| US Market Reports |
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Stocks are showing a lack of direction in early trading on Wednesday, as traders weigh a better than expected private jobs report against an increase by the price of oil above $100 a barrel. The major averages are lingering near the unchanged line.
While payroll processor ADP released a report before the start of trading showing that private sector employment increased by more than expected, the optimism generated by the report was offset by concerns about the economic impact of higher fuel prices.
ADP said private employment increased by 217,000 jobs in February following an upwardly revised increase of 189,000 jobs in January. Economists had expected an increase of about 165,000 jobs compared to the addition of 187,000 jobs originally reported for the previous month.
Meanwhile, crude for April delivery is currently up $0.89 at $100.52 a barrel amid concerns about ongoing unrest in the Middle East and North Africa. In earlier trading, the price of oil reached a high of $101.47 a barrel.
Another factor likely to drive oil prices is the Energy Information Administration's weekly oil inventories report for the week ended February 25th. The report will be made public at 10:30 a.m. ET.
In the afternoon, the Federal Reserve is due to release its Beige Book report, a compilation of commentary based on economic conditions from each of the 12 Fed districts.
Most of the major sectors are showing only modest moves in early trading, although notable strength has emerged among housing and semiconductor stocks. On the other hand, energy stocks are seeing early weakness despite the increase by the price of crude oil.
The major averages are currently turning in a mixed performance, although they are all nearly flat. While the Dow is down 3.71 points at 12,054.31, the Nasdaq is up 1.98 points at 2,739.39 and the S&P 500 is up 0.45 points at 1,306.78.
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European Market Reports |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
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Asia Market Reports |
| Nikkei 225 | Hang Seng | Bse Sensex | S&P/ASX 20 |
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Asian Markets Plunge On Rising Crude Oil Prices, Geopolitical Concerns
Asian markets open for trading on Wednesday ended in negative territory following weak Wall Street cues where the major averages ended sharply lower in the previous session. Crude oil prices in the international market, which had showed signs of cooling off in the past two or three days, reversed its trend amid growing uncertainty and unrest in Libya, and touched the psychological $100 a barrel mark. Traders expressed concerns about the rising oil prices and its negative impact of sustaining economic recovery and resorted to limiting their holdings. All the markets in the region, except India which was closed for a public holiday, ended in the red with moderate losses.
In Australia, the benchmark S&P/ASX200 Index was down 23.20 points, or 0.48 percent, to 4,803.20 points, while the broader All Ordinaries Index ended at 4,898.30 points, representing a loss of 22.10 points, or 0.45 percent.
On the economic front, a report released by the Australian Bureau of Statisticsrevealed that the country's Gross Domestic Product increased in the 4th quarter of 2010 by 0.7 percent over its Q3 levels. The Statistics Bureau further noted that GDP was up 2.7 percent compared to one year ago. Both figures were in line with the projections of most economists. Non-farm GDP increased 0.8 percent in the December 2010 quarter, the ABS said. The Bureau also downwardly revised its third quarter GDP figures, saying Q3 GDP was up 0.1 percent on quarter rather than the 0.2 percent gain originally reported.
A report released by the Housing Industry Association in Australia revealed that sales of new homes in the country increased in January by 2.5 percent over December. HIA's survey found sales of stand-alone home increased 2.2 percent on month while multi-unit home sales rose 5.0 percent. For the three month period to January 2011, stand-alone home sales were up 3.7 percent over the previous three month period, but down 9.8 percent from the same period in 2010.
Light sweet crude oil futures for April delivery was trading at $100.31 a barrel in electronic trading, up $0.68 per barrel from previous close at $99.63 a barrel in New York on Tuesday.
Oil related stocks ended mixed following rise in crude oil prices above $100 a barrel mark in the international market. Woodside Petroleum and Santos Oil ended in negative territory with minor losses.
Banking stocks ended weaker with all the four major banks - ANZ Bank,Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp - registering marginal losses on profit taking.
Retailers also ended in the red on increasing concerns about higher crude oil prices impacting global economic recovery.
In Japan, the benchmark Nikkei 225 Index dropped 261.65 points, or 2.43 percent, to 10,492.38, while the broader Topix index of first section issues was down 20.83 points, or 2.16 percent, to 942.87.
On the economic front, a report released by the Bank of Japan revealed that the monetary base in the country was up 5.6 percent on year in February, standing at 101.003 trillion yen. That follows a 5.5 percent annual expansion in January. Banknotes in circulation were up 2.4 percent on year, while coins in circulation were down an annual 0.1 percent. Current account balances surged 23.3 percent on year, including a 19.7 percent spike in reserve balances. The adjusted monetary base was down 2.1 percent on year in February following the 9.9 percent contraction in the previous month, coming in at 100.906 trillion yen.
Light sweet crude oil futures for April delivery was trading at $100.31 a barrel in electronic trading, up $0.68 per barrel from previous close at $99.63 a barrel in New York on Tuesday.
Shares of almost all the 33 sectors in the index ended in negative territory, with glassand ceramics sector leading the losses.
In Glass and ceramics sector, Asahi Glass Co declined 4.30 percent, Nippon Electric Glass Co., plunged 4.24 percent, and NGK Insulators declined 3.41 percent.
Real estate related stocks also ended sharply lower. Mitsui Fudosan plunged 3.97 percent, Mitsubishi Estate Co. Ltd lost 3.82 percent and Sumitomo Realty & Development declined 2.89 percent.
In China, the benchmark Shanghai Composite Index ended in negative territory with a marginal loss of 4.65 points, or 0.16 percent, at 2,914.28.
In Hong Kong, the benchmark HangSeng Index plunged lower by 347.76 points, or 1.49 percent, and closed at 23,048.66.
In Indonesia, the benchmark Jakarta Composite Index ended in negative territory with a loss of 26.42 points, or 0.75 percent, at 3,486.20..
In Singapore, the Strait Times Index ended at 3,027.51, registering a loss of 40.09 points, or 1.31 percent, from previous close.
In South Korea, the benchmark KOSPI Index ended at 1,928.24, registering a moderate loss of 11.06 points, or 0.57 percent from previous close.
In Taiwan, the benchmark Taiwan Weighted Index ended in negative territory with a moderate loss of 107.66 points, or 1.23 percent, at 8.619.90.
In India, the markets were closed for a public holiday.
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Forex Top Story |
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Dollar Fails To Fight Back Amid ECB Rate Hike Chatter
The dollar was stuck in the mud on Wednesday amid speculation that policy makers inEurope will react to soaring food and energy prices by raising rates much sooner than forecast.
Meanwhile, here in the U.S. Federal Reserve Chairman Ben Bernanke has said that commodity induced inflation pressures will be moderate and temporary, suggesting the Fed will complete is $600 billion bond buying program.
With the interest rate gap between the U.S. and other major economies seen widening, the dollar has been hammered this week, dropping to its lowest in months versus a basket of major rivals.
The dollar gave back modest gains from the previous session against the euro, moving within a hair of a recent 4-month low of $1.3852.
The buck also hovered near yesterday's yearly low of $1.6328 versus the sterling.
The European Central Bank will announce its latest decision on interest rates Thursday. While a rate hike would be a surprise, the ECB is widely expected to signal discomfort with rising prices.
Eurozone producer price inflation accelerated in January, adding fuel to concerns over rising inflationary pressures.
The producer price index rose 6.1 percent year-on-year following the 5.3 percent increase in December, Eurostat said Wednesday.
Credit rating agency Standard & Poor's affirmed the creditwatch negative on sovereign credit ratings of Portugal and Greece, suggesting that further downgrades are possible.
The dollar was back on defense versus the petro-linked Canadian loonie, nearing yesterday's 3-year low of C$0.9683. The greenback was at C$0.9710 as of 8:30 am ET.
Canadian industrial product prices rose for a sixth consecutive month in January, as concerns about energy supplies from the Middle East drove petroleum prices sharply higher.
Canadian Market Reports |
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TSX May Struggle To Move Higher Amid Weak Global Cues Toronto stocks may struggle to move higher at open Wednesday amid weak cues from the global equity markets, even as commodities remain firm. However, a huge order toBombardier from Berkshire Hathaway could help lift sentiment.
Global stocks moved lower amid a surge in crude prices as concerns increased over instability in the oil-rich Middle East and North Africa. While most Asian markets tumbled overnight, European stocks were trading weak.
U.S. stock futures were pointing to a lower open. Latest data revealed that private sector employment in the U.S. increased by much more than anticipated in February.
Meanwhile, the Canadian dollar advanced to 97 cents per U.S. dollar, levels not seen since late 2007.
On Tuesday, the S&P/TSX Composite Index edged down 13.65 points or 0.10 percent to 14,122.85.
The price of crude oil shot back above $100 amid intense geopolitical tensions in the Middle East as Qaddafi clings to power in Libya. Crude for April gained $1.48 to $101.11 a barrel.
The price of gold was steady near its record high Wednesday morning amid inflation concerns. Yesterday, gold advanced to a record high above $1,435 before settling at $1,431.20 as safe haven demand rose amid escalating tensions in the Middle East. Gold for April was up $3.50 to $1,434.70 an ounce.
In corporate news from Canada, airplanes and trains making company Bombardier Inc. announced a firm order from NetJets Inc., a Berkshire Hathaway Inc. company, for 50 Global business jets with options for an additional 70 Global aircraft for nearly $6.7 billion.
Financial services provider CI Financial Corp. said that assets under management at February 28, 2011 were C$75.3 billion, an increase of C$11.4 billion or 17.8 percent from C$63.9 billion at February 28, 2010.
Silver resource company Silver Standard Resources swung to profit in fourth quarter, reporting net earnings of $376.58 million or $4.75 per share, compared to a loss of $9.13 million or $0.13 per share in the prior year. The company estimates to produce 8.5 million ounces of silver and 10.0 million pounds of zinc in 2011.
Intermediate natural gas and oil royalty trust Daylight Energy reported improved fourth quarter funds from operations of C$94.33 million or C$0.43 per share compared to C$72.16 million or C$0.40 per share last year.
Media company Torstar Corp. reported lower fourth quarter net income of C$26.7 million or C$0.33 per share compared to C$57.4 million or C$0.73 per share last year.
Communications services provider Wi-LAN Inc. reported a wider full year loss of C$22.15 million or C$0.21 per share compared to a loss of C$1.67 million or C$0.02 per share a year ago. However, adjusted earnings came in at C$5.0 million or $0.05 per share as compared to C$2.5 million or $0.03 per share a year ago. Analysts were expecting the company to report earnings of C$0.06 per share.
In economic news, Statistics Canada said the Industrial Product Price Index edged up 0.2 percent in January, posting slower growth compared with previous month and missing consensus estimates for 0.5 percent gain. Meanwhile, Raw Materials Price Index edged up 0.3 percent in January, primarily because of higher prices for non-ferrous metals, vegetable products, and animal products.
From south of the border, payroll processing company Automatic Data Processing, Inc. said private employment increased by 217,000 jobs in February following an upwardly revised increase of 189,000 jobs in January. Economists were expecting employment to increase by about 165,000 jobs. |
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