UK markets finished higher yesterday, amid reports that Bank of England's Monetary Policy Committee added a further £50 billion to its quantitative easing program and Greek political leaders agreed to a deal on austerity measures. Additionally, data showed that UK manufacturing production increased better-than-expected in December.
Oil producers, AMEC, Petrofac, Tullow Oil, and Cairn Energy closed higher between 1.3% and 3.6%, tracking the rise in crude oil prices.
BG Group climbed 3.2%, after the company reported a 43.0% increase in its fourth-quarter profit.
Reckitt Benckiser gained 1.0%, following a surge in its fourth quarter profits.
GlaxoSmithKline rose 1.2%, after the company stated that it would selectively choose European countries to introduce new products.
SABMiller edged up 0.9%, after it announced that it would invest $80 million in its new brewery.
FTSE 100 advanced 0.3%, to close at 5,895.5, while FTSE 250 edged up 0.7%, to settle at 11,234.6.
European Trading Review
European markets closed in the positive territory yesterday, after Greek political leaders agreed on austerity measures to cut the country’s debt and ECB left its benchmark interest rate at a record low. Additionally, better-than-expected US jobless claims data buoyed market sentiment.
Carmakers, Daimler, Volkswagen and Peugeot, gained between 1.4% and 4.6%, after Daimler reported a 57% rise in its fourth-quarter earnings.
Banking stock, KBC Group, soared 8.2%, after the company announced that it had reduced its exposure to Southern European government bonds and sold its Polish insurance unit at an attractive price.
Chemical maker, Arkema rose 4.3%, after Morgan Stanley upgraded the stock to “Overweight” from “Equal weight”.
FTSEurofirst 300 index added 0.3% to 1,073.5. German DAX Xetra 30 gained 0.6% at 6,788.8. French CAC-40 rose 0.4% to 3,424.7.
US Trading Review
US markets closed higher yesterday, as better-than-expected weekly jobs data, upbeat corporate earnings and reports that Greek political leaders had reached an agreement on austerity measures, buoyed market sentiment.
Cigarette maker, Lorillard jumped 9.7%, following better-than-expected fourth-quarter earnings and as it raised its quarterly dividend.
Visa added 3.8%, after the company posted first quarter earnings which surpassed market expectations and revealed plans to focus on overseas markets.
Apple gained 3.5%, amid speculation that the company would launch iPad 3 tablet in early March.
United Technologies jumped 2.5%, amid speculation that the company is considering the sale of its pump and compressor-making division.
PepsiCo fell 3.7%, after it announced that it would cut jobs and increase marketing spending for its brands.
DJIA edged up 0.1%, to 12,890.5. NASDAQ rose 0.4%, to end at 2,927.2. S&P 500 gained 0.1%, to 1,352.0.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5795, flat against the EUR at €1.1910, and 0.2% lower against the JPY at ¥122.58.
The EUR is trading 0.1% lower against the USD at $1.3262, after international lenders asked Greece Prime Minister for the Parliamentary approval of the austerity measures and economic reforms, ahead of sanction of additional bailout package.
The EUR is trading 0.2% lower against the JPY at ¥102.94.
The JPY is trading higher against most of the major peers. This came amid speculation that the Bank of Japan would avoid further monetary easing next week, following signs of strength in the global economy and boost in reconstruction work after March 2011 earthquake.
The AUD is trading lower against the USD, amid expectations of further quantitative easing, after the Reserve Bank of Australia lowered its forecasts for growth and inflation for 2012 in its quarterly monetary policy statement.
Yesterday, the EUR ended higher against the USD and the GBP, after Greek political leaders announced that they had agreed on austerity measures to obtain the second international bailout aid to stem the spread of the Greek debt crisis.
The GBP closed higher against the USD, after the bond-purchase program announced by the Bank of England was less-than-market expectations.
Commodities Trading Review
In Asia, crude oil for March delivery is trading 0.4% or $0.37 down at $99.47 per barrel.
Yesterday, crude oil for March delivery added 1.1% or $1.13 to end at $99.84 per barrel. This came as concerns about future energy demand eased, after data showed a drop in US jobless claims for the week ended February 4. In addition, Greek political leaders agreed to new austerity measures, easing concerns about the Eurozone crisis.
Gold for immediate delivery is trading marginally higher today, at $1731.02 per ounce.
Gold for April delivery added 0.6% or $9.90 to end at $1,741.20 per ounce yesterday. This came as the dollar weakened against the euro, after Greece reached an accord on austerity measures.
Financial Trading News
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'European Shares Trading: Carmakers Gain on Positive Daimler Results' edited by ETX Capital, updated 10-Feb-12
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