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Showing posts with label 09 April. Show all posts
Showing posts with label 09 April. Show all posts

ADVFN II World Daily Markets Bulletin, 09 April, 2013.


ADVFN III World Daily Markets Bulletin
Daily world financial news Tuesday, 09 April 2013

US Market
Stocks Nearly Flat After Initial Upward Move
After moving higher at the open, stocks have given back some ground over the course of early trading on Tuesday. The major averages have pulled back well off their highs for the young session.
Currently, the major averages are nearly flat, showing moves of less than a tenth of a percent each. While the Dow is up 0.12 points at 14,613.60, the Nasdaq is down 0.63 points at 3,221.62 and the S&P 500 is down 0.69 points at 1,562.38.
The initial strength on Wall Street was partly due to a positive reaction to Alcoa's quarterly results, as the aluminum giant released its results after the close of trading on Monday.
Alcoa reported first quarter adjusted earnings that rose to $0.11 per share from $0.10 per share in the year-ago quarter, coming in above analyst estimates for $0.08 per share.
At the same time, the company said sales for the quarter fell to $5.83 billion from $6.01 billion in the same quarter last year. With the drop, sales came in slightly below expectations for $5.89 billion.
The release of results from Alcoa is seen as the unofficial start of earnings season, as the aluminum giant is typically the first Dow component to release its quarterly results.
While the company's unexpected earnings growth eased some of the concerns about the impending earnings season, buying interest waned not long after the open.
Despite the subsequent pullback by the broader , significant strength remains visible among gold stocks. The NYSE Arca gold Bugs Index is up by 1.9 percent, with the strength in the sector coming amid an increase by the price of gold.
Steel stocks are also holding on to strong gains in early trading, while most of the other major sectors are showing only modest moves.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. While Japan's Nikkei 225 Index closed nearly flat, China's Shanghai Composite index and Hong Kong's Hang Seng Index rose by 0.6 percent and 0.7 percent, respectively.
Meanwhile, the major European markets have turned mixed on the day. The German DAX Index has edged down by 0.1 percent, while the U.K.'s FTSE 100 Index is up by 0.4 percent and the French CAC 40 Index is up by 0.2 percent.
In the bond market, treasuries are showing a lack of direction after giving back some ground in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 1.726 percent.




Canadian Market
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TSX Up On China Data, Earnings - Canadian Commentary
Canadian stocks were extending gains for a second session Tuesday morning amid hopes of strong earnings reports from major corporates after Alcoa reported better than expected earnings. Also, soft inflation data out of China raised hopes that the nation's central bank would resort for easy monetary policy, reducing interest rates.
Chinese inflation eased sharply in March after climbing to a ten-month high in February, as seasonal increases in food prices receded, the latest figures from the National Bureau of Statistics showed today. The consumer price index rose 2.1 percent year-on-year in March, slower than the 3.2 percent rise in February. Economists expected the rate of inflation to ease to only 2.5 percent.
The S&P/TSX Composite Index gained 99.96 points or 0.81 percent to 12,444.52, a day after snapping its 5-session losing streak.
The Diversified Materials Index jumped over 3 percent, with First Quantum Minerals adding 4 percent. Inmet Mining and Teck Resources gathered around 3 percent each.
The price of gold was moving higher Tuesday morning, with the US dollar trading flat amid lack of fresh macroeconomic cues. gold for June moved up $14.70 to $1,587.20 an ounce.
Among gold plays, Seabridge gold rose 6 percent. Goldcorp. and Barrick gold were up around 3 percent each, while Yamana gold was adding 5 percent.
Agnico-Eagle Mines added over 3 percent after announcing that it would subscribe for about 26.97 million units of Sulliden gold Corporation Ltd.(SUE.TO) in a non-brokered private placement at a price of C$0.89 per unit for total consideration of C$24.00 million.
Gold ore mining company OceanaGold Corp. (OGC.TO) moved up about 5 percent after announcing the first shipment of the Didipio concentrate from the San Fernando port in the Philippines.
The price of Crude oil was little changed Tuesday morning amid speculation that China will reduce its key interest rates following tame inflation numbers. Crude for May eased $0.17 to $93.19 a barrel.
In the oil patch, Pacific Rubiales Energy gained over 6 percent after providing operational updates. The company now expects to report record production volumes in the first quarter 2013, with production at the top of its annual guidance range.
Internet software and services provider, PNI Digital Media (PN.TO) gained over 3 percent after announcing that it would acquire all of the outstanding shares of privately-held QS Quarterhouse Software, Inc., an Austin, Texas based company that is a developer of web-based print on demand software for commercial printers and distributors.
On the other hand, diversified communications & media company Shaw Communications Inc. eased 0.20 percent after it said it would buy Enmax Envision Inc. from Enmax Corp. for about C$225 million.
Uranium One Inc. slipped 0.40 percent after announcing appointment of Grier Colter as its Executive Vice President and Chief Financial Officer. Colter succeeds Graham du Preez who will be leaving the Company to pursue other opportunities.
In economic news Statistics Canada said municipalities issued building permits worth $6.0 billion in February, a 1.7 percent increase from January. Economists expected a recovery of 4.3 percent. Higher construction intentions in the non-residential sector in eight provinces, led by Alberta, more than offset a decline in the residential sector. Nonetheless, the total value of building permits has been trending downwards since late 2012.
Separately, Canada Mortgage and Housing Corp said that estimated housing starts in March came in at a seasonally adjusted annual rate of 184,028, just over the 183,207 figure in February.
From the euro zone, Germany's merchandise exports contracted in February, and at a faster rate than expected by economists, after recording strong growth in the previous month latest data showed. Exports of goods declined a calendar and seasonally adjusted 1.5 percent month-on-month to EUR 90.4 billion in February, after rising 1.3 percent in January, the Federal Statistical Office said. Economists had forecast a more modest decline of 0.3 percent for February. Year-on-year, unadjusted shipments fell by 2.8 percent in February, following January's 3 percent increase.
Meanwhile, data from the Office for National Statistics revealed that U.K. industrial production recovered at a faster than expected pace in February. Industrial output grew 1 percent in February from a month ago, when it was down 1.3 percent. The rate of growth exceeded a 0.4 percent rise forecast by economists.




European Market
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European Markets Finished With Mixed Results
The European ended Tuesday's trading session with mixed results. The markets began the session in positive territory, but began to lose ground in the afternoon, as the U.S. markets struggled. The unofficial beginning of the U.S. earnings reporting season began late Monday, after aluminum producer Alcoa reported a better than expected profit. However, Alcoa's revenues were disappointing. Mining stocks were among the best performing stocks, after Chinese inflation eased more than expected. Banks and telecoms were also among the gainers.
The French is expected to grow 0.1 percent in the first quarter, the Bank of France said Tuesday. The estimate is unchanged from the previous forecast.
Italy's bank lending to private sector decreased for the seventh consecutive month in February despite low interest rates, the Bank of Italy showed Tuesday. Private sector lending was down 1.3 percent month-on-month in February, after easing 1.6 percent in the prior month.
Driven by excessive risk taking and weak corporate governance of state-owned banks, Slovenia faces a "severe" banking crisis, the Organization for Economic Cooperation and Development said Tuesday. The Paris-based OECD called for the main results of new stress tests and urged the government to recapitalize distressed banks.
The corporate sector has a severe debt overhang, which requires an improvement of insolvency procedures, but greater foreign direct investment would also help smooth corporate deleveraging, it observed.
Further, the group of the world's wealthiest countries said Slovenia requires structural reforms to boost potential growth. But the political economy of reform remains difficult, notably because it has been easy to use a referendum to veto a law.
Chinese inflation eased sharply in March after climbing to a ten-month high in February, as seasonal increases in food prices receded, the latest figures from the National Bureau of Statistics showed Tuesday. The consumer price index rose 2.1 percent year-on-year in March, slower than the 3.2 percent rise in February. Economists expected the rate of inflation to ease to 2.5 percent.
The euro Stoxx 50 index of eurozone bluechip stocks increased by 0.07 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, finished unchanged.
The DAX of Germany dropped by 0.33 percent and the SMI of Switzerland fell by 0.49 percent. The CAC 40 of France climbed by 0.11 percent and the FTSE 100 of the U.K. rose by 0.58 percent.
In Frankfurt, Deutsche Lufthansa dipped 0.14 percent. The airline climbed due to bargain hunting, following Sharp losses recently on worries over a bird flu outbreak in China.
Deutsche Bank advanced by 3.01 percent and Commerzbank added 1.95 percent.
In Paris, Air France-KLM climbed by 1.11 percent. The airline reported a rise in passenger traffic for March, while capacity remained stable. Load factor improved 1.7 points from last year.
EADS declined by 2.91 percent, after Lagardere sold its stake in the company. Lagardere also fell by 2.56 percent.
Credit Agricole rose by 1.41 percent and BNP Paribas gained 0.74 percent. In London, Vedanta Resources increased by 5.38 percent. Its subsidiary, Cairn India, made its latest oil discovery in Rajasthan block in the northwest India.
Mining stocks turned in a strong performance Tuesday, following the release of the Chinese inflation data. Anglo American climbed by 3.37 percent and BHP Billiton added 3.51 percent. Eurasian Natural Resources gained 5.14 percent and Rio Tinto rose by 4.80 percent. Kazakhmys advanced by 5.61 percent and Antofagasta increased by 3.79 percent.
Barclays increased by 3.17 percent and HSBC added 0.62 percent. Royal Bank of Scotland advanced by 2.93 percent and Lloyds Banking Group rose by 1.89 percent.
AZ Electronic Materials plunged by 34.96 percent. The specialty chemical materials producer reported a decline in first-quarter revenues and EBITDA margin, and warned on first half and fiscal 2013 EBITDA margin.
Germany's merchandise exports contracted in February, and at a faster rate than expected by economists, after recording strong growth in the previous month, latest data showed Tuesday.
Exports of goods declined a calendar and seasonally adjusted 1.5 percent month-on-month to EUR90.4 billion in February, after rising 1.3 percent in January, the Federal Statistical Office said. Economists had forecast a more modest decline of 0.3 percent for February.
The value of imports fell at a significantly faster rate of 3.8 percent than the 0.1 percent decline economists had forecast. Compared to February 2012, external purchases recorded a 5.9 percent decline, reversing January's 2.9 percent growth.
The net trade for the month, on an unadjusted basis, resulted in a surplus of EUR16.8 billion in February, higher than the EUR14.9 billion surplus recorded a year earlier.
France's merchandise trade shortfall increased in February, contrary to economists' forecast for a decline, latest data showed Tuesday. The trade deficit increased to EUR6.011 billion in February from EUR5.653 billion in January, the Commerce Ministry said. Economists had forecast the shortfall to improve to EUR5.445 billion. In February 2012, the balance was a deficit of EUR6.506 billion.
U.K. industrial production recovered at a faster-than-expected pace in February, reducing prospects of a triple-dip recession in the first quarter, but the modest improvement in the sluggish economy was countered by a widening trade deficit during the same month.
Industrial output grew 1 percent in February from a month ago, when it was down 1.3 percent, the Office for National Statistics said Tuesday. The rate of growth exceeded a 0.4 percent rise forecast by economists.
The UK's visible trade deficit increased more than expected in February, the latest figures from the Office for National Statistics showed Tuesday. Trade in goods resulted in a shortfall of GBP 9.4 billion in February, higher than GBP 8.2 billion January. This was expected to increase marginally to GBP 8.6 billion.
Retail sales in the United Kingdom rose in March, the British Retail Consortium reported Tuesday. BRC said overall retail sales were up 3.7 percent from one year ago. Same-store sales increased 1.9 percent from March of 2012.
House sales in the United Kingdom improved in March, the Royal Institute of Chartered Surveyors reported Tuesday. The RICS survey showed residential house price balance rose to minus-1 from the February reading of minus-7.
Wholesale inventories in the U.S. unexpectedly decreased in the month of February, according to a report released by the Commerce Department on Tuesday, although the report also showed a notable rebound by wholesale sales.
The report showed that wholesale inventories dipped by 0.3 percent in February following a downwardly revised 0.8 percent increase in January. The drop came as a surprise to economists, who had expected inventories to rise by 0.5 percent compared to the 1.2 percent jump originally reported for the previous month.




Asia Market
Asian Markets Trade Higher
Asian are mostly trading higher on Tuesday, tracking a positive lead from the U.S. and European markets where the major averages surged higher overnight. A firm trend in commodity prices is also aiding sentiment to an extent.
In the Australian market, mining, energy, financial, industrial, property trusts and consumer staples stocks are mostly trading higher.
The benchmark S&P/ASX 200 index is up 65.2 points or 1.2 percent at 4,970.7. The broader All Ordinaries index is trading at 4,973, up 60.3 points or 1.2 percent from its previous close.
Among top miners, BHP Billiton is up 1.8 percent, Rio Tinto is adding 2.7 percent, Newcrest Mining is up 1.5 percent and Fortescue Metals is trading higher by 4.8 percent.
Among energy stocks, Woodside Petroleum, Santos and Oil Search are up 1 to 1.8 percent, while Origin Energy and Caltex Australia are up with modest gains.
In the banking space, ANZ Bank is up 1.7 percent, Commonwealth Bank of Australia is up with a gain of 1.2 percent, National Australia Bank is adding 2.3 percent and Westpac is up 2.1 percent. Bendigo & Adelaide Bank and Bank of Queensland are up 1.5 percent and 1.3 percent, respectively.
Arrium is up more than 8 percent. Atlas Iron, Downer EDI and Alumina are trading higher by nearly 7 percent.
Panaust, Bluescope Steel, Boral, Oz Minerals, Regis Resources, Echo Entertainment Group, Sims Metal Management and Challenger are all up 3 to 5 percent.
Aurora Oil & Gas, WorleyParsons, Macquarie Group and Lynas Corp. are also trading sharply higher. Sundance Resources shares are down 50 percent after the collapse of its A$1.3 billion takeover deal with China's Hanlong Mining. Sundance revealed late on Monday that it had ended talks with Hanlong after the Chinese company ran into problems financing the deal.
In the currency market, the Australian dollar opened higher against the U.S. dollar. In early trades, the Aussie was quoting at US$1.0412, up 0.3 percent from Monday's close of US$1.0379.
The Japanese market opened sharply higher with the yen's decline against the U.S. dollar triggering some hectic buying in early trades. A positive lead from Wall Street also aided sentiment.
After the early Sharp upmove, stocks retreated as the yen regained some lost ground against the greenback, but recovered well after the local currency staged a recovery.
The benchmark Nikkei 225 index, which rose to 13,331.4 in early trades, hitting its highest level since August 2008, declined to around 13,178 subsequently, but rebounded smartly to 13,260 by the end of the morning session, gaining 67.5 points or 0.5 percent.
Steel, non-ferrous metals, precision instruments, mining and ship building stocks opened on a high note but gave up some gains subsequently. Real estate, financial and railway stocks were mixed.
Okuma Corp. shares rose more than 11 percent. Mitsubishi Materials, Toto and Sumitomo Heavy Industries gained 6 to 8 percent.
Amada Co., Sumitomo Metal Mining, Obayashi Corp., Sharp Corp., Mitsubishi Heavy Industries, T&D Holdings, Mitsui & Co., Mitsubishi Corp., Mitsumi Electric, Suzuki Motor and Daiwa Securities Group all rose 3 to 5 percent.
Sony Financial Holdings, Taiheiyo Cement, Nissan Chemical Industries, Inpex Corp., Panasonic Corp. , Olympus Corp., Hitachi Construction Machinery, Hino Motors, JFE Holdings and Nissan Motor were among the other impressive gainers.
Meanwhile, Credit Saison, Tokyu Land, Tokyo Dome, Tokyo Tatemono, Mitsui Fudosan, Sumitomo Mitsui Trust Holdings and Bank of Yokohama traded weak, losing 2 to 4 percent.
In the currency market, the U.S. dollar traded in the lower 99 yen range in early deals in Tokyo. The yen is currently trading at 99.43 to the U.S. dollar, after declining to 99.09.
Among other markets in the Asia-Pacific region, Shanghai, Hong Kong and Singapore are trading notably higher. Indonesia, Malaysia and New Zealand are up with modest gains, while South Korea and Taiwan are trading weak.
On Wall Street, stocks rebounded after early weakness and ended higher on Monday. While concerns about the economic outlook following recent jobs report hurt sentiment early on, bargain hunting lifted stocks to higher levels towards the end of the session.
The Dow rose 48.2 points or 0.3 percent to 14,613.5, the Nasdaq advanced 18.4 points or 0.6 percent to 3,222.3 and the S&P 500 climbed 9.8 points or 0.6 percent to 1,563.1.
Major European markets too ended higher on Monday. While the U.K.'s FTSE 100 index moved up 0.4 percent, the French CAC 40 Index and the German DAX index both edged up by 0.1 percent.
U.S. Crude oil ended higher on Monday, tracking global equity markets and on bargain hunting, even as supply concerns resurfaced with developments in Nigeria. Crude for May delivery ended up $0.66 or 0.7 percent at $93.36 a barrel on the New York Mercantile Exchange.




Commodities
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Crude Ticks Up Near $94
The price of Crude oil continued to recover from its last week's losses Tuesday morning amid speculation that China will reduce its key interest rates following tame inflation numbers.
Chinese inflation eased sharply in March after climbing to a ten-month high in February, as seasonal increases in food prices receded, the latest figures from the National Bureau of Statistics showed today. The consumer price index rose 2.1 percent year-on-year in March, slower than the 3.2 percent rise in February. Economists expected the rate of inflation to ease to only 2.5 percent.
Light Sweet Crude oil futures for May delivery, edged up $0.22 to $93.58 a barrel. Yesterday, oil settled marginally higher tracking global equity and on bargain hunting, even as supply concerns resurfaced with developments in Nigeria. Nevertheless, the uptrend in oil prices were somewhat limited by a dollar that strengthened against a basket of some major currencies.
This morning, the U.S. dollar was extending its one-month low versus the euro and the Swiss franc, while trading flat against sterling. The buck was steady near its 4-year high versus the yen after the Bank of Japan began a new round of aggressive monetary easing measures aimed at beating deflation.
In economic news, Germany's merchandise exports contracted in February, and at a faster rate than expected by economists, after recording strong growth in the previous month latest data showed. Exports of goods declined a calendar and seasonally adjusted 1.5 percent month-on-month to EUR90.4 billion in February, after rising 1.3 percent in January, the Federal Statistical Office said. Economists had forecast a more modest decline of 0.3 percent for February. Year-on-year, unadjusted shipments fell by 2.8 percent in February, following January's 3 percent increase.
Meanwhile, data from the Office for National Statistics revealed that U.K. industrial production recovered at a faster than expected pace in February. Industrial output grew 1 percent in February from a month ago, when it was down 1.3 percent. The rate of growth exceeded a 0.4 percent rise forecast by economists.
Traders will look to the wholesale inventories report from the U.S. Commerce Department, due out at 10 am ET. Economists expect wholesale inventories to rise by 0.5 percent month-over-month in February compared to a 1.2 percent increase in January.
Today after the market hours, the API will release its US Crude oil inventories report for the weekended April 05.

Decline In German Exports Exceeds Forecast On Weak Eurozone Demand: Forex Top story by RTTNews, 09 April, 2013.


Forex Top Story


GermanExports-040913.jpg German exports contracted at a faster-than-expected pace in February as deep recession in the euro area weighed on demand for goods from the largest economy in the bloc. Exports of goods declined a calendar-and-seasonally adjusted 1.5 percent month-on-month to EUR 90.4 billion in February, after rising 1.3 percent in January, the Federal Statistical Office said Tuesday.
ADB-040913.jpg The Asian Development Bank said Tuesday that growth in Developing Asia will likely rebound this year, driven by growing private consumption and intra-regional trade, but warned the recovery faces considerable risks from economic developments in the US and Europe. ADB expects the region to grow by 6.6 percent in 2013.
EEP-040913.jpg Germany's foreign trade and U.K. industrial production are the major reports due on Tuesday, headlining a busy day for the European economic news.
ChinaConsumerPrice-040913.jpg Chinese inflation eased sharply in March after climbing to a ten-month high in February, as seasonal increases in food prices receded, the latest figures from the National Bureau of Statistics showed Tuesday. The consumer price index rose 2.1 percent year-on-year in March, slower than the 3.2 percent rise in February. Economists expected the rate of inflation to ease to 2.5 percent.
boj-030713.jpg The members of the Bank of Japan's monetary policy board believe that the economy in Japan has stopped worsening - although some uncertainty remains, minutes from the board's policy meeting on March 6 and 7 revealed on Tuesday. The Japanese economy is expected to see a moderate recovery path, the...
EURUSD2-040813.jpg The dollar is currently posting slight gains against all of its major competitors at the start of the new trading week. Equity markets are rebounding on Monday, following Friday's weaker than expected jobs report. Portuguese Prime Minister Pedro Passos Coelho said on Sunday that the government will...
flag-080413.jpg Russia has decided to restructure a EUR 2.5 billion loan it granted to Cyprus in 2011 at the request of the European Commission, Russian President Vladimir Putin said on Monday. "At the request of the European Commission, we have decided to restructure this debt," Putin told reporters after holding talks with German Chancellor Angela Merkel in Hannover.
GermanFactory-040813.jpg Germany's industrial production rose more-than-expected in February, helped by an increase in manufacturing output, underpinning hopes that the biggest euro area economy is on the recovery path after shrinking in the final months of 2012, latest data showed on Monday.
Portugal-040813.jpg Portuguese Prime Minister Pedro Passos Coelho said on Sunday that the government will have to reduce spending on social security, health and education to meet its bailout conditions after the constitutional court ruled against some of the austerity measures announced in the budget. New spending reduction plans are crucial for the country to retain the access to its EUR 78 billion EU-IMF aid.
EEP-040813.jpg Industrial production from Germany is the major data due on Monday, headlining a light day for the European economic news.
japantrade-042110.jpg Japan posted a current account surplus of 637.4 billion yen in February, the Ministry of Finance said on Monday - bouncing into the green after three straight months of deficit. The headline figure topped forecasts for a surplus of 435.4 billion yen following the 364.8 billion yen deficit in January. The 47 percent annual decline in the current account also beat expectations for a 59.1 percent contraction following the 19.1 percent annual decline a month earlier.
GermanFactory-040513.jpg German factory orders grew much more than expected in February underpinned by both domestic and foreign demand, signaling that conditions may have improved in the first quarter. Factory orders grew 2.3 percent in February from the prior month, the Federal Ministry of Economics and Technology said Friday. The increase reversed January's revised 1.6 percent drop.
EurozoneRetailSales-040513.jpg Eurozone's retail sales decreased in February after recording a modest rise in the previous month with consumers turning more cautious in their spending as the crisis-stricken currency-bloc struggles hard to recover from the ongoing recession.
UKHousePrices-040513.jpg House prices in the UK increased for a second consecutive month in March and is likely to show a moderate upward trend all through the year, according to a report released by Halifax on Friday. The house price index rose 0.2 percent month-on-month in March, following a 0.5 percent increase in February and a 0.3 percent fall in January. This was weaker than expected 0.3 percent increase.
EEP-040513.jpg Factory orders from Germany and retail sales from Eurozone are due on Friday, headlining a light day for the European economic news.

ADVFN III Morning Euro Markets Bulletin, 09 April, 2013.


ADVFN III Morning Euro Markets Bulletin
Daily world financial news Tuesday, 09 April 2013

London Market Report
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London open: Mining stocks boosted by Alcoa, Chinese inflation
Market Movers
  • techMARK 2,360.64 +0.40%
  • FTSE 100 6,319.55 +0.68%
  • FTSE 250 13,565.08 +0.31%
The FTSE 100 opened strongly on Tuesday, taking its cue from a decent finish on Wall Street after bellwether Alcoa reported better-than-expected profits in the first quarter, kicking off earnings season with a bang.

Profits from the aluminium producer rose 59% year-on-year despite a slight drop in metals prices and a fall in revenue. Speaking to CNBC after the results, Chief Executive Klaus Kleinfield said: "I'm relatively optimistic that 2013 is going to be better than 2012."

Banking giants JPMorgan Chase & Co and Wells Fargo & Co will also releasing their earnings reports this week.

Meanwhile, news that Chinese inflation slowed more than forecast in March has increased hopes that the People's Bank of China will hold off from tightening policy for the time being.

Consumer-price inflation slowed to a 2.1% annual rate in March, down from 3.2% in February when prices soared on the back of the New Year holiday. Analysts had pencilled in a figure closer to 2.5%.

Central Bank Governor Zho Xiochuan has been wary of inflation figures after February's data pushed past forecasts, so March's data takes pressure off the Chinese monetary authority to tighten policy as the world's second-largest economy seeks to combat an economic slowdown.
Miners gain after Alcoa, Chinese inflation
Strong results from mining heavyweight Alcoa and slowing price rises in China were lift resource stocks early on. ENRC, Vedanta, Rio Tinto, EVRAZ and Anglo American were making strong gains this morning.

Chemicals group AZ Electronic Materials plummeted early on after a disappointing first-quarter trading update, in which it revealed that full-year revenues are expected to be flat on last year but the group EBITDA margin would remain below normal levels. Group revenues were down 2.0% in the first three months of the year.

Drinks giant Diageo fell despite both Jefferies and Nomura raising their targets for the stock. Nomura admitted in a sector review that valuations of beverages stocks are high with the category trading at a 50% premium to the market on 2013 earnings, though the free cash flow yields are strong.

Energy services firm Wood Group rose after saying that its PSN business has signed a "significant" two-year North Sea contract extension with Total E&P UK, with is expected to be valued at around $150m.

Oil group Tullow also rose after saying that it has agreed to sell its Bangladesh arm to KrisEnergy Asia Holdings BV, a subsidiary of KrisEnergy Asia, for $42.35m.





UK Event Calendar
Tuesday April 09

INTERIMS
Victrex

INTERIM DIVIDEND PAYMENT DATE
Alumasc Group, Carclo, Dechra Pharmaceuticals

GMS
Bezant Resources, DQ Entertainment

FINALS
Blur (Group), Camkids Group, Concurrent Technologies, Frenkel Topping Group, Good Energy Group, JKX Oil & Gas, Lombard Medical Technologies, Nationwide Accident Repair Services, Netplay TV, Surgical Innovations Group

AGMS
Low & Bonar

UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Industrial Production (09:30)
Manufacturing Production (09:30)
UK Trade (09:30)

FINAL DIVIDEND PAYMENT DATE
Domino Printing Sciences, Driver Group, Independent Inv Trust




Europe Market Report
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European stocks may see further upside on Tuesday as U.S. aluminum giant Alcoa reported higher first-quarter profit, beating estimates, and data showed Chinese inflation slowed sharply from a 10-month high in March, easing pressure on policymakers to tighten credit.

China's annual consumer inflation eased more than expected in March, with the CPI index rising 2.1 percent year-over, slower than the 3.2 percent rise in the previous month, the latest figures from the National Bureau of Statistics revealed. Separately, the statistical office reported that the producer price index fell 1.9 percent in the month, in line with expectations.

Asian stocks are broadly higher, led by commodity producers. Australia's All Ordinaries index rose 1.3 percent, Hong Kong's Hang Seng index is gaining a percent and China's Shanghai Composite is moving up half a percent, while stocks elsewhere are posting modest gains. The Asian Development Bank said today that rising private consumption and stronger intraregional trade will spur a pickup in growth in developing Asia in 2013 and 2014 despite weakness in the economies of the United States and Europe.

In economic releases, U.K. retail sales rose 1.9 percent on a like-for-like basis in March compared with a 2.7 percent increase in February, as unseasonably cold weather kept clothing sales in check, the British Retail Consortium said. Overall retail sales increased 3.7 percent from a year ago.

Separately, home sales in the United Kingdom hit a three-year high in March, helped by a Bank of England lending scheme, the Royal Institute of Chartered Surveyors reported. The RICS survey showed residential house price balance rose to minus-1 from the February reading of minus-7.

Investors await German foreign trade and U.K. industrial production data for more clues over the euro zone's economic outlook.

Across the Atlantic, trading will likely be impacted by reaction to Alcoa's quarterly results, although activity may be somewhat subdued amid another relatively quiet day on the economic front. Meanwhile, Federal Reserve Chairman Ben Bernanke said in a speech Monday that U.S. banks have grown much stronger since the financial crisis, thanks in part to government stress tests.

The U.S. economy is significantly stronger than it was four years ago, although conditions are clearly still far from where we would all like them to be," Bernanke said at a conference in Stone Mountain, Georgia.

In domestic corporate news, French luxury goods company LVMH Moet Hennessy Louis Vuitton announced a second edition of its "Journées Particulières" event, which took place first in 2011. "This year's event will be bigger and will feature more companies and exceptional sites", the company said.

European stocks rebounded from Friday's sell-off on Monday after data showed German industrial output rebounded in February and Portugal Prime Minister Pedro Passos Coelho pledged to cut spending agreed with the European Union and the International Monetary Fund despite a court ruling blocking pay and benefit cuts in this year's austerity budget. The German DAX and France's CAC 40 edged up marginally, while the U.K.'s FTSE 100 gained 0.4 percent and the SMI of Switzerland advanced 0.7 percent.

U.S. stocks erased early losses to post modest gains overnight, as investors looked ahead to results from Alcoa and a speech by Federal Reserve Chairman Ben Bernanke after the market close. The Dow rose 0.3 percent, while the tech-heavy Nasdaq and the S&P 500 added about 0.6 percent each.




US Market Report
US close: Stocks climb on earnings results
- Earnings results boost equities
- IMF says global economy improving
- Obama to cut stimulus in budget

Dow Jones Industrials: 0.33%
Nasdaq Comnposite: 0.57%
S&P 500: 0.63%

US equities rose Monday as earnings results boosted investor confidence and the International Monetary Fund (IMF) said the global economy was picking up.

Highly anticipated quarterly results out from aluminium manufacturer Alco beat analysts' estimates as demand from airplane and car manufacturers increased.

The company reported net income of $149m, up from $94m a year earlier. The results pointed to an improvement in the aerospace market and sector for engineered products.

Meanwhile, IMF Managing Director Christine Lagarde said that the world economy is improving overall even though risks remain, particularly in Europe.

"A substantial portion of the global economy looks better today that it did last year," Lagarde insisted in a speech given on Monday in the Boao Forum for Asia.

"However, global growth remains lopsided and the recovery is still patchy and prone to risks, notably in the Eurozone."

The US also has work ahead before it is out of the woods. Job-creation figures last week fell short of expectations and underlined the US economy's fragility.

The data was said to have prompted President Barack Obama to cut stimulus in the budget for fiscal 2014 which is set for release on April 10th.

"This is not our ideal budget," Gene Sperling, director of the White House's National Economic Council, told Bloomberg Television.

"This does reflect a compromise offer. There's measures in here we would prefer not to take."

The budget will propose reducing Social Security recipients' annual cost-of-living adjustments by changing the inflation calculation, according to an outline released last week. The Medicare insurance programme for the elderly will also be reduced.

On the company front, Advanced Micro Devices Inc. shares advanced after Microsoft Corp. was said to use the company's chips in its next Xbox game console.

BioCryst Pharmaceuticals Inc. surged as China expedited the approval of its anti-influenza drug Peramivir.

Lufkin Industries Inc. climbed as General Electric Co. agreed to buy the company.

10 year US treasury yields increased 0.03 basis points to 1.94%.

Front month West Texas crude futures were up by 0.85% to the $93.50 per barrel on the NYMEX.

S&P 500 - Risers
Advanced Micro Devices Inc. (AMD) $2.59 +13.10%
Monster Beverage Corp (MNST) $52.01 +4.69%
Wynn Resorts Ltd. (WYNN) $122.68 +3.93%
Quanta Services Inc. (PWR) $27.98 +3.90%
Viacom Inc. Class B (VIAB) $65.49 +3.87%
American International Group Inc. (AIG) $40.09 +3.81%
Hartford Financial Services Group Inc. (HIG) $26.08 +3.62%
Noble Energy Inc. (NBL) $115.59 +3.60%
QEP Resources Inc (QEP) $30.87 +3.59%
Owens-Illinois Inc. (OI) $25.58 +3.40%

S&P 500 - Fallers
Apollo Group Inc. (APOL) $16.65 -2.40%
Time Warner Cable Inc. (TWC) $95.97 -1.64%
BMC Software Inc. (BMC) $44.45 -1.46%
Darden Restaurants Inc. (DRI) $49.90 -1.27%
Citrix Systems Inc. (CTXS) $68.04 -1.25%
CA Inc. (CA) $24.30 -1.22%
Johnson & Johnson (JNJ) $81.11 -1.13%
Jabil Circuit Inc. (JBL) $18.11 -1.09%
Tyson Foods Inc. (TSN) $23.77 -1.08%
AT&T Inc. (T) $37.62 -1.05%

Dow Jones I.A - Risers
Bank of America Corp. (BAC) $12.21 +2.01%
Coca-Cola Co. (KO) $40.86 +1.95%
Walt Disney Co. (DIS) $58.82 +1.94%
Alcoa Inc. (AA) $8.39 +1.82%
Home Depot Inc. (HD) $71.22 +1.66%
JP Morgan Chase & Co. (JPM) $48.58 +1.40%
Wal-Mart Stores Inc. (WMT) $77.29 +1.18%
United Technologies Corp. (UTX) $93.71 +1.16%
General Electric Co. (GE) $23.12 +0.83%
Merck & Co. Inc. (MRK) $45.48 +0.78%

Dow Jones I.A - Fallers
Johnson & Johnson (JNJ) $81.11 -1.13%
AT&T Inc. (T) $37.62 -1.05%
Caterpillar Inc. (CAT) $84.19 -0.48%
Exxon Mobil Corp. (XOM) $88.60 -0.46%
Microsoft Corp. (MSFT) $28.59 -0.38%
Unitedhealth Group Inc. (UNH) $61.89 -0.34%
Verizon Communications Inc. (VZ) $49.43 -0.26%
Cisco Systems Inc. (CSCO) $20.57 -0.19%
Hewlett-Packard Co. (HPQ) $21.93 -0.18%
International Business Machines Corp. (IBM) $209.32 -0.04%

Nasdaq 100 - Risers
Monster Beverage Corp (MNST) $52.01 +4.69%
Wynn Resorts Ltd. (WYNN) $122.68 +3.93%
Viacom Inc. Class B (VIAB) $65.49 +3.87%
Texas Instruments Inc (TXN) $35.07 +2.54%
News Corp. Class A (NWSA) $31.41 +2.51%
Fastenal Co. (FAST) $50.29 +2.24%
Bed Bath & Beyond Inc. (BBBY) $65.03 +1.99%
Staples Inc. (SPLS) $13.36 +1.98%
Verisk Analytics Inc. (VRSK) $59.93 +1.75%
Liberty Interactive Corp (LINTA) $21.16 +1.73%

Nasdaq 100 - Fallers
Facebook Inc. (FB) $26.85 -1.98%
BMC Software Inc. (BMC) $44.45 -1.46%
Citrix Systems Inc. (CTXS) $68.04 -1.25%
CA Inc. (CA) $24.30 -1.22%
Nuance Communications Inc. (NUAN) $20.27 -1.22%
Google Inc. (GOOG) $774.85 -1.05%
Alexion Pharmaceuticals Inc. (ALXN) $98.18 -1.03%
Intuit Inc. (INTU) $63.84 -0.96%
Vertex Pharmaceuticals Inc. (VRTX) $52.74 -0.92%
Mylan Inc. (MYL) $28.37 -0.91%




Forex, Commodities and Newspaper round-up
FX round-up: Yen drops to four-year low against dollar
The yen was hammered on Monday, falling to its worst level in four years against the dollar, as the Bank of Japan (BoJ) started its aggressive monetary easing measures in an attempt to battle deflation.

The greenback bought 99.21 yen in afternoon trade, up from ¥97.33 the day before, making the Japanese currency the cheapest since April 2009.

When the BoJ first announced its new stimulus programme, under new Governor Haruhiko Kuroda, the dollar was buying ¥92.89.

"Sheer momentum now brings 100 into play for USD-JPY, with the Japanese currency already trading at levels not seen since mid-2009," said Alex Young, a Senior Sales Trader at CMC Markets.

Kuroda announced on Thursday that the BoJ had left rates untouched at record lows but indicated that it would pursue aggressive quantitative easing as long it was necessary in order to achieve its 2.0% inflation target. It said that it aims to meet this target within two years.

The flows out of Japan were thought to be the reason why the Australian dollar rose to from ¥101.19 to ¥103.16 over the day.
Commodities: Oil rises on supply fears
Crude oil futures made their first gain in four sessions on Monday, with supply concerns boosting the price by 66 cents.

The May contract rose 0.7% to $93.36 a barrel on the New York Mercantile Exchange, from $92.70 on Friday.

There were fears over future supply after discussions between global leaders and Iran on nuclear energy failed to deliver an agreement.

Concerns also arose on the back of Nigerian conflicts - Nigeria is Africa's biggest oil producer.

Meanwhile, May natural gas dropped one per cent to settle at $4.08 per million British thermal units, compared to an earlier high of $4.18.

In metals, the June contract for gold declined 0.2%, equal to $3.40, to end the day at $1,572.50.
Tuesday newspaper round-up: Chinese inflation, KPMG, UK economy...
Chinese inflation slowed sharply in March on the back of falling food prices following the New Year holiday and as the People's Bank of China drained money from the economy, says Financial Times. Consumer prices rose at an annual rate of 2.1 per cent in March, below forecasts.

Accounting giant KPMG faces a possible inquiry over its audit of failed lender HBOS, reports The Telegraph. The paper says that KPMG gave HBOS a clean bill of health yet the Parliamentary Commission on Banking Standards found that it was carrying £47bn of losses when it was rescued by the government.

House sales were at their highest since 2010 in the first quarter, while like-for-like retail sales figures in March were the strongest since 2009, which raises hopes that the UK economy is emerging from the doldrums, says The Guardian. The paper said: "With the release of the next set of quarterly growth figures due later this month, the upbeat data from surveyors and retailers is likely to dampen speculation that Britain slipped into an unprecedented triple-dip recession during the first quarter of 2013."

According to The Guardian, the new Secretary of the US Treasury Jack Lew has urged Europe to focus on growth on the back of fears that Portugal could be headed for another bailout. "Our economy's strength remains sensitive to events beyond our shores and we have an immense stake in Europe's health and stability," Lew said. "The Unites States has no bigger, no more important economic relationship that it does with Europe."

Mortgage fees jumped to a 25-year high, breaking through the £1,500 mark, "as banks sting homeowners despite enjoying cheap money through the Funding for Lending Scheme," writes The Times.

Sir Richard Branson has claimed that the Heathrow take-off and landing slots received by Virgin Atlantic's new domestic airline Little Red were just "crumbs off the table", reports The Independent. Virgin was able to get its hands on the slots after British Airways had to hand them over as part of its deal to buy bmi.

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