European Shares Spread Betting: Deutsche Bank Receives LIBOR Subpoena
The regular trading review of the main UK, US and European markets, plus a quick look at the commodities and forex markets.
For today's report see Financial Trading Review.
Financial Trading Review - 16 August 2012
UK Trading Review
At 0500 BST today, FTSE 100 futures are trading 7.5 points higher.
Petrofac has won a contract from the International Association of Drilling Contractors (IADC) to enhance IADC's existing system of competence for the drilling
S&P has downgraded its rating on Aviva by one notch to “A-” from “A”, and its long-term counterparty credit and insurer financial strength ratings on all of the group's core operating subsidiaries by one notch to “A+” from “AA-”.
European Trading Review
At 0500 BST today, German DAX Xetra 30 futures are trading 15.5 points higher, while French CAC-40 futures are trading 10.6 points higher.
As part of the investigations regarding the LIBOR scandal, the Deutsche Bank and seven other major banks were subpoenaed by the New York Attorney General Eric Schneiderman.
Total Petrochemicals has put its 232,000-barrel-per-day Port Arthur refinery in Texas on hold after a contractor died due to injuries sustained in a construction accident.
US Trading Review
At 0500 BST today, DJIA futures are trading 19.0 points higher.
Yesterday, DJIA edged down 0.1% to close at 13,164.8. NASDAQ added 0.5% to settle at 3,030.9. S&P 500 ticked up 0.1% to end at 1,405.5.
A worse-than-expected contraction in New York area manufacturing activity fuelled hopes of additional monetary stimulus from the Federal Reserve and led the US markets to close mostly higher yesterday.
Target gained 1.8%, as it forecasted upbeat third-quarter and full-year earnings amid forecast-beating second quarter earnings.
Abercrombie & Fitch gained 9.0%, as it boosted its share repurchase plan and reported better-than-expected second-quarter earnings.
However, JPMorgan and UBS slipped 0.1% and 0.3%, respectively, after the office of New York State Attorney General issued subpoenas to them on Libor scandal.
Staples tumbled 15.0%, as it lowered its full-year outlook following weaker-than-expected quarterly results.
After the closing bell, Cisco added 5.4%, as its fourth-quarter earnings surpassed market expectations.
Applied Materials slipped 4.0%, as it issued a downbeat fourth-quarter earnings outlook.
Forex Trading Review
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.5675, slightly lower against the EUR at €1.2754, and 0.2% higher against the JPY at ¥124.09. This comes ahead of the release of UK retail sales data for July due later in the day.
The EUR is trading slightly higher against the USD at $1.2291. The EUR is trading 0.2% higher against the JPY at ¥97.30.
Elsewhere in forex spread betting, the USD is trading higher against the most of its major currencies, ahead of US housing data which is expected to show that new home construction remained near an almost four-year high and building permits increased in July.
Yesterday, the GBP closed higher against the EUR and the USD, after a report showed that the UK unemployment rate fell for a third consecutive month in June.
Minutes of the BoE’s policy meeting earlier this month indicated that the monetary policy committee unanimously backed the decision to keep the bank’s key lending rate at a record low 0.5% and to maintain the size of its asset-buying program.
The EUR ended lower against the USD and the GBP, on speculation that the Swiss National Bank sold the currency amid an increase in its foreign-exchange holdings to a record last month.
The USD ended higher against the EUR and the JPY, after data showed that US industrial production increased 0.6% in July.
The USD closed higher against the JPY, after the difference between the yield on the 10-year US benchmark and a similar maturity Japanese security widened to 100 basis points.
Commodities Trading Review
In Asia, crude oil for September delivery is trading 0.2% or $0.16 higher at $94.49 per barrel.
Yesterday, crude oil for September delivery gained 1.0% or $0.90 to $94.33 per barrel, after the Energy Information Administration reported a larger-than-expected decline of 3.7 million barrels in crude inventories for the week ended 10 August.
However, earlier in the session, oil prices traded lower, following dismal US manufacturing activity and consumer prices data, and as a higher dollar dampened the appeal for commodities as an alternative investment.
Gold for immediate delivery is trading marginally higher today, at $1,604.60 per ounce.
Gold for December delivery settled up 0.3% or $4.20 at $1,606.60 per ounce yesterday, as downbeat economic data in the US, renewed speculations about additional monetary easing by the US Federal Reserve.
However, gains were capped, as the dollar traded higher against the euro.
Also in commodities spread betting, yesterday saw copper 3-month futures dropped 0.4% or $29.0, to close at $7,391.00 /MT.
Aluminium 3-month futures fell 0.3% or $5.0, to close at $1,760.00 /MT. Copper futures declined yesterday amid concern China’s economic growth is slowing and on fading hopes of additional stimulus from the US Federal Reserve.
Financial Trading News
For more daily views, news and analysis of the markets also see:
The above comments do not constitute investment advice and neither ETX Capital nor Clean Financial accept any responsibility for any use that may be made of them. Any prices or data are indicative and subject to change without notice; its accuracy is not guaranteed and should not be relied on.
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Article provided / approved by ETX Capital which is the trading name of Monecor (London) Limited, company number 00851820. Monecor (London) Ltd is authorised and regulated by the Financial Services Authority, registration number 124721.
'European Shares Spread Betting: Deutsche Bank Receives LIBOR Subpoena' edited by ETX Capital, updated 16-Aug-12
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