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Showing posts with label ADVFN III Morning Euro Markets Bulletin (January 7th. Show all posts
Showing posts with label ADVFN III Morning Euro Markets Bulletin (January 7th. Show all posts

Jan 7, 2013

ADVFN III Morning Euro Markets Bulletin (January 7th, 2013)..

ADVFN III Morning Euro Markets Bulletin
Daily world financial news Monday, 07 January 2013



London Market Report
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London open: Footsie pulls back despite strong showing by banks
Market Movers
  • techMARK 2,166.16 -0.35%
  • FTSE 100 6,079.50 -0.17%
  • FTSE 250 12,690.76 -0.03%
After hitting a near two-year high the previous trading session, profit-taking meant that the FTSE 100 opened slightly lower on Monday morning. This was despite relative strength in the banking sector on the back of some better-than-expected news on regulation.

The FTSE 100 finished Friday at 6,090; just one point shy of the February 8th 2011 high of 6,091.

"With little to stimulate stock markets today given the lack of economic data and ongoing concerns about the next showdown between US lawmakers, traders are taking profit," said market strategist Ishaq Siddiqi from ETX Capital.

"Most major stock markets are trading near fresh 12-month highs; this provides traders the perfect opportunity to take some cash off the table ahead of another week of key global macroeconomic data," he said.

Investors will be keeping close eyes on decisions from central banks this week. Neither the Bank of England (BoE) nor the European Central Bank (ECB) are expected to make a move this week.

However, until the budget negotiations Stateside are decisively concluded, economic uncertainty is expected to continue to cast a cloud over decision making, albeit to a lesser extent than was feared before last week's fiscal cliff agreement, "so that the need for further easing cannot be dismissed", according to analysts at Digital Look. "Unwelcome surprises out of the Eurozone" would also be a factor, they said.
FTSE 100: Morrisons shrugs off "disappointing" Christmas
Despite saying that it was disappointed with its sales performance during Christmas, supermarket giant Morrisons was making gains early on, as investors shrugged off the news that sales (ex fuel) fell 0.9% in the six months to December 30th. Nevertheless, the company did say that its full-year performance would be in line with expectations.

Seymour Pierce this morning reduced its target for the stock from 250p to 230p, maintaining its 'reduce' rating. Sector peers Tesco and Sainsbury were also in demand.

Insurance giant Legal & General gained after saying that it has improved the return on equity (RoE) and profitability of new business within its American subsidiary after completing a further phase of its capital efficiency programme.

Power systems giant Rolls-Royce was under the weather on reports of further bribery allegations. The latest rumours suggest that the company paid bribes to a person involved in deals worth $2bn with two Chinese airlines.

Banking peers RBS, Lloyds and Barclays were high risers after regulators eased rules on cash buffers, giving lenders more time and greater flexibility to comply with Basel III liquid coverage ratio requirements.

Market analyst Michael Hewson from CMC Markets said: "The banks have been lobbying persistently over the past months to the effect that the strict timetable was impairing their ability to lend to the real economy, thus hampering the broader economic recovery. They also claimed that the narrow definition of assets they were allowed to hold was hampering their ability to make profits. It appears the banks have got their way in this regard."
FTSE 250: Bumi gains after battling agains weak coal prices
Mining group Bumi rose after saying that it continues to target a medium-term production target of 30mt each year and in light of the weak coal price environment, it will focus on lower cost pits and defer some of its expansion plans.

Support services and construction group Interserve also rose after saying it is to expand its operational footprint in the oil and gas services market with the acquisition of a majority stake in Willbros Middle East.

Euromoney, the international online information and events group, was higher after moving into the technology sector with an $8m-offer to buy up Californian outfit TTI/Vanguard.

High Street betting shop Ladbrokes gained after confirming speculation that it is in talks to buy Irish betting exchange Betdaq.

Also flying higher was budget airline easyJet after it managed to increase both its passenger numbers and load factor in last month.

UK Event Calendar
Monday January 07

TRADING ANNOUNCEMENTS
Morrisons

INTERIM DIVIDEND PAYMENT DATE
Hill & Smith Holdings, London Stock Exchange Group, May Gurney Integrated Services

INTERNATIONAL ECOBNOMIC ANNOUNCEMENTS
Producer prices (EU-19) (Nov)

GMS
Gemfields, Ideagen

SPECIAL DIVIDEND PAYMENT DATE
British Empire Securities & General Trust

FINAL DIVIDEND PAYMENT DATE
British Empire Securities & General Trust, Origin Enterprises

FINAL EX-DIVIDEND DATE
Barloworld Ltd.

UK ECONOMIC ANNOUNCEMENTS
New car registrations (UK) (Dec)


Europe Market Report
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Europe open: Global authorities ease bank liquidity rules
-Supervisors ease implementation of global liquidity rules
-china sovereign weath fund goes shopping in Germany
-Epiphany feast day in Southern Europe
-No major economic releases expected

FTSE-100: -0.24%
Dax-30: -0.25%
Cac-40: 0.21%
FTSE Mibtel 30: 0.53%
Ibex 35: 0.46%
Stoxx 600: -0.04%

The main European equity benchmarks have begun the day on a mixed footing. That ahead of this week's rate-setting meetings of the Bank of England and European Central Bank (ECB). Nevertheless, some market commentary holds that the ECB's will be a 'non-event' given recent signs of cyclical improvement. Those same analysts will be training their sights, instead, on the first Italian and Spanish sovereign bond auctions of the year, which are scheduled to take place later in the week. For their part, analysts at Unicredit highlight that both issues will embed so-called 'collective action clauses' (CACs).

Perhaps lessening the need for monetary authorities to act further, yesterday evening the Group of Governors and Heads of Supervision (GHOS) announced modifications to the global liquidity rules set to come into effect for the world's main lenders. The new agreement prolongs the implementation phase for the so-called liquidity coverage ratio (LCR) and expands the types of assets eligible.

Acting as a backdrop, over the weekend US Senate majority leader Mitch Mc.Connell indicated that Republicans are not willing to raise taxes any further. This initial stance may just be a part of the negotiation process expected to take place over the next month approximately. Also worth mentioning, as far as market 'technicals' are concerned are: European equityies are near 22 month highs, after rising by 20% Chinese equities have entered a 'bull market', levels of volatility have hit relative new lows in the US (the VIX fell below 14 last Friday).

Today is the feast day of the Epiphany in several Southern European nations, which may weigh on trading volumes in their respective bourses.
China goes shopping in Germany
Shares of Daimler are adding 1% following a report that sovereign wealth fund China Investment Corp. may buy a stake in the company. CIC may acquire up to a 10% stake.

Infineon Technologies has been downgraded to underperform, the equivalent of a sell recommendation, from neutral at Bank of America Corp.

From a sector stand-point the best performance on the DJ Stoxx 600 is now to be seen in shares of Banks (2.09%), Insurance (0.52%) and Financial services (0.33%).

No major macroeconomic releases are slated for release today
Investors now net long the single currency

The euro/dollar is moving slightly lower at the moment, by 0.36% to the 1.3022 dollar mark. The latest weekly IMM data showed euro positioning turn marginally net long for the first time since August 2011. For many that means that the risk of weakness in that currency unit is now proportionately higher.

Front month Brent crude futures are down by 0.415 dollars to the 110.85 dollar level on the ICE.

US Market Report
US close: Slight gains after employment report
- Fed (Bullard): QE dependant on economy not dates
- Fed (Lacker): Sees increased risks of higher inflation in 2014
- Republican Senator threatens with government shutdown
- Gold futures fall after FOMC

Dow Jones Industrials: 0.33%
Nasdaq Comp.: 0.04%
S&P 500: 0.49%

The main US equity benchmarks ended the day slightly in the blue following the release of better than expected data on the US services sector.

In turn, that came on the back of what at first glance appeared to have been an over - all better than expected monthly employment report, with the only exception of an unexpected up-tick in the unemployment rate.

Of interest, some market commentary was calling attention to comments by Texas Republican Senator, John Cornyn, who sits on the Senate Finance Committee, threatening a government shutdown if President Obama and Democrats don't agree to cut government spending in the coming months.

UBS believes that a downgrade of the country´s long-term debt rating by Moody´s is likely in the next three months if there is no debt agreement.

Gold was again on the retreat after Thursday night´s minutes of the Federal Reserve´s last policy meeting showed support for further quantitative easing to be on the wane.

Acting as a backdrop, and as might have been expected after yesterday´s Fed minutes, different Fed speakers were being cited as having put forth different – and contradictory - policy views.
Goldman positive on Citigroup
Meantime, and on the corporate front, analysts at Goldman Sachs on Friday added Citigroup to their Conviction Buy list, although they shifted their stance on JP Morgan down to buy from Conviction buy.

Grocery retailer Supervalu rocketed higher on reports that private equity firm Cerberus could buy some of its assets and take a stake in others.

Pharmceutical giant Eli Lilly jumped as it forecast 2013 earnings ahead of analysts´ expectations.

Johnson & Johnson has shown interest in Warburg Pincus LLC's contact-lens manufacturer Bausch & Lomb. Warburg wants at least $10bn for the business, according to people familiar with the situation, Bloomberg reported.

Furthermore, analysts at Deutsche Bank upgraded shares of the company to buy from hold.

From a sector stand-point the best performance was to be seen in the following industry groups: Autmobiles (2.43%), Investment services (2.66%) and Asset managers (2.21%).
Better than forecast services data

US non-farm payrolls rose by 155,000 in December, slightly ahead of the 152.000 forecast by the consensus. As well, the previous month´s data was revised up slightly. More notably, earnings per hour came in quite a bit better than expected.

The Institute for Supply Management´s index of U.S. non-manufacturing businesses rose to 56.1 in December from 54.7 a month earlier (Consensus: 54.1).

Factory orders remained unchanged in November in month-on-month terms of change (Consensus: 0.4%). Slight fall in crude futures

Front month West Texas crude futures closed 0.29% higher at the 93.19 dollar per barrel mark on NYMEX after an 11.1m barrel drop in commercial crude inventories last week.

10 year US Treasury yields were down by 1 basis point, at 1.90%.

S&P 500 - Risers
Windstream Corp. (WIN) $9.32 +4.95%
Federated Investors Inc. (FII) $22.55 +4.79%
CME Group Inc. (CME) $53.77 +4.29%
AutoNation Inc. (AN) $42.23 +4.07%
Chesapeake Energy Corp. (CHK) $17.45 +4.05%
Advanced Micro Devices Inc. (AMD) $2.59 +4.02%
First Horizon National Corp. (FHN) $10.46 +3.98%
Eli Lilly and Company (LLY) $51.56 +3.70%
PerkinElmer Inc. (PKI) $33.17 +3.66%
Western Union Co. (WU) $14.02 +3.62%

S&P 500 - Fallers
Apple Inc. (AAPL) $527.00 -2.78%
Tesoro Corp. (TSO) $42.54 -2.72%
Scripps Network Interactive Inc. (SNI) $58.31 -2.61%
First Solar Inc. (FSLR) $33.59 -2.40%
Microsoft Corp. (MSFT) $26.74 -1.87%
Cliffs Natural Resources Inc. (CLF) $37.49 -1.78%
Analog Devices Inc. (ADI) $42.52 -1.78%
Walgreen Co. (WAG) $37.18 -1.61%
QUALCOMM Inc. (QCOM) $63.50 -1.47%
Ross Stores Inc. (ROST) $57.95 -1.41%

Dow Jones I.A - Risers
Alcoa Inc. (AA) $9.26 +2.09%
Walt Disney Co. (DIS) $52.19 +1.91%
JP Morgan Chase & Co. (JPM) $45.36 +1.77%
Bank of America Corp. (BAC) $12.11 +1.25%
Johnson & Johnson (JNJ) $71.55 +1.15%
American Express Co. (AXP) $59.61 +1.03%
E.I. du Pont de Nemours and Co. (DD) $45.73 +0.97%
Travelers Company Inc. (TRV) $74.06 +0.87%
United Technologies Corp. (UTX) $84.98 +0.79%
3M Co. (MMM) $95.37 +0.74%

Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $26.74 -1.87%
McDonald's Corp. (MCD) $89.85 -0.86%
Merck & Co. Inc. (MRK) $41.97 -0.85%
Intel Corp. (INTC) $21.16 -0.75%
International Business Machines Corp. (IBM) $193.99 -0.66%
Home Depot Inc. (HD) $63.18 -0.19%
Hewlett-Packard Co. (HPQ) $15.14 -0.00%

Nasdaq 100 - Risers
Facebook Inc. (FB) $28.76 +3.56%
Nvidia Corp. (NVDA) $13.15 +3.30%
Expedia Inc. (EXPE) $64.46 +2.59%
Fossil Inc. (FOSL) $97.12 +2.19%
Mylan Inc. (MYL) $28.20 +2.10%
Google Inc. (GOOG) $737.97 +1.98%
Vodafone Group Plc ADS (VOD) $25.81 +1.94%
Expeditors International Of Washington Inc. (EXPD) $41.82 +1.93%
Viacom Inc. Class B (VIAB) $57.51 +1.88%
CA Inc. (CA) $23.05 +1.77%

Nasdaq 100 - Fallers
Apple Inc. (AAPL) $527.00 -2.78%
Randgold Resources Ltd. Ads (GOLD) $95.83 -2.01%
Microsoft Corp. (MSFT) $26.74 -1.87%
Maxim Integrated Products Inc. (MXIM) $29.80 -1.84%
Analog Devices Inc. (ADI) $42.52 -1.78%
QUALCOMM Inc. (QCOM) $63.50 -1.47%
Ross Stores Inc. (ROST) $57.95 -1.41%
Xilinx Inc. (XLNX) $36.50 -1.40%
Biogen Idec Inc. (BIIB) $145.93 -1.31%
Akamai Technologies Inc. (AKAM) $40.43 -1.27%


FX and Commodities round-up
FX round-up: Dollar remains firm after US jobs report
The dollar remained strong against the yen and the euro on Friday but off recent highs as the latest report showed the US economy continued to add jobs in December but at a slightly slower rate than the month before.

The dollar index, which measures the US currency against a basket of six others, rose to a high of 80.834 before later trading at 80.440 after the US jobs report.

The US Department of Labor said 155,000 jobs were added in December compared to an upwardly revised increase of 161,000 in November. The unemployment rate remained at 7.8%.

Dollar gains were also pressured slightly after minutes from the Federal Reserve's December meeting indicated policymakers may wind down their quantitative easing programme at the end of this year.

Against the euro, the dollar changed hands at $1.3082 compared to $1.3053 on Thursday.

The greenback traded at ¥88.13 from ¥87.26 the previous session while the euro rose to ¥115.29 compared to ¥113.84 on Thursday.

Sterling declined to $1.6078 from $1.6102.
Commodities: Crude rises in wake of inventories report
US oil futures nudged higher on Friday as traders mulled a hefty draw on weekly crude stockpiles while non-farm payrolls data also provided some support.

Crude for February delivery climbed 17 cents to settle at $93.09 a barrel on the New York Mercantile Exchange although the stronger dollar kept gains in check. Oil prices have risen 2.5% since the start of 2013.

Prices had spiked earlier in the week after US lawmakers approved a last minute deal to avoid the fiscal cliff.

By Friday focus turned to the Energy Information Administration report, which showed crude supplies fell by a massive 11m barrels compared to a forecast for a decline of 0.9m barrels.

The report, which was two days later than usual because of the New Year holiday, also showed gasoline supplies rose by 2.6m barrels instead of an expected rise of 2.3m barrels. Meanwhile distillates rose 4.6m barrels. Analysts had predicted distillates to rise 1.6m barrels.

Following the supply report, markets digested the latest report from the US Department of Labor, that showed 155,000 jobs were added in December, down slightly from an upwardly revised increase of 161,000 in November. The unemployment rate remained at 7.8%.

Among precious metals gold nursed a 1.5% loss on Friday as traders bet that the Federal Reserve could wind down its quantitative easing programme in 2013 after minutes from its last meeting on Thursday.

Gold for February delivery dropped $25.70 to settle at $1,648.90 an ounce on the Comex division of the New York Mercantile Exchange after plummeting to an intra-day low of $1,626.

Bullion recovered from lows after Friday's US job report although the dollar's strength kept gold in negative territory.

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