June 21, 2012 Financial Market Summary

DJIA edged down 0.1% to settle at 12,824.4. NASDAQ advanced marginally to close at 2,930.5. S&P 500 inched 0.2% lower to end at 1,355.7.

Nikkei 225 index is trading 1.0% higher at 8,836.7.

FTSE 100 added 0.6% to settle at 5,622.3.

FTSEurofirst 300 index rose 0.5% to end at 1,014.3.

In Asia, crude oil for August delivery is trading 3.5% or $2.97 lower at $81.06 per barrel.

At 0400 BST today, the GBP is trading 0.2% lower against the USD at $1.5679, 0.1% lower against the EUR at €1.2377, and flat against the JPY at ¥124.77.

US Market Snapshot

US markets ended mostly lower yesterday, with the S&P 500 index snapping its four sessions winning streak, as the Federal Reserve sharply lowered its outlook for the US economic growth amid a slowdown in hiring. Procter & Gamble lost 2.9%, after it trimmed its earnings outlook for the current quarter and for 2013. Adobe Systems fell 2.7%, as it cut its full-year outlook. However, Cisco Systems rallied 1.9%, after a broker upgraded the stock to “Outperform” from “Market Perform”. Idenix Pharmaceuticals surged 14.3%, after it announced upbeat interim results for its hepatitis C drug study. Applied Materials added 3.4%, following an upgrade from an “Equal-Weight” rating to an “Over-Weight” rating at Barclays Capital. DJIA edged down 0.1% to settle at 12,824.4.

NASDAQ advanced marginally to close at 2,930.5. S&P 500 inched 0.2% lower to end at 1,355.7.

Asian Market Snapshot

Asian markets are trading mostly lower this morning, after data showed that China’s manufacturing activity weakened further in June and as a lack of fresh stimulus measures from the US Federal Reserve disappointed investors. In Japan, Renesas Electronics gained value, following report that private equity firms, KKR and Silver Lake might invest in the company. Honda Motor traded higher, after Credit Suisse raised its price target on the stock. In Hong Kong, China Petroleum & Chemical lost value, on news that the company was considering bidding for assets owned by Chesapeake Energy. In South Korea, Himart traded lower after SK Networks and Shinsegae announced yesterday that they had dropped out of the bidding to acquire a significant stake in the firm.

Nikkei 225 index is trading 1.0% higher at 8,836.7. Hang Seng index is trading 0.9% lower at 19,347.6, while the Kospi index is trading 0.7% lower, at 1,891.1.

UK Market Snapshot

UK markets closed higher yesterday, amid hopes of further monetary easing from the Bank of England, after minutes from the Monetary Policy Committee’s latest meeting showed more members voted for further monetary policy easing. Sage Group jumped 5.5%, after it acquired a controlling stake in business software writer Folhamatic of Brazil, while ITV rose 3.0%, amid news that it might be a takeover target for a private-equity firm. Aviva rallied 4.7%, on reports that European Union was mulling new capital rules for life insurers over seven years, easing the burden on the sector. Invensys jumped 26.6%, amid speculation that Emerson Electric has expressed an interest in buying all or part of the firm. Rio Tinto gained 1.4%, after it mulled to invest a further $4.2 billion in its iron-ore operations in Australia and Guinea. Standard Chartered and Royal Bank of Scotland added 1.6% and 1.8%, respectively, as risk appetite improved among investors.

FTSE 100 added 0.6% to settle at 5,622.3, while FTSE 250 soared 1.4% to 11,022.8.

European Market Snapshot

Other European markets closed in the positive territory yesterday, as investors looked ahead to the results of the 2-day FOMC meeting, amid speculation that the US Federal Reserve would expand support for the economy. Retailer, Hennes & Mauritz climbed 4.8%, after the company reported a sharp rise in its second-quarter profit. PSA Peugeot Citroen rallied 6.5%, on news that France might introduce a tax on large luxury cars to help slow a drop in demand for small sized cars, while Renault gained 2.8%, extending its earlier session gains. Among utilities, RWE added 3.6% after Nomura upgraded the stock to “Neutral” from “Reduce”, while EON advanced 2.9% after the same broker raised its recommendation on the stock to “Buy” from “Neutral”.

FTSEurofirst 300 index rose 0.5% to end at 1,014.3. German DAX Xetra 30 advanced 0.5% to 6,392.1. French CAC-40 closed 0.3% higher at 3,126.5.

Commodities

In Asia, crude oil for August delivery is trading 3.5% or $2.97 lower at $81.06 per barrel. Yesterday, crude oil futures for July delivery declined 2.7% or $2.23 to end at $81.90 per barrel, after the Energy Information Administration data reported that crude supplies rose by 2.9 million barrels in the week ended 15 June, their highest level since 1990 and on comments by the US Fed Chairman Ben Bernanke that offered little hope for further monetary easing. Crude oil prices were only mildly influenced by another round of inconclusive talks between the major world powers and Iran over its nuclear program. The July contract expired yesterday.

Gold for immediate delivery is trading 0.1% lower today, at $1,601.97 per ounce. Gold for August delivery declined 0.5% or $7.40 to $1,615.80 per ounce yesterday, as investors remained disappointed after the US Fed fell short of announcing another round of quantitative easing but extended its “Operation Twist” program as expected.

Currencies

At 0400 BST today, the GBP is trading 0.2% lower against the USD at $1.5679, 0.1% lower against the EUR at €1.2377, and flat against the JPY at ¥124.77.

The EUR is trading 0.1% lower against the USD at $1.2669, as Spain prepares to sell bond maturing 2014, 2015 and 2017 amid signs the debt crisis is hampering economic growth in the euro region. EUR also traded lower, amid speculation that a preliminary report today might show European services and manufacturing contracted in June at the fastest pace in three years. However, gains in USD were limited after the US Federal Reserve stated that it stands ready to implement further stimulus.

The EUR is trading 0.1% higher against the JPY at ¥100.81, ahead of the European finance ministers meeting today to discuss the region’s debt crisis.

The NZD is trading higher against most of its major peers, following a report that showed New Zealand’s economy grew at the fastest pace in five years in the March quarter, as food manufacturing and farm production increased

Yesterday, the USD closed lower against the EUR, on prospects that the US Federal Reserve would implement fresh round of stimulus measures to bolster the economy, if needed. The GBP closed lower against the USD and the EUR after minutes of the Bank of England’s June meeting showed more members supported additional stimulus and after a report showed UK jobless-benefit claims unexpectedly rose in May. The CAD finished lower against the USD after the US Federal Reserve trimmed its US economic growth estimates for 2012 amid a slowdown in hiring.

June 20, 2012 Financial Market Summary

DJIA climbed 0.7% to settle at 12,837.3. NASDAQ surged 1.2% to close at 2,929.8. S&P 500 soared 1.0% to end at 1,358.0.

Nikkei 225 index is trading 0.8% higher at 8,722.2.

FTSE 100 surged 1.7% to settle at 5,586.3.

FTSEurofirst 300 index rose 1.6% to end at 1,009.6.

In Asia, crude oil for July delivery is trading 0.2% or $0.14 lower at $83.89 per barrel.

At 0400 BST today, the GBP is trading marginally up against the USD at $1.5723, marginally higher against the EUR at €1.2402, and 0.3% lower against the JPY at ¥123.96.

US Market Snapshot

US markets closed higher yesterday, amid speculation that the Federal Reserve would unveil additional stimulus measures to stimulate the US economy. A better-than-expected Spanish debt auction and a jump in US building permits aided the momentum. Citigroup and Bank of America rallied 3.5% and 4.5%, respectively, amid reports that the Federal Housing Finance Agency would consider to help banks decrease their mortgages buybacks. FedEx gained 2.8%, as it mulled to step up cost-cutting measures to boost profit margins. Microsoft added 2.9%, after it unveiled “Surface”, a windows-powered tablet computer, while Oracle advanced 3.1%, as its fourth-quarter profit surpassed market expectations.

DJIA climbed 0.7% to settle at 12,837.3. NASDAQ surged 1.2% to close at 2,929.8. S&P 500 soared 1.0% to end at 1,358.0.

Asian Market Snapshot

Asian markets are trading higher this morning, taking cues from overnight gains on Wall Street, on hopes of fresh round of stimulus by the US Federal reserve to bolster its economy. However, gains were restricted as reports showed Japan's trade deficit widened more-than-expected in May. In Japan, Daio Paper gained value, on news that Hokuetsu Kishu Paper would acquire a 20.0% stake in the company. Honda Motor paced higher, after Nomura upgraded the stock to “Buy” from “Neutral”. In Hong Kong, communications stock, Tencent Holdings traded higher, after the company announced that it would acquire a minority stake in Epic Games. In South Korea, LG Display paced higher following report that the company has obtained maximum revenue and market share in selling of 9-inch-or-larger liquid-crystal displays.

Nikkei 225 index is trading 0.8% higher at 8,722.2. Hang Seng index is trading 0.4% higher at 19,495.2, while the Kospi index is trading 0.3% higher, at 1,898.0.

UK Market Snapshot

UK markets ended higher yesterday, as a fall in UK inflation reignited talk of more easing by the Bank of England and as Spanish debt sale surpassed target, albeit higher borrowing costs. Market sentiment was also buoyed as Greece's political parties continued talks to form a new government. ITV advanced 2.8%, amid speculation about private equity interest. Whitbread rallied 6.4%, as its first-quarter revenue came ahead of expectations. Weir Group rallied 4.6%, after the company reaffirmed its full-year guidance. Antofagasta, Vedanta Resources, Rio Tinto and ENRC added between 2.1% and 5.1%, amid hopes that stimulus measures in China would boost demand for metals. ARM Holding advanced 3.6%, after Microsoft stated that it would use the company’s chips in a version of its new Surface tablet computer. Standard Chartered gained 3.5%, as BofA Merrill Lynch upgraded the stock to “Buy” from “Neutral”.

FTSE 100 surged 1.7% to settle at 5,586.3, while FTSE 250 soared 1.4% to end at 10,870.9.

European Market Snapshot

Other European markets closed sharply higher yesterday, following a successful Spanish bill auction and as Greece moved closer to forming a coalition government. Moreover, optimism that the US Fed would announce additional stimulus at its meeting, outweighed a higher-than-expected decline in German investor confidence. Banco Santander, BNP Paribas and Commerzbank, gained between 2.7% and 3.5%, as risk appetite improved among investors. SAP added 1.5%, after its US peer, Oracle, reported better-than-expected fourth-quarter results. Roche Holding added 3.4%, after the company forged an alliance Seaside Therapeutics to develop treatments for fragile X syndrome and autism spectrum disorders.

FTSEurofirst 300 index rose 1.6% to 1,009.6. German DAX Xetra 30 rose 1.8% to 6,363.4. French CAC-40 closed 1.7% higher at 3,117.9.

Commodities

In Asia, crude oil for July delivery is trading 0.2% or $0.14 lower at $83.89 per barrel. Yesterday, crude oil for July delivery added 0.9% or 76 cents to $84.03 per barrel, as energy demand prospects improved, after the Spanish government sold more than expected at a debt auction and amid hopes of further quantitative easing by the US central bank at the FOMC meeting. Additionally, favourable US housing data and positive developments in Greece also supported crude oil prices.

Gold for immediate delivery is trading marginally lower today, at $1,620.65 per ounce. Gold for August delivery retreated 0.2% or $3.80 to $1,623.20 per ounce yesterday, as demand for the safe haven asset waned after Spain successfully sold more than the targeted amount at a debt auction and Greece moved closer to forming a pro-bailout government. However, hopes for further monetary easing by the US Fed at its two-day Federal Open Market Committee meeting supported gold prices.

Currencies

At 0400 BST today, the GBP is trading marginally up against the USD at $1.5723, marginally higher against the EUR at €1.2402, and 0.3% lower against the JPY at ¥123.96.

The EUR is trading marginally down against the USD at $1.2676, ahead of the Spanish debt auction this week, amid mounting fears that the European leaders would struggle to prevent the spread of region’s sovereign debt crisis. Spain is scheduled to sell debt tomorrow maturing in 2014, 2015 and 2017.

The EUR erased some of its gains and is trading 0.3% lower against the JPY at ¥99.95, after Spain sold its maximum target of 12 and 18-month bills yesterday, despite a rise in borrowing costs.

The NZD is trading lower against the USD, after data showed that the New Zealand’s   current-account deficit widened more-than-forecast in the first-quarter.

Yesterday, the USD ended lower against the EUR, as investors speculated that the US Fed officials might announce new monetary easing steps on Wednesday, after the end of its two-day policy meeting. The GBP closed lower against the USD and the EUR, amid speculation that the Bank of England would resume its asset purchases programme to stimulate the economy, following a report that showed inflation in the UK slowed to the least since November 2009. The AUD and NZD finished higher against the USD, after the European Union stated that it might renegotiate Greece’s bailout, spurring demand for high yielding assets.

June 19, 2012 Financial Market Summary

DJIA edged down 0.2% to settle at 12,741.8. NASDAQ advanced 0.8% to close at 2,895.3. S&P 500 ticked up 0.1% to end at 1,344.8.

Nikkei 225 index is trading 0.3% lower at 8,698.6.

FTSE 100 edged up 0.2% to settle at 5,491.1.

FTSEurofirst 300 index closed marginally higher at 993.7.

In Asia, crude oil for July delivery is trading marginally lower at $83.24 per barrel.

At 0400 BST today, the GBP is trading marginally up against the USD at $1.5689, 0.1% lower against the EUR at €1.2445, and marginally lower against the JPY at ¥123.91.

US Market Snapshot

US markets closed mostly higher yesterday, as some positive sentiment on Greece and signs of revival in the US housing market countered rising fears about Spain. Clean energy providers, LDK Solar, SunPower, First Solar and Suntech Power Holdings added between 1.8% and 9.2%, after the Japanese government introduced tax incentives for solar panels. Homebuilders, Beazer, Toll Brothers and Pulte advanced between 1.9% and 3.4%, as US homebuilder sentiment for June rose to its highest level in five years. However, financial stocks, Citigroup and Morgan Stanley retreated 2.7% and 3.4%, respectively, amid erosion of risk appetite among investors. Bank of America dropped 1.8%, as it neared a deal to dispose its non-US wealth management operations to Julius Baer.

DJIA fell 0.2% to settle at 12,741.8. NASDAQ rose 0.8% to 2,895.3. S&P 500 gained 0.1% to end at 1,344.8.

Asian Market Snapshot

Asian markets are trading lower this morning, after borrowing costs in Spain reached to a euro-area record and amid fading optimism that Greece’s election of pro-bailout parties would calm the region’s debt crisis. In Japan, Nomura Holdings lost value, after Reuters reported that Japan had excluded the company from working on the government's sale of Japan Tobacco shares. In Hong Kong Pacific Basin Shipping lost value after the company forecasted a net loss for the six months ending in June. In South Korea, Samsung Electronics traded lower, after Tong Yang Securities stated in a report that the company’s second quarter profit was likely to be lower than its initial forecasts.

Nikkei 225 index is trading 0.3% lower at 8,698.6. Hang Seng index is trading 0.2% lower at 19,388.8, while the Kospi index is trading 0.1% lower, at 1,890.8.

 UK Market Snapshot

UK markets closed on a mixed note yesterday, with the FTSE 100 index eking out gains, as the Greek-poll results alleviated fears of an imminent disintegration of the eurozone, despite rising Spanish and Italian bond yields. Burberry rallied 2.9%, following positive comments by Deutsche Bank on the luxury goods sector, while Rolls-Royce climbed 2.1%, as it bagged a submarine contract worth over £1 billion with the Ministry of Defence. Media major, WPP rose 0.8%, following an acquisition of a majority stake in Slovakian advertising agency Communication Group. Building materials group, Wolseley added 2.6%, after analysts highlighted that it might return up to £1.5 billion to shareholders or it might move for a buyback. However, Royal Bank of Scotland, Lloyds Banking Group and Standard Chartered fell between 1.7% and 5.0%, after Nomura retained its “Neutral” view of the UK banking sector.

FTSE 100 edged up 0.2% to settle at 5,491.1, while FTSE 250 inched 0.1% lower to end at 10,721.4.

European Market Snapshot

Other European markets closed mixed yesterday, as an election victory for the pro-bailout parties in the Greek elections offset escalating concerns about eurozone following a sharp rise in Spanish benchmark 10-year bond yields. MAN added 2.0%, after the company announced that its owner, Volkswagen, might increase its stake in the company in next 12 months. PPR rose 1.1%, after Deutsche Bank issued positive comments on the luxury-goods industry. Utility sector stock, Electricite de France gained 2.8%, after Exane BNP Paribas upgraded the stock to “Outperform” from “Neutral”. However, Carrefour declined 3.2%, after its CEO, Georges Plassat, stated that it would take at least three years to turnaround the company. Bankia, Banco Santander and BBVA declined between 4.2% and 9.0%, after data showed that bad loans for banks in Spain continued to rise in April.

FTSEurofirst 300 index closed marginally higher at 993.7. German DAX Xetra 30 advanced 0.3% to 6,248.2. French CAC-40 closed 0.7% lower at 3,066.2.

Commodities

In Asia, crude oil for July delivery is trading marginally lower at $83.24 per barrel. Yesterday, crude oil for July delivery declined 0.9% or 76 cents to end at $83.27 per barrel, as fading optimism over the Greek election results and a surge in Spanish borrowing costs added to concerns the eurozone debt crisis would curb demand for crude oil. However, lack of any progress in talks between six world powers and Iran over Tehran's nuclear program continued to support crude oil prices.

Gold for immediate delivery is trading 0.1% higher today, at $1,628.24 per ounce. Gold for August delivery eased 0.1% or $1.10 to settle at $1,627 per ounce yesterday, as a positive outcome of the Greek elections dampened speculations that Greece might exit the eurozone, decreasing the metal’s safe haven demand. Investors also remained cautious ahead of the Federal Open Market Committee (FOMC) meeting on Tuesday and Wednesday.

Currencies

At 0400 BST today, the GBP is trading marginally up against the USD at $1.5689, 0.1% lower against the EUR at €1.2445, and marginally lower against the JPY at ¥123.91.

The EUR is trading 0.1% higher against the USD at $1.2606. The currency is trading marginally higher against the JPY at ¥99.58. Earlier, the EUR was trading lower against the USD and JPY, amid mounting speculation that European lawmakers would struggle to contain region’s debt crisis, following a sharp rise in Spanish borrowing costs.

The USD is trading lower against most of its major peers, ahead of the US Federal Reserve meeting, amid speculation that policy makers would take further monetary easing steps to bolster the country’s economy.

The AUD is trading lower against the JPY, after the Reserve Bank of Australia stated that it had lowered interest rates this month after a “finely balanced” discussion.

Yesterday, the EUR ended lower against the USD, as Spanish 10-year bond yields rose to euro-area high levels.

The USD finished higher against the JPY, after National Association of Home Builders reported a modest increase in the US homebuilder confidence in June.

The AUD closed higher against the USD, after Treasury Secretary, Martin Parkinson, stated that the country has capacity to respond to an economic shock from Europe.

June 18, 2012 Financial Market Summary

DJIA rallied 0.9% to settle at 12,767.2. NASDAQ surged 1.3% to close at 2,872.8. S&P 500 gained 1.0% to end at 1,342.8.

Nikkei 225 index is trading 1.8% higher at 8,720.3.

FTSE 100 edged up 0.2% to settle at 5,478.8. FTSEurofirst 300 index added 1.0% to 993.2.

In Asia, crude oil for July delivery is trading 1.1% or $0.91 higher at $84.94 per barrel.

At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5706, 0.3% lower against the EUR at €1.2375, and 0.8% higher against the JPY at ¥124.44.

US Market Snapshot

US markets closed higher on Friday, amid speculation that major central banks would take steps to stabilize the financial markets, if needed, after the crucial election in Greece on Sunday. Separately, stocks extended gains, on hopes that the recent slew of weak domestic economic data would prompt the Federal Reserve to announce new stimulus to boost the flagging economy at its next meeting. Travelers, JP Morgan Chase, American Express and Bank of America added between 0.5% and 3.1%, amid hopes of coordinated actions by major central banks, ahead of a G-20 summit. Insurer, American International Group advanced 1.5%, after it reduced outstanding support from the US government by more than $152 billion. Microsoft gained 2.3%, following its acquisition of social network Yammer for $1.2 billion.

DJIA rallied 0.9% to settle at 12,767.2. NASDAQ surged 1.3% to close at 2,872.8. S&P 500 gained 1.0% to end at 1,342.8.

Asian Market Snapshot

Asian markets are trading higher this morning, as concerns that Greece would leave the 17-member currency bloc eased after a Greek national election exit-poll results showed parties supporting austerity measures won enough seats to control parliament and after China’s central bank forecasted a rebound in the country’s economy in the next quarter. In Japan, Ibiden gained value, after Merrill Lynch upgraded the stock to “Buy” from “Neutral”. Honda traded higher, after a newspaper reported that the company would focus on small-sized cars in the country. In Hong Kong, Petrochina traded higher, following a rise in crude oil prices. In South Korea, Hyundai Heavy Industries paced higher, after the company stated that it had bagged orders worth $600 million to build oil and gas rigs.

Nikkei 225 index is trading 1.8% higher at 8,720.3. Hang Seng index is trading 1.7% higher at 19,562.6, while the Kospi index is trading 2.1% higher, at 1,896.8.

UK Market Snapshot

UK markets closed higher on Friday, after the British Chancellor of the Exchequer stated that the Bank of England would activate an emergency lending program, if required, to combat an escalation of the eurozone debt crisis. However, gains were capped following reports that the UK posted its second largest trade deficit and construction output fell sharply in April. Banks, Barclays, Lloyds Banking Group and Royal Bank of Scotland rallied between 4.2% and 7.9%, as the Bank of England and the UK Treasury planned to inject £180 billion into the UK economy. Man Group climbed 5.3%, after Merrill Lynch restated a “Buy” advice on the stock. Miners, BHP Billiton, Rio Tinto and Vedanta Resources gained between 1.3% and 6.3%, in line with a rise in base metal prices. Energy stocks, BG Group and BP added 1.1% and 1.6%, respectively, as oil prices gained ground.

FTSE 100 edged up 0.2% to settle at 5,478.8, while FTSE 250 surged 1.5% to end at 10,729.7.

European Market Snapshot

Other European markets rallied on Friday, amid reports that central banks would inject liquidity into the financial system if weekend elections in Greece lead to further turmoil and credit crunch in the euro region. Financial sector stocks, Credit Agricole, Commerzbank and Deutsche Bank surged between 3.8% and 6.3%, as risk appetite increased among investors. Carmakers, Daimler, Volkswagen and Peugeot, gained between 1.8% and 2.4% amid optimism that global demand for automobiles would recover. Total, Eni and Repsol gained between 1.2% and 3.0%, following higher crude oil prices. Carrefour soared 5.9%, after the company announced that it would sell its stake in its Greek unit, while Hennes & Mauritz rose 2.1%, after the company’s second-quarter sales surpassed market expectations.

FTSEurofirst 300 index added 1.0% to 993.2. German DAX Xetra 30 advanced 1.5% to 6,229.4. French CAC-40 closed 1.8% higher at 3,087.6.

Commodities

In Asia, crude oil for July delivery is trading 1.1% or $0.91 higher at $84.94 per barrel. On Friday, crude oil for July delivery rose 0.1% or 12 cents to settle at $84.03 per barrel, boosted on speculation that weak economic data would prompt the US federal Reserve to introduce stimulus measures at its next meeting and after the OPEC stated that its members would reduce the group's output to adhere to its 30 million barrels per day (bpd) output ceiling. However, gains were limited, as investors continued to be focused on the eurozone crisis ahead of the Greece parliamentary elections on Sunday.

Gold for immediate delivery is trading 0.3% lower today, at $1,622.93 per ounce. Gold for August delivery added 0.5% $8.50 to settle at $1,628.10 per ounce on Friday, amid reports that global central banks stood ready to inject liquidity into the financial system to avert any market disruptions following the weekend Greek elections and expectations of new monetary stimulus from the US Federal Reserve.

Currencies

At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5706, 0.3% lower against the EUR at €1.2375, and 0.8% higher against the JPY at ¥124.44.

The EUR is trading 0.4% higher against the USD at $1.2691.

The EUR is trading 1.1% higher against the JPY at ¥100.55.

The EUR is trading higher against the USD and the JPY, after an exit poll results showed that Greece’s two largest pro-bailout parties, New Democracy and Pasok, had won enough seats to build a parliamentary majority.

The AUD is trading higher against the USD, as easing concerns about the eurozone increased demand for riskier assets. Australia’s treasurer reported that mineral exploration spending in the country reached a record in March.

The NZD is trading higher against the JPY, after data showed that New Zealand’s services industries grew in May.

On Friday, the EUR closed higher against the USD, amid reports that major central banks would inject liquidity into the markets to avert any further turmoil following the weekend elections in Greece.

The USD ended lower against most of its major peers, after reports showed that the US consumer confidence declined in June to the lowest level this year, and industrial production edged down 0.1% in May.

June 15, 2012 Financial Market Summary

DJIA soared 1.2%, to settle at 12,651.9. NASDAQ climbed 0.6%, to close at 2,836.3. S&P 500 jumped 1.1% to finish at 1,329.1.

Nikkei 225 index is trading 0.3% higher at 8,595.9.

FTSE 100 edged down 0.3% to settle at 5,467.1.

FTSEurofirst 300 index eased 0.3% to 983.8.

In Asia, crude oil for July delivery is trading 0.9% or $0.70 higher at $84.61 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5546, 0.1% lower against the EUR at €1.2310, and 0.6% lower against the JPY at ¥122.79.

US Market Snapshot

US markets advanced yesterday, as weak domestic economic data fuelled speculation of further monetary easing from the Federal Reserve and amid reports that major central banks stood ready to provide liquidity to the financial markets following Greece's crucial election on Sunday. International Game Technology, the top gainer on the S&P 500 index, surged 14.4%, as it revealed plans to buy back up to $1 billion in stock. Exxon Mobil and Chevron gained 1.9% and 1.8%, respectively, tracking a rise in crude oil prices. Regions Financial rose 2.3%, after Goldman Sachs upgraded the stock to “Buy” from “Neutral”. Apache, EQT and Cabot Oil & Gas rallied between 3.7% and 8.6%, following an unexpected bullish weekly storage report. Kroger rallied 6.1%, after its first quarter earnings topped estimates.

DJIA soared 1.2%, to settle at 12,651.9. NASDAQ climbed 0.6%, to close at 2,836.3. S&P 500 jumped 1.1% to finish at 1,329.1.

Asian Market Snapshot

Asian markets are trading mostly higher this morning, tracking overnight gains in US equity markets, amid reports that major central banks might take coordinated measures to bolster eurozone economies, if needed, following the weekend Greece elections. In Japan, Renesas Electronics gained value, following reports that it would close or sell half of its plants and cut as much as 30% of its workforce. DeNA traded higher after the company announced that it would buy back as much as 10.0% of its shares. In Hong Kong, Bank of China, gained value, on news that one of its unit had started an oil products trading desk in Singapore. In South Korea, SK Hynix lost value, following report that one of its stakeholders, Woori Bank, would sell a 1.4% stake in the company.

Nikkei 225 index is trading 0.3% higher at 8,595.9. Hang Seng index is trading 1.1% higher at 19,009.1, while the Kospi index is trading 0.7% lower, at 1,858.7.

UK Market Snapshot

UK markets closed on a mixed note yesterday, with the FTSE 100 index drifting lower, after Moody’s investor services slashed Spain’s credit rating and as borrowing cost in Italy jumped. British Sky Broadcasting Group (BSkyB) and BT Group both dropped 3.5%, amid fears that both had overpaid to acquire Premier League television rights. Further, weighing on BSkyB, Numis Securities slashed its rating to “Add” from “Buy”. Miners, Antofagasta, Anglo American, Xstrata and Fresnillo fell between 1.5% and 2.4%, tracking a decline in base metal prices, as Credit Suisse Group and Deutsche Bank, both reduced China’s growth prospects for the year 2012. Tullow Oil lost 2.1%, amid reports that France had suspended offshore drilling permits in French Guiana. However, Premier Farnell rallied 3.7%, after Goldman Sachs added the stock to its “Conviction Buy” list.

FTSE 100 fell 0.3% to settle at 5,467.1, while FTSE 250 edged up 0.3% to close at 10,574.6.

European Market Snapshot

Other European markets closed mostly lower yesterday, ahead of the second round of Greek elections on Sunday, and as both Moody’s Investors Service and Egan-Jones Ratings downgraded Spain’s credit rating. However, losses were restricted after Italy raised the targeted maximum amount at a debt auction. Credit Suisse slumped 10.5%, after the Swiss National Bank urged the bank to bolster its capital base this year. BMW and Daimler lost 2.8% and 2.2%, respectively, after Morgan Stanley trimmed its EPS estimates for the companies by 5.0% to 10.0% for 2012 to 2014. Teleperformance dropped 1.4%, after a broker downgraded the stock to “Underperform” from “Outperform”. Nokia plunged 17.8%, after the company announced that it would cut 10,000 jobs and shuffle the top management.

FTSEurofirst 300 index eased 0.3% to 983.8. German DAX Xetra 30 dropped 0.2% to 6,138.6. French CAC-40 closed 0.1% higher at 3,032.5.

Commodities

In Asia, crude oil for July delivery is trading 0.9% or $0.70 higher at $84.61 per barrel. Yesterday, crude oil for July delivery rose 1.6% or $1.29 to close at $83.91 per barrel, as fuel energy demand concerns eased, on hopes that the US Fed would expand its monetary policy to stimulate growth following a worse-than-expected jobless claims report. Crude oil also gained value, after the Organization of the Petroleum Exporting Countries (OPEC) kept its collective production ceiling unchanged after a meeting in Vienna.

Gold for immediate delivery is trading 0.3% higher today, at $1,625.75 per ounce. Gold for August delivery added 20 cents to settle at $1,619.60 per ounce yesterday, as prospects for further monetary easing by the US Federal Reserve following weak domestic economic data and caution ahead of the key Greece elections this Sunday, increased the precious metal’s investment appeal.

Currencies

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5546, 0.1% lower against the EUR at €1.2310, and 0.6% lower against the JPY at ¥122.79.

The EUR is trading marginally up against the USD at $1.2628. The EUR is trading 0.5% lower against the JPY at ¥99.75, after Moody’s Investors Service downgraded five Dutch banking groups.

The USD is trading lower against most of its major peers, amid speculation that a US data due to be released would show industrial production slowed and consumer confidence fell in the US, raising speculation of further monetary easing by the US Federal Reserve.

The JPY is trading higher against most of its major peers, after the Bank of Japan kept both its asset-purchase fund and credit lending program unchanged at ¥40.0 trillion and ¥30.0 trillion, respectively.

The AUD and the NZD are trading higher against the USD, ahead of a G-20 nations’ summit in Mexico, on 18-19 June, amid optimism that the policymakers would discuss measures to stem European debt crisis, spurring demand for high yielding assets.

Yesterday, the USD ended lower against the EUR, after reports showed that the US consumer price index declined and the initial jobless claims unexpectedly increased in the last week. The NZD closed higher against most of its major peers, after the Reserve Bank of New Zealand Governor, Alan Bollard, refrained from interest rate cut and left its benchmark official cash rate unchanged at2.5% till mid-2013. The GBP closed lower against the EUR, after Chancellor of the Exchequer, George Osborne, shared joint steps with the Bank of England to boost liquidity in the financial markets amid a deteriorating outlook in Europe.

June 14, 2012 Financial Market Summary

DJIA fell 0.6% to 12,496.4. NASDAQ slipped 0.9% to 2,818.6. S&P 500 slid 0.7% to 1,314.9.

Nikkei 225 index is trading 0.2% lower at 8,573.8.

FTSE 100 edged up 0.2% to settle at 5,483.8. FTSEurofirst 300 index eased 0.3% to 987.0.

In Asia, crude oil for July delivery is trading 0.3% or 27 cents higher at $82.89 per barrel.

At 0400 BST today, the GBP is trading marginally down against the USD at $1.5519, 0.1% higher against the EUR at €1.2354, and slightly up against the JPY at ¥123.25.

US Market Snapshot

US markets closed lower yesterday, following a drop in retail sales in May for the second month in a row. Mounting borrowing costs for Italy and Germany coupled with concerns over the outcome of Greek election also weighed on the risk appetite. Auto insurer, Progressive slipped 4.4%, as claims costs rose above the company’s target. Lawn & garden company, Scotts Miracle-Gro declined 6.6%, as it stated that it would miss its full-year target, amid sluggish demand and after RBC slashed its price target.  American Express dropped 2.4%, amid a drop in credit-card spending for April and May. Broker downgrades spurred a selloff in shares of Chesapeake Energy and Urban Outfitters.

DJIA fell 0.6% to 12,496.4. NASDAQ slipped 0.9% to 2,818.6. S&P 500 slid 0.7% to 1,314.9.

Asian Market Snapshot

Asian markets are trading mostly lower this morning, following downbeat US retail sales data and a rise in German and Italian bond yields. Additionally, downgrade of Spain’s sovereign debt rating by Egan-Jones and Moody’s also weighed on market sentiment. Tsugami lost value, after Citigroup stated that order growth for the company’s products has declined. Exporters, Nintendo, Shimano and Honda Motor paced lower, amid demand worries following sluggish US retail sales. In Hong Kong, Esprit Holdings paced lower, after its Chairman also resigned yesterday, following its CEO’s resignation. In South Korea, Daewoo Engineering & Construction gained value, after the company announced that it had bagged a river restoration project worth $349.35 million in Algeria.

Nikkei 225 index is trading 0.2% lower at 8,573.8. Hang Seng index is trading 0.6% lower at 18,910.7, while the Kospi index is trading 0.1% higher, at 1,860.7.

UK Market Snapshot

UK markets closed on a mixed note yesterday, with the FTSE 100 index closing almost flat, as borrowing costs rose at debt auctions by Italy and Germany and after US retail sales dropped in May for the second straight month. Fresnillo, the top gainer on the FTSE 100 index, advanced 4.1%, as silver showed gains during the London session. Shares of drug maker, Shire and insurer, Resolution, benefited from broker upgrades. British Sky Broadcasting rallied 1.4%, amid hopes that it would be awarded a major chunk of Premier League football rights for telecasting. Utility, SSE gained 2.1%, on favourable reviews from Barclays and Exane BNP Paribas. However, gains in the FTSE 100 were kept in check as Xstrata and Glencore International registered losses, on fears that shareholders would block their merger. Cairn Energy fell 1.1%, as it agreed to acquire North Sea oil producer Nautical Petroleum.

FTSE 100 edged up 0.2% to settle at 5,483.8, while FTSE 250 edged down 0.2% to close at 10,538.6.

European Market Snapshot

Other European markets closed in the negative territory yesterday, amid a rise in Italian and German bond yields at debt auctions and after US retail sales fell for a second consecutive month in May. Industrial sector stock, SKF, slumped 7.3%, after the company revealed “slightly lower” second quarter demand for its products and services on an annual basis, while Konecranes, Schneider Electric and Alstom, sank between 5.0% and 7.0%. Carmakers, Daimler, Volkswagen and Renault lost between 1.8% and 4.2%, after Renault’s CEO, Carlos Ghosn, issued cautious comments on European auto industry. Tyre makers, Pirelli, Michelin & Cie and Continental, fell between 2.1% and 3.5%, after Morgan Stanley highlighted that tyre volumes were “not picking up and mass pricing is on its way down”. Siemens declined 1.9%, after UBS removed the stock from its “European Key Call List”.

FTSEurofirst 300 index eased 0.3% to 987.0. German DAX Xetra 30 dropped 0.1% to 6,152.5. French CAC-40 closed 0.6% lower at 3,030.0.

Commodities

In Asia, crude oil for July delivery is trading 0.3% or 27 cents higher at $82.89 per barrel. Yesterday, crude oil for July delivery fell 0.8% or 70 cents to settle at $82.62 per barrel, an eight month low, amid sluggish fuel energy demand prospects, following a decline in the US retail sales and producer prices data for May. However, losses were limited, after the US Energy Information Administration reported that crude oil inventories fell by 200,000 barrels for the week ended 8 June. Meanwhile, the International Energy Agency slashed its estimate by 100,000 barrels from its May prediction to 89.9 million barrels per day for 2012 crude oil consumption, reflecting an increase of 820,000 barrels from last year.

Gold for immediate delivery is trading marginally lower today, at $1617.16 per ounce. Gold for August delivery rose 0.4% or $5.60 to settle at $1,619.40 per ounce yesterday, as the dollar depreciated against the euro, after investors speculated further quantitative easing by the US Federal reserve following weak retail sales data, increasing demand for the yellow metal as a hedge against inflation.

Currencies

At 0400 BST today, the GBP is trading marginally down against the USD at $1.5519, 0.1% higher against the EUR at €1.2354, and slightly up against the JPY at ¥123.25.

The EUR is trading 0.1% lower both against the USD and JPY at $1.2562 and ¥99.76 respectively, ahead of today’s Italian debt auction and Greek elections on 17 June.

The USD traded initially lower against the JPY, as investors speculated that the US Federal Reserve would expand its monetary policy if an upcoming report shows that the US consumer prices fell in May.

The NZD is trading higher against most of its major peers, after the Reserve Bank of New Zealand left the benchmark interest rate unchanged at 2.5%.

Yesterday, the EUR closed higher against the USD, amid mounting speculation that Greece might seek to modify its austerity program following the 17 June election in an effort to remain in the monetary bloc.

The AUD finished lower against the USD, as a drop in the US retail sales and rising concerns due to looming Greek elections, dampened demand for high yielding assets.

The CAD ended lower against the USD, following the Commerce Department report that showed a 0.2% decrease in the retail sales in May for US, Canada’s largest trading partner.

June 13, 2012 Financial Market Summary

DJIA surged 1.3% to settle at 12,573.8. NASDAQ soared 1.2% to close at 2,843.1. S&P 500 advanced 1.2% to finish at 1,324.2.

Nikkei 225 index is trading 0.3% higher, at 8,565.2.

FTSE 100 gained 0.8% to settle at 5,473.7. FTSEurofirst 300 index added 0.7% to 990.2.

In Asia, crude oil for July delivery is trading 0.4% or 34 cents lower at $82.99 per barrel.

At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5548, marginally higher against the EUR at €1.2456, and flat against the JPY at ¥123.80.

US Market Snapshot

US markets rallied yesterday, on hopes that the Federal Reserve would launch additional monetary easing and as the ECB backed bank deposits guarantee, curbing fears of a bank run. Boeing rallied 3.5%, after Sanford C. Bernstein raised its rating to “Outperform” from “Market perform”, while Textron climbed 4.0%, as it bagged an order of 150 jets from NetJets. First Solar surged 21.3%, on news that the company is boosting output to meet surprisingly high levels of demand in Germany. Batteries developer, A123 Systems soared 51.9%, on achieving a breakthrough in advanced battery technology. Morgan Stanley jumped 4.2%, as it focused on cost reduction of $1.4 billion annually.

DJIA surged 1.3% to 12,573.8. NASDAQ soared 1.2% to 2,843.1. S&P 500 advanced 1.2% to 1,324.2.

Asian Market Snapshot

Asian markets are trading higher this morning, taking cues from overnight gains on Wall Street. However, gains were subdued on worries that Europe would struggle to stem its debt crisis, after Fitch Ratings highlighted significant risk of capital outflows from the region and ahead of Italy’s debt auctions and Greece’s election. In Japan, Mitsui High-Tec gained value, after the company reported more than 700.0% rise in its operating profit on an annual basis. Machinery stocks, Fanuc and Denso traded higher, as core machinery orders rose 5.7% in April. In Hong Kong, Hang Seng Bank and HSBC Holdings traded higher, tracking gains in major US banks. In South Korea, Kumho Industrial traded higher, after the company announced that it would sell $808.6 million worth of assets to a private equity firm.

Nikkei 225 index is trading 0.3% higher, at 8,565.2. Hang Seng index is 0.3% up, at 18,922.4, while the Kospi index is trading 0.1% higher, at 1,855.9.

UK Market Snapshot

UK markets closed on a mixed note yesterday, as Federal Reserve Bank of Chicago President, Charles Evans, backed the idea of more stimulus, offsetting Fitch Ratings’ decision to downgrade 18 Spanish banks. Gold miner, Randgold Resources, the top gainer on the FTSE 100 index, rallied 3.0%, as gold prices climbed. Vodafone gained 2.1%, as BofA Merrill Lynch reiterated its “Buy” rating on the stock. ICAP added 2.7%, following a “Buy” note from Faraday Research. Miners, Rio Tinto, BHP Billiton and Fresnillo logged gains between 1.0% and 2.4%, tracking a rise in base metal prices. Royal Dutch Shell-B and Tullow Oil gained 1.1% and 1.6%, respectively, as oil prices moved higher. Royal Dutch Shell-B also advanced, amid speculation that it would be interested in bidding for France’s Maurel & Prom. Rolls-Royce gained 1.8%, after a broker raised its price target.

FTSE 100 gained 0.8% to settle at 5,473.7, while FTSE 250 shed 0.9% to close at 10,561.2.

European Market Snapshot

Other European markets finished in the positive territory yesterday, amid optimism that the US Federal Reserve would inject more stimulus to bolster the country’s economic growth. Applications software stock, TomTom, soared 16.2%, after Apple announced that it would use its digital maps in the next version of its mobile software. Cement maker, Lafarge, rose 2.1%, after the company stated that new products and spending reductions would help it to increase its earnings by €1.75 billion. Banking stock, Julius Baer Group, rose 2.7%, after UBS upgraded the stock to “Buy” from “Neutral”, while Utility stock, EON, added 1.1%, after the same broker raised its recommendation on the stock to “Buy” from “Neutral”. However, gains were restricted by losses in financial sector stocks, following a downgrade of 18 Spanish banks by Fitch Ratings and after Spanish borrowing costs reached a record.

FTSEurofirst 300 index added 0.7% to 990.2. German DAX Xetra 30 rose 0.3% to 6,161.2. French CAC-40 closed 0.1% higher, at 3,046.9.

Commodities

In Asia, crude oil for July delivery is trading 0.4% or 34 cents lower at $82.99 per barrel. Yesterday, crude oil for July delivery added 0.8% or 62 cents to settle at $83.32 per barrel, as demand concerns eased, after the US Federal Reserve of Chicago President, Charles Evans, stated that he was in favour of further stimulus measures for better generation of jobs. Crude oil also gained value, on hopes that OPEC would keep its production levels unchanged and as the dollar depreciated against the other currencies which increased the demand of oil as an alternative investment.

Gold for immediate delivery is trading marginally lower today, at $1608.68 per ounce. Gold for August delivery rose 1.1% or $17 to settle at $1,613.80 per ounce yesterday, as the dollar weakened against the euro, amid speculation that the US Federal reserve would expand its monetary policy, increasing 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 $1.5548, marginally higher against the EUR at €1.2456, and flat against the JPY at ¥123.80.

The EUR is trading 0.2% lower against the USD at $1.2482 and marginally down against the JPY at ¥99.38, ahead of an Italian debt auction and Greece’s General election on 17 June, and amid speculation that a data due to be released today might show that the Eurozone industrial production dropped the most in seven months.

The USD is trading higher against most of its major peers, on higher demand for safe haven assets, as Spanish borrowing costs soared to a 15-year high, and after Fitch Ratings stated that the country’s Prime Minister Mariano, Rajoy, would miss budget-deficit targets.

The AUD is trading lower against the USD, following a report that showed the Australian consumer confidence stagnated near the lowest level in 2012. The currency also lost value, as investors speculated monetary easing, after Reserve Bank of Australia Governor, Glenn Stevens, stated that the country’s real exchange rate is “pretty high”.

Yesterday, the EUR fell initially against the USD, as a sharp rise in Spanish and Italian bond yields raised speculation that the debt crisis would spread to other Eurozone economies, dampening demand for riskier assets. The JPY closed lower against most of its major peers, ahead of a two-day policy meeting of Bank of Japan on 14 June, after the IMF stated that Japan’s currency was overvalued and the country’s central bank should consider adding to monetary stimulus. The GBP closed higher against the EUR, after Fitch Ratings stated that “AAA” nations in the Eurozone are at risk of downgrades.

June 12, 2012 Financial Market Summary

DJIA slumped 1.1% to settle at 12,411.2. NASDAQ tumbled 1.7% to close at 2,809.7. S&P 500 shed 1.3% to finish at 1,308.9.

Nikkei 225 index is trading 1.3% lower at 8,514.8.

FTSE 100 edged down marginally to settle at 5,432.4. FTSEurofirst 300 index added 0.1% to 983.1.

In Asia, crude oil for July delivery is trading 1.1% or $0.89 lower at $81.81 per barrel.

At 0400 BST today, the GBP is trading flat against the USD at $1.5483, 0.1% lower against the EUR at €1.2402, 0.1% higher against the JPY at ¥122.86.

US Market Snapshot

US markets closed sharply lower yesterday, as enthusiasm over the $125 billion bailout for Spanish banks faded out and investors cautiously looked ahead to the Greek elections next Sunday.  Peabody Energy, Alpha Natural Resources and Patriot Coal declined between 4.7% and 13.2%, as the coal industry continues to grapple with intense competition from cheaper natural gas. AK Steel Holding plunged 14.0%, as Goldman Sachs downgraded its rating on the stock to “Sell” from “Neutral”. Apple retreated 1.6%, after its annual Worldwide Developers Conference failed to impress investors. Centene plunged 22.2%, after it slashed its 2012 earnings outlook. Diamond Foods tumbled 8.0%, after it stated that it would fail to meet a Monday deadline to file its quarterly reports and expects a delisting notice from NASDAQ.

DJIA slumped 1.1% to settle at 12,411.2. NASDAQ tumbled 1.7% to close at 2,809.7. S&P 500 shed 1.3% to finish at 1,308.9.

Asian Market Snapshot

Asian markets are trading lower this morning, tracking overnight losses on Wall Street, as the Spanish bank aid package failed to ease concerns about the eurozone contagion. In Japan, JFE Holdings lost value, after its Chinese peer Baoshan Iron & Steel cut steel prices following a slump in demand. Nomura Holdings lost value, after Japan’s Financial Services Minister, stated that the company might face regulatory action after employees leaked insider information. In Hong Kong, retailer, Li Ning paced lower, after the company announced that it might report substantial decline in its first-half and full-year earnings for fiscal 2012. In South Korea, shipbuilders, Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries traded lower, reversing their earlier session gains.

Nikkei 225 index is trading 1.3% lower at 8,514.8. Hang Seng index is trading 0.9% lower at 18,779.8, while the Kospi index is trading 1.0% lower, at 1,849.2.

UK Market Snapshot

UK markets closed lower yesterday, paring earlier gains, amid uncertainty over the long term efficacy of the Spanish bank rescue deal and continued concerns about the eurozone debt crisis. ENRC dropped 4.0%, after RBC capital downgraded the stock to “Underperform” from “Sector Perform”, citing price realisation pressures and cost headwinds, while Antofagasta fell 0.6%, after the same broker downgraded the stock. Kazakhmys and Fresnillo fell 1.8% and 3.2%, respectively, while Royal Bank of Scotland dropped 0.7%, as the uncertain outlook in the eurozone dampened investor sentiment.  Aquarius Platinum slumped 10.9%, after it suspended operations in South Africa’s Marikana mine, owing to sluggish price outlook. Oil and gas contractor, Lamprell dropped 6.8%, after Investec trimmed its target price, following Thursday’s profit warning.

FTSE 100 edged down marginally to settle at 5,432.4, while FTSE 250 slid 0.4% to close at 10,658.2.

European Market Snapshot

Other European markets closed mostly positive yesterday, trimming most of its earlier gains, as optimism over the Spanish aid fizzled out, as investors awaited more details on the rescue deal and on renewed uncertainty over the Greek elections this weekend. Carmaker, Volkswagen and Porsche gained 1.3% and 2.4%, respectively, after the former stated that it had cleared a tax hurdle to buy 50.1% of the latter’s sports-car business. Volkswagen also advanced, after data showed that sale of its Audi brand reached new monthly record highs in May. However, Banco Santander eased 0.3%, after Fitch Ratings downgraded its Long-term Issuer Default Ratings (IDR), while UniCredit, Intesa Sanpaolo and Mediobanca dropped between 5.6% and 8.8%, following a rise in Italian bond yields.

FTSEurofirst 300 index added 0.1% to 983.1. German DAX Xetra 30 rose 0.2% to 6,141.1. French CAC-40 closed 0.3% lower at 3,042.8.

Commodities

In Asia, crude oil for July delivery is trading 1.1% or $0.89 lower at $81.81 per barrel. Yesterday, crude oil futures for July delivery slid 1.7% or $1.40 to settle at $82.70 per barrel, amid fuel energy demand concern, on speculation that Spain’s bailout plan would fail to contain the European sovereign debt crisis and on renewed concerns about Greece. Crude oil prices also dropped following a rise in the dollar against the euro and after the Saudi Arabian Oil Minister, Ali al-Naimi, called for an increase in OPEC’s output target.

Gold for immediate delivery is trading 0.1% higher today, at $1,592.81 per ounce. Gold for August delivery rose 0.3% or $5.40 to settle at $1,596.80 per ounce yesterday. Gold futures had gained initially in line with the euro as investors welcomed the Spanish bank bailout program. However, gains were trimmed on profit booking as the metal price rose back above $1,600.00 per ounce and as the euro eased amid lingering concerns about Greece and other eurozone economies. 

Currencies

At 0400 BST today, the GBP is trading flat against the USD at $1.5483, 0.1% lower against the EUR at €1.2402, 0.1% higher against the JPY at ¥122.86. A report showed that UK RICS index of house prices remained negative in May as concerns about domestic economic instability and global uncertainty continued to weigh on consumer sentiment

The EUR is trading 0.1% higher against the USD at $1.2484. Earlier, the EUR was trading lower before Italy sells bonds this week and the upcoming elections in Greece. The EUR is trading 0.1% higher against the JPY at ¥99.06.Earlier, the EUR was trading lower as demand for safe haven increased amid concerns after borrowing costs in Italy and Spain surged yesterday.

The USD is trading flat against the JPY, amid speculation that reports due tomorrow would show a decline in US retail sales for the month of May.

The AUD is trading higher against the JPY. Earlier, the currency traded lower, after National Australia Bank (NAB) report showed that Australian business confidence slid to a nine month low in May.

The NZD is trading lower against the JPY. However, losses in the currency were restricted after a report showed that home prices in New Zealand climbed in May.

Yesterday, the USD closed higher against the EUR, as demand for safe haven increased on renewed concerns about Greece and as optimism about Spain’s bank bailout faded due to uncertainty. The CAD and AUD finished lower against the USD, amid mounting concern that Italy might be the next European country to require a bailout, dampening demand for high yielding assets.