August 08, 2012 Financial Market Summary

At 0500 BST today, DJIA futures are trading 15.0 points lower.

Nikkei 225 index is trading 1.6% higher at 8,946.7.

At 0500 BST today, FTSE 100 futures are trading 6.5 points lower.

At 0500 BST today, German DAX Xetra 30 futures are trading 2.0 points higher, while French CAC-40 futures are trading 6.6 points lower.

In Asia, crude oil for September delivery is trading 0.4% or $0.36 lower at $93.31 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5615, 0.1% lower against the EUR at €1.2596, and 0.1% lower against the JPY at ¥ 122.63.

US Market Snapshot

At 0500 BST today, DJIA futures are trading 15.0 points lower.

Yesterday, DJIA advanced 0.4% to settle at 13,168.6. NASDAQ added 0.9% to close at 3,015.9. S&P 500 climbed 0.5% to settle at 1,401.4. Solid corporate earnings reports and hopes of stimulus from global central banks helped the US markets to close higher for the third-consecutive session yesterday. Fossil surged 31.5%, leading the gains in S&P 500 index, as the firm forecasted growth in Asia and Europe, amid higher-than-expected second quarter results. Boeing rose 2.2%, after it increased prices of commercial airplanes, while Cisco gained 2.7%, helped by positive comments from Deutsche Bank. Chesapeake Energy gained 9.4%, after the company raised its production forecast. In after-hour’s session, online-travel company, Priceline.com plunged 15.4%, as its quarterly forecast missed market expectations; while Walt Disney lost 1.4% after its quarterly revenue fell short of market expectations.

Asian Market Snapshot

Asian markets are trading sharply higher this morning, taking cues from overnight gains on Wall Street, as job openings in the US increased in June, marking its largest increase in four years. In Japan, Nikon traded higher, after media reports revealed that the firm would partner with Intel to develop a next-generation semiconductor product. Sharp paced values, as Taiwan's Hon Hai Precision Industry appeared committed in investing in the Japanese firm. In Hong Kong, Melco Crown Entertainment is trading higher, as it posted a rise in its second-quarter profit. In South Korea, E-Mart surged, as guidelines requiring mandatory Sunday closures of large retail stores had been suspended by court orders. Halla Climate Control rebounded following bargain-hunting by investors.

Nikkei 225 index is trading 1.6% higher at 8,946.7. Hang Seng index is trading 0.2% higher at 20,114.4. Kospi index is trading 1.4% higher at 1,913.9.

UK Market Snapshot

At 0500 BST today, FTSE 100 futures are trading 6.5 points lower.

Brazil's Itaú Unibanco Holding has denied being in discussions with Royal Bank of Scotland to acquire its unit, Citizens Financial and further added that there is no proposal or binding agreement for Citizens.

RusPetro has announced that Nervent Limited, a company 91.4% owned by Executive Director, Alexander Chistyakov and 8.6% owned by Chief Financial Officer, Thomas Reed, has raised its stake to 13.94% after acquiring 8,439,833 shares from Makayla Investments Limited.

European Market Snapshot

At 0500 BST today, German DAX Xetra 30 futures are trading 2.0 points higher, while French CAC-40 futures are trading 6.6 points lower.

Freenet has reported that revenues for the first-half of 2012 stood at €1.49 billion compared to €1.55 billion in the same period last year, while EBITDA stood at €170.7 million against €162.3 million last year.

Maurel & Prom reported that consolidated sales for the half year stood at €225.9 million, up 24% compared to 2011. The company affirmed its objective to achieve output of about 24,500 bopd by the end of 2012.

Commodities

In Asia, crude oil for September delivery is trading 0.4% or $0.36 lower at $93.31 per barrel.

Yesterday, crude oil for September delivery gained 1.6% or $1.47 to $93.67 per barrel, tracking gains in equity markets and as the dollar weakened amid renewed hopes of additional stimulus by US Federal Reserve.

Oil prices also rose, as concerns over possible supply disruptions in the Middle East escalated and after the US Energy Department raised its crude-oil projection for 2012 to $93.90 per barrel from $92.83 last month.  Later in the day, the American Petroleum Institute reported that oil inventories dropped 5.35 million barrels to 364.3 million last week.

Gold for immediate delivery is trading marginally higher today, at $1,610.90 per ounce.

Gold for December delivery settled down 0.2% or $3.40 at $1,612.80 per ounce yesterday, as investors decided to book profit following two days of solid gains.

Yesterday, copper 3-month futures rose 2.0% or $150.0, to close at $7,561.00 /MT. Aluminium 3-month futures rose 2.0% or $35.0, to close at $1,780.00 /MT.

Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5615, 0.1% lower against the EUR at €1.2596, and 0.1% lower against the JPY at ¥ 122.63.

The EUR is trading 0.1% higher against the USD at $1.2396. The EUR is trading slightly higher against the JPY at ¥ 97.38. However, demand for the euro was capped, ahead of a report which is expected to show that industrial production in Germany dropped in June.

Earlier in the trading session, the JPY traded lower against the USD, as the extra yield on two-year US treasuries over Japan’s government bonds widened to the most in one month.

The AUD is trading higher against the USD, after data indicated that Australian home-loan approvals rose in June by the most this year.

Yesterday, the EUR ended higher against the JPY and flat against USD, amid rising speculation that the ECB would take appropriate measures to stem the region’s debt crisis.

The GBP closed higher against the USD, after reports revealed that UK manufacturing output and industrial production fell less-than-expected in June.

The AUD ended lower against the USD, after the Reserve Bank of Australia left its key lending rate unchanged at 3.5%.

The NZD closed lower against the USD, after Prime Minister John Key stated that there might be scope for the central bank to lower borrowing costs.

Macroeconomic Snapshot

The consumer credit in the US rose by $6.5 billion in June, its weakest growth in eight months, after a downwardly revised increase of $16.7 billion reported in May.

The job openings in the US, increased by 105,000 to 3.76 million in June, marking its largest increase in four years and compared to 3.66 million recorded in May.

Standard & Poor's Rating Services revised its outlook on the long-term ratings on Greece to “Negative”, reflecting the possibility of a downgrade if Greece fails to secure the next disbursement of the EU/IMF Program.

Overall bank lending in Japan rose 1.0% to ¥396.424 trillion in July, compared to a 0.8% expansion recorded in June.

Japan’s current account surplus rose to ¥433.3 billion in June, compared to a surplus of ¥215.1 billion recorded in May.

August 07, 2012 Financial Market Summary

DJIA edged up 0.2% to close at 13,117.5. NASDAQ added 0.7% to settle at 2,989.9. S&P 500 ticked up 0.2% to end at 1,394.2.

Nikkei 225 index is trading 0.6% higher at 8,778.7.

FTSE 100 rose 0.4%, to settle at 5,808.8.

FTSEurofirst 300 index added 0.4% to 1,085.8.

In Asia, crude oil for September delivery is trading 0.2% or $0.21 lower at $91.99 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5592, 0.1% lower against the EUR at €1.2572, and 0.1% higher against the JPY at ¥ 122.08.

US Market Snapshot

US markets closed higher yesterday, hitting fresh three-month highs, as better-than-expected earnings reports lifted market sentiment and after worries over the European debt crisis eased on reports that Germany had backed the European Central Bank's bond-purchasing programme. Best Buy rallied13.3%, after the company’s founder offered a 36% to 47% premium per share in a move to take the electronics retailer private, while Kraft Foods edged up 0.2%, after a broker raised its rating on the stock to “Buy” from “Hold”. DuPont, Alcoa and Caterpillar gained between 1.4% and 1.6%, amid easing worries over sluggish economy. Cognizant Technology jumped 11.0%, as it raised its full-year earnings guidance, amid double-digit growth in second-quarter revenue. Pluristem Therapeutics surged 14.8%, after a patient, for the second time in three months, was saved using its placenta-based stem cell treatment.

DJIA rose 0.2% to close at 13,117.5. NASDAQ added 0.7% to settle at 2,989.9. S&P 500 ticked up 0.2% to end at 1,394.2.

Asian Market Snapshot

Asian markets are trading higher this morning, ahead of Chinese economic data later in the week, amid intensified speculation that the European policymakers would act to reign in higher borrowing costs in struggling countries like Spain and Italy. In Japan, steelmakers, JFE Holdings, Nippon Steel and Sumitomo Metal Industries paced gains, as their US-peer, AK Steel announced price hikes pointing to improving business conditions. In Hong-Kong, Cnooc rallied as Nymex crude-oil futures climbed overnight, while Europe-focused firm, Esprit Holdings is trading higher, amid improvement in exports outlook. In South-Korea, Korea Aerospace Industries climbed, as it posted a sharp gain in its second-quarter profit on a YoY basis.

Nikkei 225 index is trading 0.6% higher at 8,778.7. Kospi index is trading 0.2% higher at 1,890.5. Hang Seng index is trading 0.4% higher at 20,085.1.

UK Market Snapshot

UK markets ended higher yesterday, after Greece and the Troika agreed on the need to support policy efforts and comply with its bailout terms. Royal Bank of Scotland surged 5.9%, amid reports that its US subsidiary, Citizens Financial, could receive a £10 billion takeover approach from Brazil's Banco Itau. Amongst other banks, Barclays and Lloyds Banking Group rose 3.4% and 2.5%, respectively as risk appetite increased amongst investors. Miners, ENRC, Vedanta Resources, Randgold Resources and Rio Tinto climbed between 2.6% and 3.8%, tracking a rise in metal prices. Marks and Spencer advanced 1.9%, amid speculative reports that it could be a takeover target. Evraz climbed 4.8%, after a broker removed the stock from its “Least Preferred” list. Burberry Group rose 1.9%, after Prada reported a sharp rise in its first-half sales, surpassing analyst estimates. Catlin Group gained 2.6%, after the company swung to a first-half profit.

FTSE 100 rose 0.4%, to settle at 5,808.8. FTSE 250 climbed 1.1%, to close at 11,426.4.

European Market Snapshot

Other European markets closed higher yesterday, after Greece and its creditors agreed on the requirement to strengthen policy efforts and German Chancellor Angela Merkel’s government backed ECB’s bond buying program. Peugeot, Renault, BMW and Volkswagen soared between 1.7% and 7.8%, after their Japanese peer, Toyota reported better-than-expected sales figures. Credit Agricole, BNP Paribas, Societe Generale and Deutsche Bank climbed between 0.8% and 5.2%, amid optimism European policy makers would take action to contain the region’s debt crisis. Richemont gained 5.2%, after the company forecasted a rise in first-half profit. Allianz advanced 2.0%, after a broker upgraded the stock to “Overweight” from “Neutral”.

FTSEurofirst 300 index added 0.4% to 1,085.8. German DAX Xetra 30 rose 0.8% to 6,918.7. French CAC-40 closed 0.8% higher at 3,401.6.

Commodities

In Asia, crude oil for September delivery is trading 0.2% or $0.21 lower at $91.99 per barrel. Yesterday, crude oil for September delivery advanced 0.9% or $0.80 to $92.20 per barrel, extending Friday’s gains, as investors eyed ongoing turmoil in the Middle East and as a rise in global equity markets and a weaker dollar increased the appeal for crude oil as an alternative investment. Crude oil futures had jumped in the morning session, amid false rumours about Syrian President Bashar al-Assad’s death.

Gold for immediate delivery is trading marginally higher today, at $1,612.05 per ounce. Gold for December delivery settled up 0.4% or $6.90 at $1,616.20 per ounce yesterday, as the dollar weakened against the major currencies and after Friday’s US unemployment data increased hopes for more aggressive stimulus by the US Federal Reserve.

Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5592, 0.1% lower against the EUR at €1.2572, and 0.1% higher against the JPY at ¥ 122.08.

The EUR is trading 0.1% higher against the USD at $1.2402. The EUR is trading 0.2% higher against the JPY at ¥97.10. The EUR is trading higher after the German Chancellor Angela Merkel’s government backed the European Central Bank’s bond-buying plan in efforts to lower borrowing costs in Italy and Spain.

Earlier, the EUR was trading lower against the JPY and the USD, after Italy’s Prime Minister Mario Monti stated that divisions within the euro-bloc threatened the European Union’s future.

The JPY is trading higher against most of its major peers as global equity markets traded higher and amid speculation the Bank of Japan would refrain from additional monetary easing at a policy meeting that starts tomorrow.

The AUD traded higher against the USD, amid speculation Australia’s Reserve Bank would keep borrowing costs unchanged at 3.5% at a meeting today.

Yesterday, the EUR ended higher again the USD and the GBP amid optimism that the European policymakers would contain the region’s debt crisis by supporting struggling nations.

The GBP ended lower against the EUR and USD, after Halifax reported that the house price index in the UK dropped 0.6% in July, underlining the fragility of Britain’s economy.

August 06, 2012 Financial Market Summary

DJIA soared 1.7% to close at 13,096.2. NASDAQ surged 2.0% to settle at 2,967.9. S&P 500 surged 1.9% to end at 1,391.0.

Nikkei 225 index is trading 1.7% higher at 8,702.3.

FTSE 100 surged 2.2% to settle at 5,787.3.

FTSEurofirst 300 index advanced 2.5% to 1,081.4.

In Asia, crude oil for September delivery is trading 0.3% or $0.25 lower at $91.15 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5619, 0.3% lower against the EUR at €1.2600, and 0.4% lower against the JPY at ¥122.48.

US Market Snapshot

US markets closed higher on Friday, snapping a four-day losing streak, after US nonfarm payrolls rose more-than-expected in July, at the fastest pace in five months. Renewed hopes of actions from the European authorities to contain the eurozone debt crisis and upbeat July service sector data also underpinned market sentiments. Kraft Foods gained 4.0%,  as it left its full-year forecasts unchanged, after reporting forecast-beating second-quarter results, while Procter & Gamble rose 3.1%, as it unveiled a $4 billion worth of share re-purchase plan. LinkedIn jumped 16.0%, as it raised its revenue forecast for this year. Boeing added 1.1%, as NASA picked Boeing along with two other aerospace companies to develop spacecraft capable of carrying astronauts.

DJIA soared 1.7% to close at 13,096.2. NASDAQ surged 2.0% to settle at 2,967.9. S&P 500 surged 1.9% to end at 1,391.0.

Asian Market Snapshot

Asian markets are trading higher this morning, following positive US labour market and services industry data, alleviating fears of a slowdown in the world’s largest economy. A weekend statement by the People's Bank of China indicating a step-up in monetary policy fine-tuning also helped investment sentiment, raising hopes for more monetary easing. In Japan, Toyota Motor paced gains after it hiked its sales target on strong US and domestic demand. In Hong-Kong, Cnooc and China Petroleum & Chemical added values, as crude-oil futures rallied nearly 5% on Friday. In South Korea, STX Corp and STX Offshore & Shipbuilding, both surged, after media reports revealed that a local private equity fund was in talks to acquire a 49% stake in unlisted affiliate STX Energy.

Nikkei 225 index is trading 1.7% higher at 8,702.3. Kospi index is trading 2.1% higher at 1,887.6. Hang Seng index is trading 2.0% higher at 20,062.8.

UK Market Snapshot

UK markets rallied sharply on Friday, with the FTSE 100 index hitting a three-month high, following solid corporate earnings across Europe and after US non-farm payrolls data for July surpassed market expectations. Among insurance sector stocks, Aviva , the top gainer on the FTSE 100 index, jumped 7.4%, while Legal & General and Prudential climbed 2.7% and 6.1%, respectively, as their French-peer, Axa  reported first-half profits that surpassed market expectations. BHP Billiton rose 3.3%, after the company stated that its CEO would give up his 2012 bonus following a write-down worth $2.84 billion on US shale gas assets. Royal Bank of Scotland jumped 5.6%, despite reporting a £1.5 billion loss in the first half. Inmarsat rallied 10.9%, after it was encouraged by revenue growth in its core Global MSS business, despite a drop in second-quarter results.

FTSE 100 surged 2.2% to settle at 5,787.3, while FTSE 250 soared 2.0% to close at 11,301.1..

European Market Snapshot

Other European markets ended higher on Friday, as risk appetite returned among investors, following robust nonfarm payrolls data released from the US and after yields on Spanish and Italian bonds eased. Banks, Societe Generale, BNP Paribas, Deutsche Bank and Commerzbank rallied between 6.4% and 10.3%, on higher risk appetite. Siemens surged 6.2%, after the company stated that it would buy back as much as €3 billion of stock by late December. Continental gained 6.1%, after its second-quarter‎ profit surpassed market expectations and as it raised its 2012 target. Allianz soared 5.7%, on stronger-than-anticipated second-quarter results. Nokia rose 3.3%, on the back of increased sales of its Lumia smartphone series and amid speculation of a bid interest from Lenovo Group. 

FTSEurofirst 300 index advanced 2.5% to 1,081.4. German DAX Xetra 30 gained 3.9% to 6,865.7. French CAC-40 closed 4.4% higher at 3,374.2.

Commodities

In Asia, crude oil for September delivery is trading 0.3% or $0.25 lower at $91.15 per barrel. On Friday, crude oil for September delivery advanced 4.9% or $4.27 to $91.40 per barrel, amid optimism over demand outlook, after reports revealed that US non-farm payrolls climbed more-than-expected in July and US service industries increased unexpectedly in July. Oil prices also rose, tracking a rise in global equity markets and as a weak dollar increased the appeal of crude oil as an alternative investment.

Gold for immediate delivery is trading 0.1% higher today, at $1,604.60 per ounce. Gold for December delivery settled up 1.2% or $18.60 at $1,609.30 per ounce on Friday, as the dollar weakened against the major currencies, increasing the demand for the precious metal as a hedge against inflation.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5619, 0.3% lower against the EUR at €1.2600, and 0.4% lower against the JPY at ¥122.48.

The EUR is trading 0.2% higher against the USD at $1.2396, after Greece and its international creditors agreed on the need to strengthen policy efforts to boost the economy and comply with its bailout terms after more than a week of meetings in Athens. The EUR is trading 0.1% lower against the JPY at ¥97.21.

The JPY is trading lower against most of its major peers, amid speculations that Japan’s officials, at the  Bank of Japan’s a two-day policy meeting starting 8 August, would favour intervention in the currency markets to weaken the local currency.

On Friday, the USD ended lower against most of its major counterparts, as better-than-expected US employment and services sector data improved risk appetite among investors and dampened the demand for the currency as safe-haven asset. Continued speculation of further quantitative easing by US Federal Reserve also weighed on the dollar.

The EUR closed higher against the USD, after data indicated an unexpected rise in eurozone retail sales for June and upbeat German services sector data for July. The EUR also rose, after members of German Chancellor Angela Merkel’s coalition parties indicated that they would not stand in the way of ECB Chief Mario Draghi’s plan to buy government bonds. 

The NZD ended higher against most of its major peers, after Standard & Poor’s affirmed the New Zealand’s credit rating at ‘AA+/A-1+’, with a stable outlook.

August 03, 2012 Financial Market Summary

DJIA fell 0.7% to settle at 12,878.9. NASDAQ shed 0.4% to close at 2,909.8. S&P 500 shed 0.7% to end at 1,365.0.

Nikkei 225 index is trading 1.6% lower at 8,513.2.

FTSE 100 eased 0.9%, to settle at 5,662.3.

FTSEurofirst 300 index eased 1.2 % to 1,055.3.

In Asia, crude oil for September delivery is trading 0.4% or $0.36 higher at $87.49 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5518, 0.1% higher against the EUR at €1.2746, and slightly lower against the JPY at ¥121.33.

US Market Snapshot

US markets slid for the fourth day in a row, closing lower yesterday, after the ECB president, Mario Draghi dampened hopes of immediate solid actions to contain the European debt crisis, jittering market sentiment. Abercrombie & Fitch plunged to a three-year low, dropping 14.6%, as it slashed its annual forecast, citing  an anticipated double-digit drop in same-store sales in the second half of 2012. Knight Capital Group plummeted 62.8%, after a $440 million trading loss caused by a technical glitch wiped out much of its capital. Packaging firm, Sealed Air, the top laggard on the S&P 500, slumped 16.8%, as it swung to a second-quarter loss and after it lowered its full-year earnings outlook. General Motors dropped 2.6%, as its second-quarter revenue came in below market expectations.

DJIA fell 0.7% to settle at 12,878.9. NASDAQ shed 0.4% to close at 2,909.8. S&P 500 shed 0.7% to end at 1,365.0.

Asian Market Snapshot

Asian markets are trading lower this morning, tracking negative cues from Wall Street overnight and amid speculation that China would not ease its monetary policies in near term, increasing concern about the global economic recovery. Markets were also weighed down on disappointing corporate earnings. In Japan, Sharp plunged, after widening its full-year loss forecast, while Sony tumbled, as it reported a larger-than-expected quarterly loss and trimmed its profit forecast for the full year. In Hong Kong, Hutchison Whampoa paced decline, as it reported a sharp fall in its first-half net profit. In South Korea, Woori Finance Holdings traded lower after South Korea decided to suspend the sale of its 6 trillion won controlling stake in Woori Finance Holdings after the government received no initial bids.

Nikkei 225 index is trading 1.6% lower at 8,513.2. Kospi index is trading 0.7% lower at 1,857.2. Hang Seng index is trading 0.9% lower at 19,520.5.

UK Market Snapshot

UK markets closed lower yesterday, dragged by losses in financial and mining sector stocks, after the ECB President Mario Draghi failed to outline new measures to curb the region’s debt crisis. Royal Bank of Scotland plunged 5.1%, following media reports that the British government was considering nationalizing the bank. Amongst other banks, Lloyds Banking, Barclays, Standard Chartered and HSBC Holdings declined between 0.4% and 4.3%, as risk appetite decreased among investors. BAE Systems dropped 1.1%, after it reported a drop in its first-half sales. Miners, Vedanta Resources, Antofagasta, Kazakhmys and ENRC dropped between 4.0% and 7.1%, tracking a drop in base metal prices. Ophir Energy slumped 10.4%, after it announced gas discovery in Tanzania, much smaller than its previous expectations. However, Segro rallied 4.9%, after it posted stronger-than-expected quarterly results.

FTSE 100 eased 0.9%, to settle at 5,662.3. FTSE 250 shed 1.0%, to close at 11,076.6.

European Market Snapshot

Other European markets closed lower yesterday, as negative sentiment prevailed among investors after ECB President Mario Draghi failed to announce immediate actions to stimulate the region’s economy. Banks, Credit Agricole, Societe Generale, Commerzbank and Deutsche Bank plunged between 5.3% and 8.0%, as risk appetite decreased among investors. BNP Paribas fell 4.1%, after it reported a sharp drop in its second quarter profit. Veolia Environnement tumbled 11.7%, after it reported first-half results that fell short of market expectations. D.E Master Blenders 1753, the beverage business spun off from the former Sara Lee, slipped 5.6%, after the company stated that it would restate earnings following irregularities in accounting and tax provisions at its Brazilian operations.

FTSEurofirst 300 index eased 1.2 % to 1,055.3. German DAX Xetra 30 dropped 2.2% to 6,606.1. French CAC-40 closed 2.7% lower at 3,232.5.

Commodities

In Asia, crude oil for September delivery is trading 0.4% or $0.36 higher at $87.49 per barrel. Yesterday, crude oil for September delivery dropped 2.0% or $1.78 to $87.13 per barrel, tracking a decline in equity markets and as ECB President Mario Draghi failed to offer immediate stimulus measures to protect the euro and stem the eurozone debt crisis.

Gold for immediate delivery is trading 0.1% higher today, at $1,590.55 per ounce. Gold for December delivery settled down 0.9% or $14.30 at $1,592.80 per ounce yesterday, as the dollar strengthened against the euro, as investors were disappointed at the outcome of the ECB meeting which lacked aggressive monetary policy actions to contain the region’s debt crisis.

Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5518, 0.1% higher against the EUR at €1.2746, and slightly lower against the JPY at ¥121.33.

The EUR is trading marginally lower against the USD at $1.2174. The EUR is trading 0.1% lower against the JPY at ¥95.18.

The JPY is trading higher against its major peers, as escalating worries over the health of global economy and intensifying Europe’s debt crisis boosted demand for the safe haven currency.

Yesterday, the EUR ended lower against its major counterparts, after ECB President Mario Draghi failed to implement fresh monetary steps to back up last week’s pledge to do whatever it takes to protect the European common currency, the euro. Earlier in the session, the EUR was trading higher, as the ECB kept its benchmark interest rate unchanged at 0.75%, in line with market expectations.

The GBP ended higher against the EUR, after the Bank of England left its interest rate unchanged and retained the size of its quantitative easing programme.

The AUD closed higher against most of its major peers, after a report showed an improvement in retail sales and trade data for June, boosting expectations that the Reserve Bank of Australia would keep interest rates unchanged next week.

The NZD ended higher against most of its major peers, after data indicated that whole-milk powder prices in New Zealand climbed for the first time in six weeks.

August 02, 2012 Financial Market Summary

DJIA edged down 0.3% to settle at 12,971.1. NASDAQ shed 0.7% to close at 2,920.2. S&P 500 inched 0.3% lower to end at 1,375.1.

Nikkei 225 index is trading 0.3% higher at 8,669.5.

FTSE 100 added 1.4%, to settle at 5,712.8.

FTSEurofirst 300 index rose 0.5% to 1,068.2.

In Asia, crude oil for September delivery is trading 0.1% or $0.08 lower at $88.83 per barrel.

At 0400 BST today, the GBP is trading slightly lower against the USD at $1.5541, 0.1% lower against the EUR at €1.2692, and 0.1% higher against the JPY at ¥121.97.

US Market Snapshot

US markets closed lower yesterday, as investors' hopes for fresh monetary stimulus was dashed after the Federal Reserve maintained its status-quo on monetary policies but noted that economic activity had decelerated somewhat over the first half of the year. Avon Products and Harley-Davidson dropped 1.2% and 3.6%, respectively, as their second-quarter earnings trailed market expectations. Genworth Financial declined 11.1%, leading the laggards on the S&P 500, as its Chief Executive cited on potential difficulties to separating its US mortgage insurance unit from the company. MasterCard declined 2.2%, as it reported lower-than-expected second-quarter revenue and warned of a worldwide slowdown in consumption. General Motors and Ford dipped 0.3% and 0.5%, respectively, on account of lower fleet sales in July.

DJIA edged down 0.3% to settle at 12,971.1. NASDAQ shed 0.7% to close at 2,920.2. S&P 500 inched 0.3% lower to end at 1,375.1.

Asian Market Snapshot

Asian markets are trading mostly higher this morning, amid hopes of positive actions from the ECB later on in the day and boosted by upbeat corporate earnings results. However, gains were limited as the US Federal Reserve refrained from delivering fresh stimulus measures at the end of its policy meeting. In Japan, Toyota Motor is trading higher, after the company reported a 26% surge in US sales in July. Ibiden jumped as it announced a buy-back programme. In Hong-Kong, Orient Overseas International paced losses, as it reported a sharp decline in first-half profit. In South Korea, Korea Gas gained value, as it discovered additional gas reserves at an offshore gas field in Mozambique.

Nikkei 225 index is trading 0.3% higher at 8,669.5. Hang Seng index is trading 0.4% lower at 19,745.5, while Kospi index is trading 0.1% higher at 1,881.1.

UK Market Snapshot

UK markets closed higher yesterday, as robust corporate-earnings reports, and optimistic labour market data from the US overweighed weak domestic manufacturing data for July. Next climbed 6.5%, after the company raised its full-year guidance following better-than-expected first-half results. Standard Chartered gained 3.6%, after it posted first-half profit that surpassed market expectations. Amongst other banks, HSBC Holdings, Lloyds Banking, Royal Bank of Scotland and Barclays advanced between 0.2% and 1.3%, as risk appetite improved among investors. Antofagasta gained 2.4%, after it reported a 9.1% increase in copper output for the second-quarter. Xstrata added 1.5%, amid speculation that Glencore might increase its takeover offer this month. Shire gained 4.8%, as its second-quarter results surpassed market expectations and as it reassured investors about outlook despite increasing generic drug competition.

FTSE 100 added 1.4%, to settle at 5,712.8. FTSE 250 rose 0.4%, to close at 11,186.2.

European Market Snapshot

Other European markets closed mostly higher yesterday, as optimism that the US Federal Reserve and the ECB would take necessary action to provide economic stability, overshadowed weak manufacturing data from the UK and the US and comments from Germany’s Bundesbank. Nokia surged 6.2%, amid speculation that Lenovo was interested in acquiring the firm. Chemical company, Arkema soared 5.7%, after it reported better-than-expected second-quarter earnings. Schneider Electric rallied 4.7%, after the company posted upbeat first-half operating profit, helped by cost-cutting and currency movements. However, BMW dropped 2.9%, after it posted a decline in its second-quarter profit amid higher spend on new models and severe pricing competition. Peers, Daimler, Peugeot and Volkswagen eased between 0.6% and 1.4%.

FTSEurofirst 300 index rose 0.5% to 1,068.2. German DAX Xetra 30 eased 0.3% to 6,754.5. French CAC-40 closed 0.9% higher at 3,321.6.

Commodities

In Asia, crude oil for September delivery is trading 0.1% or $0.08 lower at $88.83 per barrel. Yesterday, crude oil for September delivery rose 1.0% or $0.85 to settle at $88.91 per barrel, after the US Energy Information Administration (EIA) reported a larger-than-expected 6.5 million barrel drop in domestic crude oil inventories for the week ended July 27, the biggest decline since December. However, some gains were pared after the US Federal Reserve, at the end of its two-day policy meeting, offered no new monetary stimulus but signalled further bond buying ahead to support the economic recovery.

Gold for immediate delivery is trading marginally higher today, at $1,602.75 per ounce. Gold for August delivery settled down 0.4% or $6.80 at $1,603.7 per ounce yesterday, after the US Federal Reserve held off on increasing stimulus measures, disappointing investors and lowering demand for the precious metal.

Currencies

At 0400 BST today, the GBP is trading slightly lower against the USD at $1.5541, 0.1% lower against the EUR at €1.2692, and 0.1% higher against the JPY at ¥121.97, ahead of Bank of England’s interest rate decision.

The EUR is trading marginally higher against the USD at $1.2245. The EUR is trading 0.2% higher against the JPY at ¥96.09. However, gains in the EUR were capped, ahead of the Spanish bond auction that is scheduled later in the day.

The JPY is trading lower against its major peers, after the International Monetary Fund (IMF) stated that it is “moderately overvalued,” easing the way for Japanese officials to intervene in the currency market.

The AUD is trading higher against the USD, after data showed that retail sales in Australia rose more-than-expected in June. However, gains were capped, as hopes faded that the ECB officials meeting would offer further stimulus measures to resolve the region’s debt crisis.

Yesterday, the USD ended higher against it major counterparts, after the US Federal Reserve refrained from introducing a third round of quantitative easing to stimulate the economy and maintained its benchmark rate unchanged at historic lows.

The EUR ended lower against the USD, after a report indicated that eurozone manufacturing PMI fell more than initially estimated in July.

The GBP closed lower against the EUR and the USD, after reports revealed that UK house prices declined more-than-expected in July and UK manufacturing contracted at fastest pace since 2009 in July.

August 01, 2012 Financial Market Summary

DJIA shed 0.5% to settle at 13,008.7. NASDAQ ticked down 0.2% to close at 2,939.5. S&P 500 inched 0.4% lower to end at 1,379.3.

Nikkei 225 index is trading 1.1% lower at 8,601.6.

FTSE 100 shed 1.0%, to settle at 5,635.3.

FTSEurofirst 300 index eased 0.9% to 1,063.4.

In Asia, crude oil for September delivery is trading 0.3% or $0.22 lower at $87.84 per barrel.

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5674, slightly higher against the EUR at €1.2748, and 0.2% lower against the JPY at ¥122.23.

US Market Snapshot

US markets slid modestly yesterday, ahead of the Federal Reserve policy decision on Wednesday, as investors remained concerned that any additional monetary stimulus by the US central bank would not be enough to bolster the domestic economy. Coach tumbled 18.6%, leading the laggards on the S&P 500 index, as its fourth-quarter sales missed market expectations. Peer, Tiffany & Co shed 4.0%. Health-insurer, Humana slumped 12.7%, as it reported a drop in its second-quarter profit and lowered its full-year profit outlook. Facebook shares reached another new low, declining 6.2%, as investors continued to fret over its last week's earnings report that showed a deceleration in user growth and as the company issued no guidance. 3-D technology company, RealD plunged 23.0%, as its first-quarter income trailed analyst estimates.

DJIA shed 0.5% to settle at 13,008.7. NASDAQ ticked down 0.2% to close at 2,939.5. S&P 500 inched 0.4% lower to end at 1,379.3.

Asian Market Snapshot

Asian markets are trading mostly lower this morning tracking negative cues from Wall Street overnight, as China’s manufacturing activity expanded at the slowest pace in eight months and after South Korea's exports fell sharply from a year earlier in July. In Japan, shipbuilder, Sumitomo Heavy Industries slumped as it cut its profit outlook sharply, while construction machinery maker, Komatsu is traded lower as it posted an 18.5% year-on-year drop in its quarterly operating profit in April-June period. In Hong Kong, Sands China is trading lower, amid a report that one of its subsidiary was being investigated by the Macau government in connection with the transfer of some data to the US. In South Korea, Retailer Hyundai Department Store declined after it reported a 6.9% fall in operating profit for the second-quarter.

Nikkei 225 index is trading 1.1% lower at 8,601.6. Hang Seng index is trading 0.1% higher at 19,817.6.Kospi index is trading 0.2% lower at 1,878.4.

UK Market Snapshot

UK markets closed lower yesterday, after Germany ruled out granting a banking license for Europe's permanent bailout fund and ahead of the central-bank meetings. BP slumped 4.4%, after it posted second-quarter profit that missed market expectations. Tullow Oil, BG Group and Petrofac eased between 0.8% and 3.2%, tracking a drop in crude oil prices. Banks, Royal Bank of Scotland, Standard Chartered, Lloyds Banking and HSBC Holdings declined between 1.7% and 3.8%, as risk appetite decreased among investors. CRH plunged 5.8%, amid concerns, after its German sector peer HeidelbergCement lowered its 2012 guidance for US aggregates volumes. Shire dropped 3.9%, amid discussions that it could cut growth guidance following the launch of a generic version of its drug. ITV declined 1.7%, after Deutsche Bank downgraded the stock to “Sell” from “Hold”.

FTSE 100 shed 1.0%, to settle at 5,635.3. FTSE 250 declined 0.9%, to 11,136.7.

European Market Snapshot

Other European markets closed lower yesterday, following disappointing corporate earnings reports and as investors maintained caution before the outcome of the US Federal Reserve meeting. Markets were also weighed down on comments from a Bundesbank official that the bank remained opposed to restarting the European Central Bank’s (ECB) bond-buying program. UBS plunged 5.9%, after it posted weaker-than-anticipated second-quarter earnings. Hugo Boss shed 5.5%, after it posted quarterly gross-profit margins that fell short of analyst estimates. SGL Carbon declined 4.6%, after the company cut its full-year EBIT forecast, citing sluggish demand for the carbon fibers and composites business. Michelin dropped 2.8%, after a broker downgraded the stock to “Neutral” from “Overweight”.

FTSEurofirst 300 index eased 0.9% to 1,063.4. German DAX Xetra 30 fell marginally to close at 6,772.3. French CAC-40 closed 0.9% lower at 3,291.7.

Commodities

In Asia, crude oil for September delivery is trading 0.3% or $0.22 lower at $87.84 per barrel. Yesterday, crude oil for September delivery dropped 1.9% or $1.72 to $88.06 per barrel, tracking a decline in equity markets and as hopes dimmed that the US Federal Reserve would deliver additional stimulus measures following an unexpected rise in US consumer confidence and business activity data for July. Oil prices also fell, after German Chancellor Angela Merkel’s coalition rejected granting the permanent euro rescue fund access to ECB liquidity via a banking license.

Gold for immediate delivery is trading 0.1% higher today, at $1,614.75 per ounce. Gold for August delivery settled down 0.6% or $9.20 at $1,610.50 per ounce yesterday, as investors fretted about the prospects for new stimulus measures from central banks in the US and Europe.

Currencies

At 0400 BST today, the GBP is trading marginally higher against the USD at $1.5674, slightly higher against the EUR at €1.2748, and 0.2% lower against the JPY at ¥122.23.

The EUR is trading slightly higher against the USD at $1.2296, as investors await the outcome from the two-day meeting gathering of US Federal Reserve, and the ECB and Bank of England meetings that are scheduled tomorrow.

The EUR is trading 0.2% lower against the JPY at ¥95.88.

The AUD is trading lower against its major peers, as demand for the high-yielding currency faded, after reports revealed that China’s manufacturing activity slowed to its lowest pace in eight months in July and Australian manufacturing dropped to the lowest level in three years in July.

Yesterday, the EUR ended higher against its major counterparts, on expectations that the ECB might take further actions to contain the debt crisis. The EUR also rose, after French President Francois Hollande and Italian Prime Minister Mario Monti reaffirmed their commitment to preserve the euro zone. The USD ended lower against the EUR. However, upbeat US consumer confidence and business activity data for July helped limit losses. The GBP closed lower against the EUR and the USD, after a report indicated that UK consumer confidence remained unchanged in July as the recession deepened. The GBP also fell, after Moody’s Investors Service lowered its forecast for UK economic growth and stated that the government would struggle to meet its debt-reduction targets. The CAD closed lower against the USD, after data showed that the Canadian’s GDP grew less-than-expected in May.