UK markets closed lower yesterday, amid political uncertainty in Italy and Greece.
Weir Group fell 3.7%, after analysts indicated that its order book has been priced in and unchanged revenue guidance might disappoint investors.
International Consolidated Airlines Group led the fallers on the FTSE 100 index, tumbling 4.5%, after Investec downgraded the stock to “Sell” from “Hold”.
Among banking stocks, Lloyds Banking Group declined 3.1%, while Barclays and Royal Bank of Scotland lost 2.3% and 3.6%, respectively, amid renewed Eurozone worries.
Insurers, Prudential, Legal & General and Aviva slipped between 0.4% and 2.0%, as falling equity markets raised concerns about their portfolios.
Smith & Nephew retreated 1.6%, after Credit Suisse slashed its ratings on the stock to “Neutral” from “Outperform”.
Essar Energy lost 1.8%, after revealing worse-than-expected trading update.
FTSE 100 edged down 0.3% to 5,510.8. FTSE 250 shed 0.8% to settle at 10,302.2.
European Trading Review
European markets closed in the negative territory yesterday, as investors remained concerned about Italy’s ability to meet its debt obligations. This came following reports that Italian Prime Minister, Berlusconi might resign before a budget vote in Parliament this week.
Retailers, Metro, Hennes & Mauritz and Carrefour, declined between 1.1% and 2.6%, after European retail sales fell more-than-expected in September.
Carrefour also lost value after Citigroup downgraded the stock to “Sell” from “Neutral”. Telecommunications-equipment major.
Alcatel-Lucent, plummeted 7.7%, after Standard & Poor’s Equity Research cut its recommendations on the stock to “Sell” from “Hold”.
Postal operator, PostNL, tumbled 7.4%, after its third-quarter operating profit fell 22.0%.
Metal-cutting tools maker, Sandvik, fell 3.2%, after it offered kr 6.19 billion to buy the shares of its subsidiary, Seco Tools.
FTSEurofirst 300 index declined 0.6% to 974.7. German DAX Xetra 30 eased 0.6% to 5,928.7. French CAC-40 fell 0.6% to 3,103.6.
US Trading Review
US markets closed slightly higher on Monday, recouping from early losses, after European Central Bank policymaker, Juergen Stark, predicted that the Eurozone crisis would be over within two years.
Drug maker, Amgen, the top riser on the S&P 500 index, surged 5.9%, after it offered to repurchase 10.0% of its outstanding shares, worth $5 billion.
Securities and investment banking group, Jefferies advanced 1.4%, following a reduction in its gross holdings of sovereign securities of Portugal, Italy, Ireland, Greece and Spain by almost 50.0%.
Dish Network gained 5.0%, after it announced a special dividend, as its third-quarter earnings rose 30%.
Pharmasset soared 4.9%, after reporting strong cure rates for its hepatitis-C treatment.
General Motors rose 1.7%, after it reiterated plans to double its annual sales to 5 million vehicles in China by 2015.
DJIA added 0.7% to close at 12,068.4. NASDAQ edged up 0.3% to settle at 2,695.3. S&P 500 gained 0.6% to end at 1,261.1.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.6043, 0.1% lower against the EUR at €1.1666, and 0.2% lower against the JPY at ¥125.18.
The EUR is trading 0.1% lower against the USD at $1.3752.
The EUR is trading 0.1% lower against the JPY at ¥107.30.
The USD and JPY are trading higher against the GBP and the EUR. This comes ahead of Italian Prime Minister Silvio Berlusconi facing a budget vote, and amid concerns that Italy would struggle to manage its debt, increasing demand for safer assets.
The AUD/USD is trading lower after Australia’s trade surplus came in lower-than-expected.
Yesterday, the GPB ended higher against the EUR, amid speculation that European policymakers would fail to prevent the spread of the sovereign-debt crisis.
The CAD rose against all of its major peers, as the nation’s largest export, crude oil prices touched the highest level in three months.
The CHF fell against the EUR, amid speculation that the Swiss National Bank would weaken its currency.
Commodities Trading Review
In Asia, crude oil for December delivery is trading marginally lower at $95.46 per barrel.
Yesterday, crude oil for December delivery advanced 1.3% or $1.26 to settle at $95.52 per barrel, after a report showed that crude oil production in Saudi Arabia had dropped by 140,000 barrels per day in October.
Gold for immediate delivery is trading 0.2% lower today, at $1,790.80 per ounce.
Gold for December delivery added 2.0% or $35 to end at $1,791.10 per ounce yesterday. This came after Germany denied use of its gold reserves to help increase the region’s rescue fund.
Gold traded higher as lingering concerns about Europe’s debt crisis spurred purchase of the precious metal as an alternative investment.
Financial Trading News
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'Crude Oil Spread Betting Market Rises on Falling Saudi Production' edited by ETX Capital, updated 08-Nov-11
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