the insurer has considered selling or closing as many as 15 of its 58 divisions. AstraZeneca gained 1.0%, after it partnered with US group Bristol-Squibb Myers to pay around $7 billion for acquisition of diabetes specialist Amylin. Oilfield services group, Petrofac rose 3.5%, after Goldman Sachs raised its target price, retaining its “Buy” rating on the stock. Serco added 1.5%, as it signed an agreement to dispose of most of its operations in Germany in a transaction with the local management team.

FTSE 100 soared 1.2% to settle at 5,640.6, while FTSE 250 surged 1.5% to close at 11,093.5.

European Market Snapshot

Other European markets closed higher yesterday, amid optimism of a rate cut by the European Central Bank (ECB) this week after EU leaders announced a range of positive measures to recapitalize banking system in last week’s summit meeting. Banking sector stocks, Credit Agricole, Commerzbank and Deutsche Bank gained between 1.8% and 6.9%, as risk appetite improved amongst investors, while BNP Paribas climbed 4.3%, after CA Cheuvreux added the stock to its select list and upgraded its rating. Automakers, Daimler, Bayerische Motoren Werke and Renault added between 0.8% and 2.5%, amid optimism over global demand outlook. However, Linde dropped 1.7%, after the company agreed to acquire Lincare Holdings Inc. for about $3.8 billion.

FTSEurofirst 300 index gained 1.4% to 1,035.3. German DAX Xetra 30 rose 1.2% to 6,496.1. French CAC-40 closed 1.4% higher at 3,240.2.

Commodities

In Asia, crude oil for August delivery is trading 0.7% or $0.57 higher at $84.32 per barrel. Yesterday, crude oil for August delivery declined 1.4% or $1.21 to end at $83.75 per barrel, as downbeat manufacturing data from Europe, the US and China fuelled concerns about crude oil demand. However, declines were capped to some extent as Iran threatened to block tankers via the Strait of Hormuz in response to European Union's sanctions against purchase of Iranian crude oil.

Gold for immediate delivery is trading 0.3% higher today, at $1,600.22 per ounce. Gold for August delivery eased 0.4% or $6.50 to settle at $1,597.70 per ounce yesterday, as investors reassessed the economic situation in Europe and cut their exposure to the precious metal amid speculation whether EU’s plan to shore up its banking sector would have an immediate effect on Europe's banking crisis.

Currencies

At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5699, 0.1% lower against the EUR at €1.2465, and 0.4% higher against the JPY at ¥125.18.

The EUR is trading 0.1% higher against the USD at $1.2594.

The EUR is trading 0.5% higher against the JPY at ¥100.43, as the demand for the high yielding currencies increased, after most of the Asian stocks traded higher.

The USD is trading lower against its major counterparts, amid speculation that the US Federal Reserve might introduce another round of quantitative easing to stimulate economic growth. The USD fell, ahead of a report which is expected to show that factory orders in the US stagnated in May.

Yesterday, the USD ended higher against the EUR, as weaker-than-expected US manufacturing data boosted the demand for safe-haven currency.

The EUR fell against the USD and GBP, after a report indicated that the unemployment rate in the Eurozone rose 11.1% in May, marking its highest level since January 1995. The EUR also fell, after Finland reportedly signalled that it would block efforts to use the Eurozone’s permanent rescue fund to buy distressed government debt.

The GBP ended lower against the USD, after reports showed that UK manufacturing output contracted and house prices stagnated in June, boosting speculation that the Bank of England would add stimulus measures this week.

July 02, 2012 Financial Market Summary

DJIA gained 2.2% to end at 12,880.1. NASDAQ climbed 3.0% to settle at 2,935.1. S&P 500 rose 2.5% to close at 1,362.2.

Nikkei 225 index is trading 0.2% higher at 9,020.9.

FTSE 100 rose 1.4% to settle at 5,571.2.

FTSEurofirst 300 index rose 2.6% to 1,021.4.

In Asia, crude oil for August delivery is trading 1.1% or $0.97 lower at $83.99 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5659, 0.2% higher against the EUR at €1.2406, and 0.3% lower against the JPY at ¥124.89.

US Market Snapshot

US markets rallied on Friday, as an agreement by the eurozone leaders on measures to contain the region’s debt crisis and shore up struggling banks boosted market sentiment. Constellation Brands jumped 24.4%, after the company bought the remaining 50.0% of Crown Imports. KB Home climbed 12.6%, as the company sold more houses at higher prices during its fiscal second quarter. Bank of America Corp, Citigroup and American Express rose between 2.7% and 5.7%, amid improved risk appetite among investors. Apple advanced 2.6%, after Pacific Crest raised its price target on the stock. Exxon Mobil Corp and Chevron Corp added 3.0% and 2.0%, respectively, following a rise in crude oil prices. However, Research In Motion plunged 19.9%, after posting a first quarter loss and delaying the next BlackBerry operating system.

DJIA gained 2.2% to end at 12,880.1. NASDAQ climbed 3.0% to settle at 2,935.1. S&P 500 rose 2.5% to close at 1,362.2.

Asian Market Snapshot

Asian markets are trading higher this morning, as investors welcomed a European plan to address the region’s debt crisis and after Japan’s quarterly Tankan business-sentiment survey came in well above expectations. In Japan, Sony traded higher, after a Nikkei news report stated that the firm's Japanese music unit would open its library to domestic owners of Apple devices. In South Korea, LG International surged after a regulatory filing showed that the company had acquired a $212 million stake in an Indonesian coal mine. SK Hynix traded higher, after it completed a new semiconductor line to keep up with rising demand for data-storage chips used in Apple's smartphones and tablets.

Nikkei 225 index is trading 0.2% higher at 9,020.9, while the Kospi index is trading 0.2% higher, at 1,858.2. Markets in Hong Kong are closed on account of a public holiday.

UK Market Snapshot

UK markets closed higher on Friday, as European leaders agreed to shore up the region’s banking system to reduce borrowing costs for Italy and Spain and contain the region’s debt crisis. Banking sector stocks, Lloyds Banking Group, HSBC Holdings and Royal Bank of Scotland Group gained between 0.5% and 4.3%, as investors remained optimistic on an agreement by eurozone leaders for banks in the region. However, Barclays dropped 1.7%, amid continued worries about the extent of the problems it faces, despite having settled allegations of manipulating interbank lending rates. BP, Royal Dutch Shell and BG Group gained between 1.0% and 3.1%, tracking a rise in crude oil prices. Berkeley Group Holdings climbed 3.2%, after it reported a sharp surge in full-year profits. Cairn Energy added 3.5%, after it raised $365 million selling a stake in Cairn India Limited. Miners, Vedanta Resources, Rio Tinto Group and Antofagasta rose between 3.6% and 4.7%, as base metal prices traded higher.

FTSE 100 rose 1.4% to settle at 5,571.2, while FTSE 250 gained 2.3% to close at 10,932.1.

European Market Snapshot

Other European markets rallied on Friday, after EU leaders announced a range of positive measures to recapitalize banks using the region's permanent bailout fund, without adding to government debt, easing concerns about Italy and Spain. Deutsche Boerse climbed 4.8%, after JPMorgan upgraded the stock to “Overweight” from “Neutral”, while BNP Paribas, National Bank of Greece and Banco Santander, rallied between 6.9% and 12.9%, as investors cheered the eurozone emergency action. BMW surged 5.1%, after UBS upgraded the stock to “Buy” from “Neutral”, while Daimler soared 4.5%, after the company reached a MoU with Tokyo-based Nissan on the mutual supply of light-duty trucks in Japan.

FTSEurofirst 300 index rose 2.6% to 1,021.4. German DAX Xetra 30 soared 4.3% to 6,416.3. French CAC-40 closed 4.8% higher at 3,196.7.

Commodities

In Asia, crude oil for August delivery is trading 1.1% or $0.97 lower at $83.99 per barrel. On Friday, crude oil for August delivery soared 9.4% or $7.27 to end at $84.96 per barrel, on improved prospects for energy-demand growth after EU leaders, at a summit, announced plans to use bailout funds to reduce the debt burden on Italy and Spain, easing concern the eurozone crisis would worsen. Crude oil also gained value, after business activity in the US unexpectedly expanded in June and ahead of the start of a European Union oil embargo on imports from Iran due to begin July 1.

Gold for immediate delivery is trading 0.3% lower today, at $1,592.05 per ounce. Gold for August delivery rallied 3.5% or $53.80 to settle at $1,604.20 per ounce on Friday, as the dollar weakened against the euro, after EU policymakers agreed on measures to help resolve the ongoing debt crisis in the euro region.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5659, 0.2% higher against the EUR at €1.2406, and 0.3% lower against the JPY at ¥124.89.

The EUR is trading 0.3% lower against the USD at $1.2622.

The EUR is trading 0.4% lower against the JPY at ¥100.67.

The EUR is trading lower against most of its major peers, amid mounting speculation that the European Central Bank would lower the interest rates, ahead of reports that might show jobless rate climbed to a record and manufacturing activity contracted in the region.

The USD fell against the JPY following a stronger-than-expected Tankan survey data in Japan. Investors speculate Institute for Supply Management report would show US manufacturing activity slowed down in June.

On Friday, the EUR closed higher against the USD, as post EU summit announcements eased investors’ concerns about the European banking sector and spurred optimism that EU lawmakers would resolve the region’s sovereign-debt crisis.

The JPY closed lower against the USD, after the industrial output in Japan fell 3.1% in May and domestic Purchasing Managers' Index (PMI) for the manufacturing sector in Japan contracted in June.

The CAD finished higher against the USD, as demand for high-yielding assets increased, amid optimism that Europe would be able to resolve its debt crisis.