UK markets finished lower yesterday, amid concerns that Greek lawmakers would fail to negotiate an agreement on a new round of austerity measures.
BHP Billiton dropped 2.3%, after it announced that its first-half profit had dropped 5.5% as a result of rising costs, production disruptions and drop in commodity prices.
Centrica fell 2.7%, after Malaysia’s Petroliam Nasional initiated sale of its entire stake in the company.
International Power slipped 2.8%, after the company stated that its 2012 sales growth would be affected by “contracts rolling off” in North America.
BP fell 0.7%, after Societe Generale downgraded its rating on the stock to “Hold” from “Buy”.
AMEC, Tullow Oil and Royal Dutch Shell gained between 0.2% and 2.3%, tracking a rise in crude oil prices.
Reckitt Benckiser rose 2.9%, after it stated that its sales growth in 2012 would outpace the industry.
FTSE 100 shed 0.2%, to close at 5,875.9, while FTSE 250 edged down 0.3%, to settle at 11,161.9.
European Trading Review
European markets slid yesterday, as investors fretted over the lack of final draft on the Greek bailout package, as Greek Prime Minister, Lucas Papademos, continued to seek political support for the austerity measures.
Exporters, Infineon Technologies and Adidas, both dropped 1.5%, as German exports data fell short of market expectations.
Wind-turbine maker, Vestas, plummeted 14.0%, after it reported full-year loss of €166 million in 2011.
Telecommunications stock, Mobistar, slumped 9.0%, after the company forecasted a further decline in its earnings in 2012.
Luxury goods stocks, Salvatore Ferragamo and LVMH, fell 2.8% and 1.3%, respectively, as the sector continued its poor performance from the previous session.
Losses for European indices were restricted by gains in banking sector stocks.
FTSEurofirst 300 index declined 0.2% to close at 1,070.8. German DAX Xetra 30 eased 0.1% to end at 6,748.8. French CAC-40 dropped marginally to 3,410.0.
US Trading Review
US markets closed higher yesterday, amid reports that Greece had drafted a new financing deal with the European Union and International Monetary Fund.
Casino operator, Caesars Entertainment, rallied 71.0%, on the first day of trading after its IPO.
Guidance Software surged 34.2%, as a broker upgraded its recommendation on the stock to “Buy” from “Hold”.
Avid Technology rallied 19.1%, following better-than-estimated fourth-quarter profit.
Buffalo Wild Wings gained 17.1%, as it announced fourth-quarter earnings which surpassed market expectations.
Rambus and NVIDIA added 9.1% and 3.6%, respectively, amid reports that the latter had signed a patent license agreement with the former.
Medical equipment maker, Alere, jumped 8.7%, after it reported fourth-quarter earnings and sales much ahead of market expectations.
DJIA edged up marginally, to settle at 12,884.0. NASDAQ rose 0.4%, to 2,915.9. S&P 500 gained 0.2%, to 1,350.0.
Forex Trading Review
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5809, 0.1% lower against the EUR at €1.1927, and 0.1% higher against the JPY at ¥121.95.
The EUR is trading 0.1% higher against the USD at $1.3253.
The EUR is trading higher against the USD and the JPY, ahead of the European finance ministers’ emergency meeting with IMF Managing Director, Christine Lagarde. This comes as Greek Prime Minister Lucas Papademos discusses with the European and International Monetary Fund officials to resolve a dispute over pension cuts.
The GBP is trading lower against the USD and the EUR, ahead of a monetary policy meeting between Bank of England and the European Central Bank, amid speculation that Bank of England would further increase its asset-purchase program.
The JPY is trading lower against the USD after data showed that Japan’s core machinery orders fell more-than-expected in the final quarter on YoY basis.
Yesterday, the EUR closed flat against the USD and higher against the JPY. This came on news that a draft of the latest agreement between Greece and its international lenders highlighted massive job cuts, a lower minimum wage and other fiscal reforms that Greece would require to secure the bailout aid.
Commodities Trading Review
In Asia, crude oil for March delivery is trading marginally higher at $98.76 per barrel.
Yesterday, crude oil for March delivery rose 0.3% or 30 cents to settle at $98.71 per barrel. This came after the Energy Information Administration reported a lower-than-expected increase in US crude oil inventories. Additionally, a fall in the dollar against the euro also supported crude oil prices.
Gold for immediate delivery is trading flat today, at $1,732.40 per ounce.
Gold for April delivery fell 1.0% or $17.10 to settle at $1,731.30 per ounce yesterday. This came as the dollar rose against the major currencies, decreasing the demand for the precious metal as a hedge against inflation.
Financial Trading News
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'EUR / JPY Spreads Rise Ahead of Emergancy EU Finance Meeting' edited by ETX Capital, updated 09-Feb-12
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