UK financial spread betting markets extended their losses for the fifth straight day, closing lower on Friday, as worsening debt crisis in Europe and signs of a slowdown in China, weighed on market sentiment.
Broadcaster, ITV dropped 3.7%, as HSBC assigned an “Underweight” rating to the stock.
Lloyds Banking Group, the top decliner on the FTSE 100 index, dropped 6.2%, while Barclays and Royal Bank of Scotland retreated 3.2% and 5.1%, respectively, amid concerns over their exposure to Spain and the rest of Eurozone.
Miners, BHP Billiton, Anglo American, ENRC, Rio Tinto, Vedanta Resources and Xstrata dropped between 1.2% and 4.3%, after China’s State Information Centre forecasted a slowdown in the country’s economy for the second quarter.
Man Group declined 4.1%, after Standard & Poor's downgraded the stock to “Negative” from “Stable”, while Burberry Group slipped 4.2%, amid concerns over its Chinese exposure.
FTSE 100 shed 1.3% to settle at 5,267.6, while FTSE 250 tumbled 1.5% to close at 10,431.9.
European Trading Review
European markets slid on Friday, amid concerns that China’s economic growth might falter and Greece might leave the euro bloc, escalating the region’s debt crisis. BMW, Volkswagen and Porsche dropped between 2.0% and 2.4%, after China’s car dealerships reported a rise in inventory levels in the country, while Volvo lost 4.6%.
Exporters, LVMH and Pernod-Ricard fell 2.0% and 3.9%, respectively, amid concern that a slowdown in China’s economy would affect demand.
Industrial sector stocks, EADS, Man Se and Lafarge dropped between 0.7% and 3.3%, after their US peer, Caterpillar reported slowing growth in sales.
However, losses were limited by gains in banking sector stocks amid speculation of a European ban on short selling.
BNP Paribas and Societe Generale gained 2.9% and 2.3%, respectively.
FTSEurofirst 300 index declined 1.1% to 970.2.
German DAX Xetra 30 eased 0.6% to 6,271.2.
French CAC-40 closed 0.1% lower at 3,008.0.
US Trading Review
US markets ended lower on Friday, amid continued concerns about the European debt crisis and as Facebook’s debut on Wall Street failed to live up to investors expectations.
Design software maker, Autodesk tumbled 12.9%, as the firm forecasted lower earnings for the second quarter.
Nasdaq OMX group dropped 4.4%, following a technical snag in the debut of Facebook IPO.
Hewlett-Packard, the top laggard on the DJIA spread betting index, declined 2.7%, as it mulled to cut up to 30,000 jobs amid dwindling demand for personal computers.
JPMorgan lost 1.3%, following a report in The Wall Street Journal that the bank’s trading losses would total as much as $5 billion, surpassing initial estimate of $2 billion.
Internet firms, Groupon, Pandora Media and Zynga dropped between 6.7% and 13.4%.
DJIA shed 0.6% to 12,369.4.
NASDAQ tumbled 1.2% to 2,778.8.
S&P 500 slipped 0.7% to 1,295.2.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5829, marginally lower against the EUR at €1.2368, 0.2% higher against the JPY at ¥125.27.
The EUR is trading 0.1% higher against the USD at $1.2795.
The EUR is trading 0.3% higher against the JPY at ¥101.26.
The EUR is trading higher against most of its major peers, after the leaders of the G8 nations pledged to keep Greece in the Eurozone.
Earlier, the EUR was trading lower, amid speculation that a data due to be released would show consumer confidence in Eurozone dropped to a four-month low in May.
The JPY is trading lower against most of its major peers, ahead of BOJ officials’ two-day meeting, amid speculation that the central bank would add to stimulus measures this week to bolster the country’s economic growth.
On Friday, the EUR finished higher against the USD, on hopes that G-8 officials, at the weekend summit, might offer support to the European Union to prevent the exit of Greece from the euro bloc and spread of Eurozone debt crisis.
The JPY closed higher against the USD, after Japan’s government raised its economic assessment for the first time in nine months.
Commodities Trading Review
In Asia, crude oil for June delivery is trading 0.4% or $0.36 higher at $ 91.84 per barrel.
On Friday, crude oil for June delivery slid 1.2% or $1.08 to settle at $91.48 per barrel. This came amid worsening problems in Greece and Spain and concerns about a slowdown in China’s economic growth, decreased demand prospects for crude oil.
Crude oil also lost value, as investors were cautious ahead of the G8 summit and speculation that a US pipeline reversal might start this weekend.
Gold for immediate delivery is trading 0.2% higher today, at $1,596.66 per ounce.
Gold for June delivery rose 1.1% or $17 to $1,591.90 per ounce on Friday, as the US dollar dropped against the major currencies amid renewed hopes for further easing from the US Federal Reserve.
Financial Trading News
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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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Financial Trading Review - 18 May 2012
UK Trading Review
UK markets closed lower yesterday, as continued concerns about Greece and strength of the Spanish banking sector, weighed on investors’ sentiment.
Banks, Lloyds Banking Group, Royal Bank of Scotland and Barclays declined between 3.6% and 3.8%, amid continued concerns after the ECB recently halted lending to some Greek banks to limit its exposure.
Banking stocks were also weighed down on reports that Moody’s Investors Service would probably downgrade Spanish banks.
International Consolidated Airlines Group slumped 6.0%, on concerns that its biggest shareholder, Spain's Bankia might be forced to reduce its stake in the carrier.
Vedanta Resources lost 4.0%, as its full year profit missed market expectations.
Aviva slipped 4.7%, after the company reported lower-than-expected first quarter sales.
FTSE 100 shed 1.2% to close at 5,338.4, while FTSE 250 slid 0.8% to end at 10,592.9.
European Trading Review
European markets slid yesterday, led by losses in financial sector stocks, amid speculation that Moody’s Investors Service might downgrade Spanish banks and after the ECB stated that it would temporarily stop lending to some Greek banks to limit its risk.
Bankia tumbled 14.1%, amid report that depositors had withdrawn €1.0 billion in the past week.
Banco Santander and BBVA lost 1.7% and 2.8%, respectively, amid concerns over a possible credit downgrade.
Oil-field services company, SBM Offshore sank 5.0%, after Barclays trimmed its rating on the stock to “Underweight” from “Equal weight”.
ThyssenKrupp and ArcelorMittal declined 4.8% and 2.7%, respectively, on demand concerns and tracking the recent declines in base metal prices.
FTSEurofirst 300 index fell 1.2% to 981.4. German DAX Xetra 30 dropped 1.2% to 6,309.0.
French CAC-40 closed 1.2% lower at 3,012.0.
US Trading Review
US markets fell sharply yesterday, as a weak reading on manufacturing activity in the Philadelphia region and concerns about possible credit ratings downgrade for Spanish banks weighed on market sentiment.
Videogame retailer, GameStop tumbled 11.1%, as its first-quarter earnings fell 9.8%, while GT Advanced Technologies slumped 15.6%, as its fourth-quarter results fell short of market expectations.
JPMorgan dropped 4.3%, amid reports that the trading losses at the firm had surged in recent days, surpassing the bank’s initial estimates.
Specialty retailer, Limited Brands dropped 4.4%, as it reported a drop in its first-quarter profit.
Advance Auto Parts plunged 17.0%, as Deutsche Bank slashed its rating to “Hold” from “Buy”. Caterpillar declined 4.4%, as it reported a slowdown in sales growth in April.
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5770, flat against the EUR at €1.2429, 0.1% lower against the JPY at ¥125.25.
The EUR is trading 0.1% lower against the USD at $1.2687. The EUR is trading 0.1% lower against the JPY at ¥100.76.
The EUR is trading lower against most of its major peers, amid concerns about the health of the Spanish banks, after Moody’s downgraded its ratings on 16 banks.
The EUR also fell as Spain’s borrowing costs increased at an auction yesterday.
The EUR is trading lower against the JPY, amid concern that Europe’s debt crisis is worsening after Fitch Ratings downgraded Greece’s long- term credit rating to “CCC” from “B”.
The JPY is trading higher against most of its major peers, as Asian stocks are trading lower amid speculation that the European sovereign debt crisis would deepen in the future.
The AUD and NZD are trading lower against the USD, as risk appetite waned among investors.
Yesterday, the JPY finished higher against the AUD and the NZD, as a rise in Spain’s borrowing costs increased fears that the European sovereign debt crisis would worsen, increasing demand for safe haven assets.
The USD closed higher against the EUR and the CAD, as demand for safe haven asset increased, after official data showed that Spain slipped into recession in the first-quarter.
This was further exacerbated by an index of manufacturing in the Philadelphia region in the US showed an unexpected decline.
Commodities Trading Review
In Asia, crude oil for June delivery is trading 0.1% or $0.06 higher at $92.62 per barrel.
Yesterday, crude oil for June delivery eased 0.3% or 25 cents to end at $92.56 per barrel.
This as disappointing regional manufacturing activity data from the US, ongoing worries about the Eurozone and reports that ECB had suspended lending to some Greek banks, pressured crude oil prices.
Crude oil prices had earlier rose on hopes that the reversal of the Seaway oil pipeline would ease a Midwest crude oil glut.
Gold for immediate delivery is trading 0.1% higher today, at $1,576.13 per ounce.
Gold for June delivery rose 2.5% or $38.30 to settle at $1,574.90 per ounce yesterday.
This came amid expectations of additional action from the US central bank following downbeat US economic data.
Minutes of the latest meeting of the Federal Open Market Committee, released late Wednesday had hinted at further possible quantitative easing by the Federal Reserve.
Also in gold spread betting, gold prices also rose amid bargain hunting from investors.
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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Financial Trading Review - 17 May 2012
UK Trading Review
UK spread betting markets closed lower yesterday, as concerns about Greece’s possible exit from the Euro-bloc and downbeat assessment of the British economy by the Bank of England overshadowed an unexpected fall in UK’s unemployment rate.
Miners, Fresnillo, Xstrata and Rio Tinto declined between 1.3% and 4.1%, as base metal prices slipped. A downgrade to “Neutral” from “Buy” at UBS, also weighed on Xstrata.
Glencore International declined 1.9%, as it traded ex-dividend. African Barrick Gold lost 5.6%, after it agreed to a higher royalty tax in Tanzania.
Supermarket operators slumped, with WM Morrison Supermarkets and J Sainsbury declining 1.7% and 3.7%, respectively, as they traded ex-dividend.
Oil and gas engineering firm, Lamprell plunged 56.9%, in the wake of a profit warning.
FTSE 100 shed 0.6% to settle at 5,405.3, while FTSE 250 edged down 0.4% to end at 10,675.3.
European Trading Review
European markets ended mostly lower yesterday, as escalating concern that Greece might be expelled from the euro bloc overshadowed better-than-expected French and German bond auctions.
National Bank of Greece slumped 13.5%, after the country’s central bank Chief, George Provopoulos, stated that Greeks had withdrawn about €700 million since the May 6 election.
Engineering & construction sector stocks, Eiffage, Hochtief and Vinci slumped between 1.5% and 8.0%, after data showed that US Architecture Billings Index fell into negative territory in April.
AP Moeller-Maersk sank 6.2%, after the company reported first-quarter net profit that was flat at $1.2 billion.
However, Credit Agricole rose 2.2%, after Societe Generale upgraded the stock to “Buy” from “Sell”. FTSEurofirst 300 index fell 0.5% to 992.8.
German DAX Xetra 30 declined 0.3% to 6,384.3.
French CAC-40 closed 0.3% higher at 3,048.7.
US Trading Review
US markets closed lower yesterday, as lingering worries over Greek crisis offset better-than-estimated reports on US housing starts and industrial production.
JC Penney, the top laggard on the S&P 500 index, plunged 19.7%, as it reported a wider-than-expected first-quarter loss, while Abercrombie & Fitch dropped 13.0%, after it posted a sharp drop in its first-quarter earnings.
Alcoa slipped 2.5%, in line with a drop in commodity prices.
Citigroup, Morgan Stanley, MetLife and Genworth Financial dropped between 3.1% and 7.1%, after the minutes of FOMC meeting indicated a lack of confidence among some members on their outlook for the US economy.
KLA-Tencor, Lam Research and Novellus dropped 5.0%, each, after JP Morgan downgraded the stocks to “Underweight” from “Neutral”.
DJIA edged down 0.3% to settle at 12,598.6.
NASDAQ shed 0.7% to end at 2,874.0. S&P 500 ticked down 0.4% to settle at 1,324.8.
Forex Trading Review
At 0400 BST today, the GBP is trading flat against the USD at $1.5921, marginally lower against the EUR at €1.2500, 0.1% lower against the JPY at ¥127.86.
The EUR is trading marginally higher against the USD at $1.2737. The EUR is trading marginally lower against the JPY at ¥102.30.
Elsewhere in forex trading, the JPY is trading lower against most of its major peers, amid speculation that the Bank of Japan might ease its monetary policy next week.
The EUR is trading lower against the JPY, amid concerns that Greece would exit the euro area as the country’s leaders prepare for a second election.
The USD is trading lower against the EUR, after minutes from the last US Federal Reserve meeting showed that some members supported further quantitative easing to boost the country’s economy.
The NZD and the AUD are trading higher against the USD amid mounting speculation that the US Federal Reserve would ease monetary policy further to stimulate growth.
The currencies also traded higher, amid speculation that the recent declines were excessive.
Yesterday, the EUR finished lower against the USD, after the European Central Bank announced that it would temporarily stop lending to some Greek banks, raising concerns about the European sovereign debt crisis.
The GBP closed lower against the EUR, after the Bank of England trimmed UK’s growth forecasts amid concerns over the possible negative impact of the Eurozone debt crisis on the UK economy.
Commodities Trading Review
In Asia, crude oil for June delivery is trading 0.4% or $0.39 higher at $93.20 per barrel.
Yesterday, crude oil for June delivery ended 1.2% or $1.17 lower at $92.81 per barrel.
This came amid continued concerns over the Greece crisis and as the US Energy Information Administration reported an increase in crude oil inventories by 2.1 million barrels per day, to 381.6 million barrels in the week ended 11 May.
However, declines were limited on better-than-expected data on US housing and industrial production.
Gold for immediate delivery is trading 0.2% higher today, at $1,546.07 per ounce.
Gold for June delivery lost 1.3% or $20.50 to $1,536.6 per ounce yesterday, as concerns about Greek crisis boosted the demand for the US dollar and decreased the metal's appeal as an alternative asset.
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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Financial Trading Review - 16 May 2012
UK Trading Review
UK stocks ended lower yesterday, dragging the FTSE 100 index to a five-month low.
This came as concerns that a Greece exit from the Eurozone would lead to renewed financial instability in Europe, overshadowed better-than-expected first-quarter reading on economic growth from Germany.
British Airways owner, IAG, the top laggard on the FTSE 100 index, declined 6.0%, after JPMorgan Chase lowered its stance on the stock to “Neutral” from “Overweight”.
Kazakhmys declined 4.1%, as UBS reiterated its “Sell” recommendation on the stock, while Anglo American, BHP Billiton and Rio Tinto declined between 1.6% and 2.9%.
Vedanta Resources fell 3.8%, ahead of the release of its earnings reports on Thursday.
Man Group shares spread betting market declined 3.8%, amid bearish comments from a broker.
Experian lost 2.9%, as Credit Suisse lowered its rating on the stock to “Neutral” from “Outperform”.
FTSE 100 slipped 0.5% to settle at 5,437.6, while FTSE 250 fell 0.8% to 10,722.5.
European Trading Review
European markets closed lower yesterday, as Greece called for fresh elections, after the nation’s political parties failed to form a new government shrugging off stronger-than-expected first quarter GDP growth figures from Germany.
Among financial sector stocks, UniCredit, Deutsche Bank and National Bank of Greece lost between 2.6% and 5.5% as risk aversion increased among investors.
Julius Baer Group sank 6.1%, as revenue from its assets under management fell in the first four months of the year.
Merck fell 2.8%, after the company reported a decline in its first-quarter profit.
FLSmidth slumped 8.4%, after the company’s first-quarter revenue trailed analyst estimates. Business website operator, Xing fell 3.9%, after HSBC downgraded the stock to “Underweight” from “Overweight”.
FTSEurofirst 300 index eased 0.7% to 997.7. German DAX Xetra 30 fell 0.8% to 6,401.1.
French CAC-40 closed 0.6% lower at 3,039.3.
US Trading Review
US markets closed lower yesterday, as worries about political uncertainty in Greece overshadowed positive US data on retail sales and regional manufacturing activity.
In US equities spread betting markets, Chesapeake Energy lost 5.6%, as it increased its bridge loan to $4 billion from $3 billion and as S&P slashed its credit rating by one notch.
Avon Products plunged 10.7%, after Coty withdrew its $10.7 billion takeover bid for the firm.
Home Depot slid 2.4%, as its revenue outlook trailed market expectations. Hewlett-Packard dropped 2.5%, after losing a legal row with the IRS.
Freeport-McMoRan Copper & Gold dropped 4.8%, tracking a drop in copper and gold prices.
Communication product maker, DynaVox slumped 26.5%, as it swung to a third quarter loss.
Patriot Coal slumped 18.4%, as it lowered its sales volume outlook for metallurgical coal for the rest of the year.
DJIA slid 0.5% to settle at 12,632.0.
NASDAQ edged down 0.3% to end at 2,893.8.
S&P 500 shed 0.6% to settle at 1,330.7.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5973, marginally higher against the EUR at €1.2549, flat against the JPY at ¥128.38.
The EUR is trading 0.1% lower against the USD at $1.2729. The EUR is trading marginally higher against the JPY at ¥102.30.
The GBP is trading lower against the USD, amid speculation that the Bank of England would cut its growth forecast for the UK economy and that the UK unemployment probably rose to match a 16-year high in the first quarter.
The EUR is trading lower against its counterparts before Greek leaders seek agreement today on an interim government that would schedule new elections and investor concern over Spain’s ability to reduce its budget shortfall.
Spain is scheduled to sell debt due in 2015 and 2016 tomorrow.
Also in FX Spread betting, the USD is trading higher against the EUR, before the Federal Reserve releases minutes of its April meeting.
The JPY is trading lower against most of its major peers after data showed that Japan’s machinery orders fell in March.
The NZD dropped against the USD, after Fonterra Cooperative Group, the world’s largest dairy exporter, stated that whole-milk powder prices continued their slide.
Yesterday, the EUR finished lower against the USD, after Greece announced that the country would hold elections again, raising fears that the European sovereign crisis might spread to other Eurozone nations.
The GBP closed higher against the EUR, as investors preferred the relative safety of the British currency amid the Eurozone turmoil.
Commodities Trading Review
In Asia, crude oil for June delivery is trading 1.3% or $1.22 lower at $92.76 per barrel.
Yesterday, crude oil for June delivery fell 0.8% or 80 cents to settle at $93.98 per barrel. The came as investors remained wary over the prospects for oil demand amid continued political uncertainty in Greece and a mixed set of US economic data that pointed to slower growth.
Gold for immediate delivery is trading 0.4% lower today, at $1,537.26 per ounce.
Gold for June delivery, settled down 0.3% or $3.90 at end at $1,557.10 per ounce yesterday, as the dollar rose against the euro, decreasing the demand for the precious metal as an alternative investment.
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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Financial Trading Review - 15 May 2012
UK Trading Review
UK markets closed lower yesterday, as a political stalemate in Greece to form a coalition government weighed on market sentiment, raising concerns of a potential exit of Greece from the euro-bloc.
Barclays, Royal Bank of Scotland Group and Lloyds Banking Group dropped between 4.8% and 6.4%, as risk appetite waned amid rising concerns about the Eurozone debt crisis.
Vedanta Resources, BHP Billiton and Anglo American declined between 3.1% and 3.5%, as base metal prices declined amid concerns about a slowdown in China.
Elsewhere in UK share trading news, Lonmin dropped 5.2%, after the company posted an unexpected first-half loss.
BP, Royal Dutch Shell Group and BG Group fell between 2.5% and 3.5%, as crude oil prices eased following bearish comments from the Saudi Arabian oil minister.
Among other stocks, Moneysupermarket.com declined 8.1%, following bearish comments from a broker.
FTSE 100 dropped 2.0%, to end at 5,465.5, while FTSE 250 declined 1.8%, to end at 10,813.6.
European Trading Review
European markets closed sharply lower yesterday, as a rise in Spanish and Greek bond yields and an unexpected drop in Eurozone industrial production weighed on market sentiment.
Financial spread betting markets were also dragged lower on increased speculation that Greece could soon be ousted from the Eurozone leading to more turmoil in the region.
Infineon Technologies retreated 2.7%, after its chief executive officer, Peter Bauer, decided to step down.
ING slumped 6.0%, on news that European Union regulators would re-examine its bailout by the Dutch government.
Deutsche Bank, Commerzbank and BBVA fell between 2.7% and 4.1%, after Spain announced an increase in provisioning requirements for its banks.
ThyssenKrupp fell 3.8%, after Citigroup downgraded the stock to “Neutral” from “Buy”.
FTSEurofirst 300 index slid 1.8% to 1,004.2. German DAX Xetra 30 dropped 1.9% to 6,452.0. French CAC-40 finished 2.3% lower at 3,058.0.
US Trading Review
US markets finished lower yesterday, amid mounting speculation that Greece might exit from the Euro bloc, as the country’s political parties struggled to form a new government.
Among financial sector stocks, Morgan Stanley, Bank of America and Citigroup, lost between 2.7% and 4.4%, as risk appetite waned amid growing concerns about Europe’s debt crisis.
JPMorgan Chase dropped 3.2%, after the company announced that its chief investment officer, Ina Drew, would step down in response to the recent $2.3 billion trading loss reported by the company.
Symantec eased 1.4%, after Goldman Sachs trimmed its recommendation on the stock to “Sell” from “Neutral”.
Exxon Mobil, Southwestern Energy and Chevron fell between 0.7% and 1.4%, in line with a drop in crude oil prices. DJIA closed 1.0% lower at 12,695.4.
NASDAQ ended 1.1% lower at 2,902.6. S&P 500 finished 1.1% lower at 1,338.4.
Forex Trading Review
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.6093, flat against the EUR at €1.2546, marginally lower against the JPY at ¥128.54.
The EUR is trading marginally lower against the USD at $1.2827. The EUR is trading marginally lower against the JPY at ¥102.45.
The EUR is trading lower against most of its major peers, amid mounting concerns that Greece’s exit from the Eurozone is unavoidable, as the region’s finance ministers meet for a second day in Brussels.
The EUR dropped against the JPY, as Moody’s Investors Service cut the credit ratings of 26 Italian banks.
The USD is trading higher against the most of its major peers before the Federal Reserve releases minutes of its last board meeting.
The AUD is trading steady against the USD, before the Reserve Bank of Australia releases minutes of its last board meeting.
Yesterday, the EUR finished lower against the USD. This came after an inability of Greece to form a coalition government prompted European officials to weigh prospects of the country’s exit from the currency union and after data showed that industrial production in the Eurozone contracted in March.
The GBP ended higher against the EUR, as investors sought the relatively safe currency.
The CAD ended higher against the USD, amid speculation that US economic growth would outpace other regions, as Greece might fail to implement austerity measures and it might be first country to exit the euro.
Commodities Trading Review
In Asia, crude oil for June delivery is trading 0.38% or $0.36 lower at $94.42 per barrel.
Yesterday, crude oil for June delivery lost 1.4% or $1.35 to settle at $94.78 per barrel, amid speculation that Greece might exit the Eurozone. This comes after its inability to form a new government and on continued concerns about China's economic slowdown.
Crude oil prices were also weighed down on comments from Saudi Arabia’s oil minister, Ali al-Naimi.
Gold for immediate delivery is trading 0.3% lower today, at $1,554.5 per ounce.
Gold for June delivery lost 1.5% or $23 to settle at $1,561 per ounce yesterday, as the dollar rose against the euro.
This followed a rise in Spanish and Italian bond yields and as a political impasse in Greece raised the likelihood of fresh elections, decreasing the demand for the precious metal as an alternative investment.
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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Financial Trading Review - 14 May 2012
UK Trading Review
UK markets ended higher on Friday, recouping earlier losses, as better-than-expected US consumer sentiment data overshadowed political uncertainty in Greece and downbeat economic growth forecast for Eurozone by the European Commission.
Marks & Spencer, the top gainer on the FTSE 100 index, climbed 3.5%, while Debenhams jumped 5.0%, as Bank of America Merrill Lynch upgraded both the stocks to “Buy” from “Neutral”.
J Sainsbury rallied 1.9%, after Citigroup lifted its stance from “Sell” to “Neutral” and raised its target price.
Real estate developer, Hammerson advanced 3.2%, amid takeover speculations.
Severn Trent gained 3.1%, amid positive comments from Deutsche Bank.
Integrated energy company, Centrica rose 2.3%, as the company’s trading update was in line with market expectations.
FTSE 100 gained 0.6% to settle at 5,575.5, while FTSE 250 advanced 0.7% to close at 11,016.4.
European Trading Review
European markets closed mostly higher on Friday, as upbeat data on US consumer sentiment overshadowed concerns that Greece might fail to implement austerity measures amid a political impasse in the country.
BMW rose 2.1%, after the company announced that it would open more used-cars outlets in China.
Renault and Daimler gained 5.0% and 2.3%, respectively, as concerns about future demand eased.
Repsol soared 8.2%, after the company reported better-than-expected first-quarter results.
Deutsche Bank, National Bank of Greece and BNP Paribas lost between 1.3% and 5.7%, after Spain stated that it would force the country’s banks to increase provisions against losses on real-estate loans.
Financial sector stocks were also weighed down on reports that their US peer, JPMorgan Chase, had posted an unexpected $2.0 billion trading loss.
FTSEurofirst 300 index added 0.3% to 1,022.5. German DAX Xetra 30 rose 1.0% to 6,579.9. French CAC-40 finished marginally lower at 3,129.8.
US Trading Review
US markets closed lower on Friday, as a slump in banking sector stocks outweighed data that showed US consumer sentiment rose to a four-year high in May.
Chesapeake Energy plunged 13.8%, as the firm stated that it might face potential delays or change some of its planned asset sales in order to comply with the terms of its loans to creditors.
JP Morgan lost 9.3%, while Goldman Sachs, Morgan Stanley and Citigroup dropped between 3.9% and 4.2%, as JPMorgan Chase posted a surprise trading loss of at least $2 billion sustained from credit-derivatives trading.
AT&T and Verizon added 1.4% and 1.5%, respectively, after Credit Suisse raised its rating on both the stocks “Outperform” from “Neutral”.
DJIA edged down 0.3% to settle at 12,820.6. NASDAQ advanced marginally to end at 2,933.8. S&P 500 inched 0.3% lower to settle at 1,353.4.
Forex Trading Review
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.6063, 0.3% higher against the EUR at €1.2464, and 0.1% higher against the JPY at ¥128.53.
The EUR is trading 0.3% lower against the USD at $1.2884.
The EUR is trading 0.2% lower against the JPY at ¥103.10.
The EUR is trading lower against most of its major peers. This came as European policymakers begin to weigh the prospect of Greece withdrawing from the currency union ahead of Greek President, Karolos Papoulias’s meeting with party leaders today. The currency also traded lower, amid speculation that a report might show industrial production in Eurozone dropped in March.
The AUD depreciated against the USD, as Asian equity markets traded lower, decreasing the demand for high yielding assets.
On Friday, the GBP closed lower against the USD, after a report showed that UK consumer confidence dropped in April.
The CAD finished higher against the USD, on hopes that the Canada’s central bank might raise interest rates, after Statistics Canada reported that employment climbed better-than-expected in April.
The EUR ended lower against the USD, amid fears that Greece might be forced to withdraw from the euro bloc, as the country’s politicians struggled to form a government following inconclusive election.
The JPY and the USD closed higher against most of their major peers, as China’s industrial production and retail sales rose less-than-forecast, and after JPMorgan Chase reported a surprise $2.0 billion trading loss, spurring demand for safe haven assets.
Commodities Trading Review
In Asia, crude oil futures for June delivery is trading 0.7% or $0.70 lower at $95.43 per barrel.
On Friday, crude oil for June delivery fell 1.0% or 95 cents to settle at $96.13 per barrel. This came as lacklustre industrial output data from China, continued economic uncertainties in Eurozone and increase in OPEC supply, highlighted the bearish outlook for oil demand.
A monthly report on Friday by the International Energy Agency showed that global oil supplies rose to 91 million barrels a day in April, an increase of 600,000 barrels from the previous month.
Gold for immediate delivery is trading 0.2% higher today, at $1,581.88 per ounce.
Gold for June delivery shed 0.7% or $11.50 to settle at $1,584 per ounce on Friday. This came as the dollar rose against the major currencies, amid continued concerns about the Eurozone debt crisis and downbeat Chinese economic data. However, some losses were pared as the dollar lost its appeal as a safe haven after US consumer sentiment data rose to its highest level in more than 4 years.
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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Financial Trading Review - 11 May 2012
UK Trading Review
UK markets ended higher yesterday, with the FTSE 100 index snapping its three days of losses, as a drop in US initial jobless claims countered disappointing Chinese trade data.
Chip designer, ARM Holdings gained 4.1%, as a broker upgraded the stock from “Underperform” to “Market Perform”.
Oil services providers, AMEC and Petrofac rallied 2.0% and 2.8%, respectively, while oil producers BG Group, BP and Tullow Oil gained between 1.5% and 2.2%, after OPEC boosted its estimates on global oil demand.
Old Mutual climbed 4.0%, after reporting positive net client cash flows in the first quarter.
Also in UK share trading news, Polymetal International, the top gainer on the FTSE 100 index, rallied 6.4%, while Kazakhmys, ENRC and Vedanta Resources gained between 2.2% and 2.7%, amid speculation that China would take steps to boost its economic growth.
FTSE 100 edged up 0.3% to close at 5,544.0, while FTSE 250 gained 1.4% to settle at 10,943.4.
European Trading Review
European markets closed higher yesterday, as better-than-expected earnings from European firms and speculation that China would ease its monetary policy to boost the country’s growth, buoyed market sentiment.
KBC Groep soared 9.4%, after the company posted a smaller-than-estimated drop in its first-quarter profit, while UniCredit surged 6.8%, after the company reported a13% rise in its first-quarter profit.
Deutsche Telekom added 1.8%, after it reported earnings that exceeded analyst estimates. Solarworld rallied 13.6%, after its first-quarter EBIT surpassed market expectations.
Also in Repsol soared 8.2%, after the company’s first-quarter earnings came in better than market expectations.
Retailer, Hennes & Mauritz rose 0.9%, after UBS upgraded the stock to “Buy” from “Neutral”.
FTSEurofirst 300 index added 0.5% to 1,019.1.
German DAX Xetra 30 rose 0.7% to 6,518.0. French CAC-40 finished 0.4% higher at 3,130.2.
US Trading Review
US markets closed mostly higher yesterday, with the DJIA index snapping its six-session losing streak, as a drop in jobless claims and hopes for a political consensus in Greece to form a new government, allayed investors worries.
News Corp jumped 5.1%, as it reported a sharp rise in its third-quarter profit, while Monster Beverage surged 9.0%, as it reported higher-than-expected first-quarter revenue growth.
Big Lots gained 1.4%, after Barclays Capital raised its rating to “Overweight” from “Equal Weight”.
US Bancorp and Wells Fargo rallied 1.4% and 1.7%, respectively, following upbeat statements from Federal Reserve chief, Ben Bernanke.
However, Cisco fell 10.5%, as its sales outlook for the current quarter disappointed investors. Priceline.com fell 5.3%, as it offered a cautious outlook for its second quarter.
At 0400 BST today, the GBP is trading marginally lower against the USD at $1.6132, trading 0.1% higher against the EUR at €1.2479, and marginally lower against the JPY at ¥128.83.
The EUR is trading 0.1% lower against the USD at $1.2926. The EUR is trading 0.1% lower against the JPY at ¥103.23.
The EUR is trading lower against most of its major peers, ahead of the Italian, Spanish and French bond auctions next week.
The currency also traded lower ahead of the fifth day of talks as between Greek political leaders to form a government and amid speculation that an official report would show that Eurozone economy contracted for a second quarter.
Italy would sell securities on May 14 maturing in 2015, 2020, 2022 and 2025, followed by Spanish and French debt sales on May 17.
The JPY and the USD are trading higher against most of their major peers, as demand for safe haven assets increased amid mounting fear that Greece would be forced to exit from the Euro bloc, triggering a contagion throughout the region.
The CAD traded flat against the USD, amid speculation that a government report tomorrow would show employment growth in Canada is slowing.
Yesterday, the GBP closed lower against the USD, amid speculation that Bank of England might increase its asset-purchase program by at least £25 billion at a monetary policy meeting.
The EUR finished higher against the USD, amid speculation that Greece would restrict the debt crisis, after Europe’s bailout fund confirmed that aid to Greece had been received and officials reported progress forming a government.
Commodities Trading Review
In Asia, crude oil for June delivery is trading 1.2% or $1.12 lower at $95.96 per barrel.
Yesterday, crude oil for June delivery advanced 0.3% or 28 cents to end at $97.08 per barrel, as positive US jobless claims data offset disappointing trade data from China and a rise in OPEC oil production.
Crude oil prices were supported by reports that European officials had agreed to provide the next aid payment to Greece and news of interventions in Spain, easing some concerns about the Eurozone.
Gold for immediate delivery is trading 0.4% lower today, at $1,587.83 per ounce.
Gold for June delivery advanced 0.1% or $1.30 to end at $1,595.50 per ounce yesterday. This came as the dollar weakened against the euro following mixed economic data from the US, increasing demand for the yellow metal as a hedge against the inflation.
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.
ETX Capital >>
"With ETX Capital you get all the normal advantages of Spread Betting plus..." >> read
ETX Capital review.
Risk Warning: As a small percentage of the total contract value is required as deposit, your profit or loss can rapidly exceed that deposit. Seek advice if you don't fully understand the risks. Spread bets and CFDs carry high risk and are not suitable for everyone.
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.
'Financial Markets Trading Review' edited by ETX Capital, updated 21-May-12
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