WORLD MARKET UPDATE
https://globaleconomic-trendsanalysis.blogspot.com/2011/07/world-market-update.html
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While the futures had been pointing to a notably higher open on Wall Street, stocks are turning in a lackluster performance in early trading on Wednesday. The major averages are lingering near the unchanged after rising sharply in the previous session. The choppy trading comes as traders digest the latest batch of earnings news, including better than expected quarterly results from Apple. Shares of Apple are currently up by 3.3 percent after reaching a record intraday high. Meanwhile, shares of Yahoo (YHOO) have fallen by 6.1 percent after the internet media giant reported second quarter revenues that fell by more than expected and provided disappointing guidance. With the loss, Yahoo has fallen to a ten-month intraday low. Most of the major sectors are showing only modest moves, although considerable strength is visible among brokerage stocks. The NYSE Arca Broker/Dealer Index is up by 3 percent, with ETrade (ETFC) leading the way higher after Citadel called on the company to consider putting itself up for sale. While some strength is also visible among telecom and banking stocks, software and biotechnology stocks are seeing early weakness. The major averages are currently turning in a mixed performance, with the S&P 500 just above the unchanged line. The S&P 500 is up 0.89 points or 0.1 percent at 1,327.62, while the Dow is down 9.68 points or 0.1 percent at 12,577.74 and the Nasdaq is down 3.82 points or 0.1 percent at 2,822.70. | ||||||||||||||||
European Market Reports | ||||||||||||||||
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Market Movers techMARK 1,909.03 +0.80% FTSE 100 5,854.85 +1.12% FTSE 250 11,705.00 +0.97% Shares are posting strong gains today as the spotlight moves from Europe’s debt woes to the US, where traders are optimistic lawmakers will reach agreement on cutting the world’s biggest economy’s deficit. Chip companies ARM Holdings and Imagination Technologies in particular are taking their lead from the US, though for other reasons, jumping ahead after strong results from the California tech giant Apple, which uses their technology in its gadgets. Among UK stocks updating today, mining giant BHP Billiton is in demand after it achieved another iron ore output record in the year ended 30 June, its eleventh consecutive annual production record. The firm said that annual production records were achieved across four commodities and ten operations "as a result of our strategy to invest throughout the economic cycle." Fellow miners Lonmin, ENRC and Rio Tinto are also wanted. Drugs giant AstraZeneca fell after it (along with US peer Bristol-Myers Squibb) received a blow when the US Food and Drug Administration's (FDA) Advisory Committee rejected their jointly-developed diabetes drug, dapagliflozin, though the vote was a close one. Also in drugs, rattlesnake bite treatment maker BTG is licking its wounds a little despite reporting trading in line with expectations. Sales of CroFab, an antidote used to treat rattlesnake envenomation, and DigiFab, used to treat patients who have ingested too much of the foxglove plant extract digoxin, are “on budget”, the company said, but Peel Hunt lowered its rating on the firm to “hold” from “buy.” Advertising firm WPP is in demand, extending gains from yesterday when it announced that it had invested US$3m for a minority stake in Affectiva, a technology firm that specialises in measuring the emotional responses of consumers. London Stock Exchange (LSE) rose after the stock markets operator put behind it the disappointment of its failed merger with its Canadian counterpart TMX to announce a strong start to its financial year. "With an increase in total income of 14% and growth in many business areas, these strong first quarter results confirm that we continue to make good progress," said Xavier Rolet, the chief executive. Americas-focused silver and gold miner Hochschild Mining moved ahead after it said that it is on track to hit its production targets despite silver output falling by 13% in the first half. Hygiene technologies group Byotrol rocketed more than 50% after saying it has inked a potential multi-million pound contract to supply hand hygiene and surface sanitisation products to pest control services provider Rentokil Initial. FTSE 100 - Risers ITV (ITV) 67.40p +4.09% Barclays (BARC) 219.90p +3.92% Royal Bank of Scotland Group (RBS) 34.34p +3.78% ARM Holdings (ARM) 604.00p +3.69% International Consolidated Airlines Group SA (IAG) 233.50p +2.91% Wolseley (WOS) 1,879.00p +2.62% BHP Billiton (BLT) 2,384.00p +2.49% Petrofac Ltd. (PFC) 1,489.00p +2.41% Eurasian Natural Resources Corp. (ENRC) 777.50p +2.37% RSA Insurance Group (RSA) 134.80p +2.35% FTSE 100 - Fallers AstraZeneca (AZN) 2,977.00p -1.37% Sainsbury (J) (SBRY) 311.70p -1.36% ICAP (IAP) 466.00p -1.23% Imperial Tobacco Group (IMT) 2,116.00p -1.12% Glencore International (GLEN) 483.00p -1.09% Randgold Resources Ltd. (RRS) 5,470.00p -1.00% Shire Plc (SHP) 2,056.00p -0.87% Fresnillo (FRES) 1,650.00p -0.60% Morrison (Wm) Supermarkets (MRW) 293.00p -0.51% Autonomy Corporation (AU.) 1,698.00p -0.29% FTSE 250 - Risers Imagination Technologies Group (IMG) 413.40p +8.68% Misys (MSY) 411.10p +7.79% AZ Electronic Materials SA (WI) (AZEM) 283.10p +4.12% IG Group Holdings (IGG) 449.80p +3.71% Enterprise Inns (ETI) 61.15p +3.64% Ladbrokes (LAD) 145.20p +3.64% Domino's Pizza UK & IRL (DOM) 461.00p +3.48% Punch Taverns (PUB) 70.50p +3.45% Hochschild Mining (HOC) 521.50p +3.37% Betfair Group (BET) 652.00p +3.16% FTSE 250 - Fallers International Personal Finance (IPF) 329.80p -6.84% Daejan Holdings (DJAN) 2,821.00p -2.18% Dixons Retail (DXNS) 15.78p -2.17% BTG (BGC) 292.10p -1.98% Centamin Egypt Ltd. (CEY) 138.80p -1.56% COLT Group SA (COLT) 133.90p -1.54% Devro (DVO) 268.90p -1.50% Telecom Plus (TEP) 652.00p -1.21% Premier Foods (PFD) 20.34p -1.02% Euromoney Institutional Investor (ERM) 644.50p -0.92% | ||||||||||||||||
Asia Market Reports | ||||||||||||||||
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Indian Market Falls On Wipro Earnings The major Asian markets rebounded strongly on Wednesday on the back of positive cues that emerged from Wall Street overnight. Strong U.S. corporate earnings also added to the buoyancy. The Taiwanese and the Australian markets led the gains in the region. Japan’s Nikkei 225 average opened notably higher and moved roughly sideways for the rest of the session. The index closed up 116.18 points or 1.17 percent at 10,006, reclaiming the 10,000 level for the first time since July 11th. A majority of stocks advanced, with tech stocks seeing marked buying interest. Fanuc, Nikon, TDK, Unitika, NKSJ HD and Tokyo Electric were among the biggest gainers. Tokyo Electric was reacting to an announcement by the government that conditions at the company’s quake-ravaged Fukushima nuclear reactor have stabilized and it is on track for a cold shutdown within six months. Australia’s All Ordinaries opened unchanged but rose sharply in early trading before consolidating its gains. The index closed up 79 points or 1.74 percent at 4,618. The market witnessed broad based buying interest, with energy, material and consumer staple stocks seeing particular strength. Miner BHP Billiton (BHP) said its metallurgical coal output rose 19 percent sequentially in the June quarter, although it is still 28 percent below the year-ago period, as operations in Queensland continued to experience the impact of the floods that hit in late 2010 and in early 2011. Meanwhile, iron ore output was up 14 percent year-over-year. The results of a survey by the Westpac/Melbourne Institute suggested that Australia's economy is expected to see a below-trend growth rate in the second half of 2011 due to consumer spending growth. The leading index rose at an annualized rate of 1.6 percent in May, well below its long-term trend of 3 percent. Hong Kong’s Hang Seng Index held above the unchanged line for the better part of the session, surviving a mid-session collapse and ending up 101.29 points or 0.46 percent at 22,004. Thirty-three of the forty-six index components closed higher, with China Coal, China Resources Land, China Mobile and Esprit Holdings advancing strongly. Meanwhile, Hong Kong-based bank stocks retreated, led by index heavyweight HSBC Holdings. CNOOC, which announced a deal to buy Canadian oil sands company OPTI Canada for U.S.$2.1 billion, slid over 3 percent. The Indian market fell on Wednesday after Wipro, the country's third largest software exporter, reported muted first-quarter results and interest rate concerns resurfaced ahead of next week's central bank policy meeting. Wipro shares tumbled 4 percent after the software services exporter announced weak numbers in terms of volume growth, net profit and guidance. Infosys slipped marginally, while TCS closed down 0.7 percent. Rate-sensitive stocks such as Tata Motors, Mahindra & Mahindra and Hero Honda Motors fell between 1.6 percent and 2 percent on concerns that higher interest rates would result in sluggish growth. Ashok Leyland fell 1.7 percent, extended Tuesday's losses , after the commercial vehicles manufacturer reported weak Q1 results. In the banking sector, HDFC Bank, ICICI Bank and SBI fell about 1.6 percent each on concerns over slowing credit demand and increasing margin pressures. Hindalco Industries lost 2.7 percent, Jaiprakash Associates fell 2.5 percent, Tata Power declined 2 percent, NTPC shed 1.8 percent, BHEL moved down 1.3 percent and HDFC closed down a percent. Dr Reddy's Laboratories fell over 2 percent on posting disappointing quarterly results. Among those that gained, property developer DLF rose 1.6 percent and diversified business conglomerate ITC gained 0.9 percent, while car maker Maruti Suzuki and FMCG player Hindustan Unilever posted marginal gains. With industrial output growth rate dipping to a nine-month low of 5.6 percent in May and inflation showing no signs of easing, Finance Minister Pranab Mukherjee has invited top industry leaders for a meeting on August 1 to discuss ways to rejuvenate the economy. On the global front, most Asian stocks rose on Wednesday and the European markets extended the previous session's gains, boosted by encouraging corporate earnings and optimism over a U.S. credit deal. Concerns about a potential debt default by the U.S. government eased after President Barack Obama indicated that "some progress" has been made in the negotiations to raise the debt limit. Positive U.S. housing sector data also allayed investor concerns over weakening economic outlook. Crude oil futures were last trading up over a percent above $98 a barrel while the dollar weakened against the euro for a second day ahead of Thursday's crunch meeting in Brussels. | ||||||||||||||||
Forex Top Story | ||||||||||||||||
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Crude oil futures are rising $1.17 to $98.67 a barrel after advancing $1.57 to $97.50 a barrel on Tuesday. The API private sector oil inventory report released on Tuesday after the markets closed showed that crude oil inventories fell by 5.2 million barrels in the week ended July 15th. Meanwhile, gasoline and distillate inventories were reported to have increased. An ounce of gold is currently fetching $1,586, down 15.10 from the previous session’s close of $1601.10 an ounce. In the previous session, the precious metal slid $1.30. On the currency front, the U.S. dollar is trading at 78.8935 yen compared to the 79.18 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.4213 compared to yesterday’s $1.4156. U.S. Economic Reports The National Association of Realtors is scheduled to release its report on existing home sales for June at 10 am ET. Economists estimate existing home sales of 4.90 million for the month. Existing home sales fell to a seasonally adjusted annual rate of 4.81 million units in May from a downwardly revised reading of 5 million for April. Both single and condominium/co-ops sales declined. Inventories measured in terms of months of supply rose to 9.3 months in May from 9 months in April, while in terms of absolute numbers, inventories fell by 39,000. Distressed sales accounted for 31 percent of sales in May compared to 37 percent in April, while the median price of an existing home fell 4.6 percent month-over-month. The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended July 15th at 10:30 am ET. Crude oil inventories fell 3.1 million barrels to 355.5 million barrels in the week ended July 8th. Despite the drop, inventories remained above the upper limit of the average range. Gasoline stockpiles fell by 0.8 million barrels, remaining in the lower limit of the average range, while distillate inventories rose by 3 million barrels and remained above the upper limit of the average range. Refinery capacity utilization averaged 88.4 percent over the four weeks ended July 8th compared to 88 percent over the previous four weeks.
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