Financial Markets Trading Review
The regular trading review of the main 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 May 2013
UK Trading Review
FTSE 100 futures are trading 10.9 points lower.
Thomas Cook is expected to unveil plans to raise about £400 million through a share placing and rights issue to reduce its £1.5 billion of debts and to underline the transformation in the company's fortunes during the last 12 months.
RSA Insurance Group's biggest shareholder, Standard Life Investments, publicly rebuked directors of the insurer, criticising allegedly close ties with the firms that scrutinise the company's accounts as well as their decision to cut its dividend by a third.
For more UK market updates throughout the day see our Daily FTSE News
European Trading Review
German DAX Xetra 30 futures are trading 9.5 points down, while French CAC-40 futures are trading 3.9 points lower.
Deutsche EuroShop AG has reported that its revenue increased 10.0% to €42.4 million in the first quarter of 2013 from €38.6 million in the same period last year. The company has raised its forecast for 2013 and expects revenue between €186.0 million and €189.0 million.
BNP Paribas would unveil today the brand and model of its new online bank simultaneously in France, Belgium, Italy and Germany.
For more updates throughout the day see our Daily Stock Market News
US Trading Review
DJIA futures are trading 10.0 points lower.
Yesterday, DJIA rose 0.4%, to settle at 15,275.7. NASDAQ advanced 0.3% to close at 3,471.6. S&P 500 gained 0.5% to end at 1,658.8.
US markets ended higher yesterday, as data indicating a contraction in US industrial production fuelled speculation that the US Federal Reserve would not scale back its stimulus measures in the near future.
Macy's jumped 2.5%, after it reported first-quarter profit that beat market estimates and increased its share buyback program by $1.5 billion.
Overhill Farms surged 13.8%, following reports that Bellisio Foods has agreed to acquire the company for about $81 million in cash.
Bristol-Myers Squibb advanced 5.1%, ahead of the release of clinical trial results for an experimental cancer drug, nivolumab. Financials, American Express, Bank of America and JPMorgan Chase added between 0.7% and 1.8%, as risk appetite among investors improved.
After the closing bell, Cisco Systems added 8.8%, after it reported quarterly earnings that topped analysts' forecasts.
Tesla Motors jumped 8.4%, after it announced plans to sell stock and convertible notes to repay debt and for corporate purposes.
For more US market updates throughout the day see our Daily US Market News
Forex Trading Review
The GBP is trading 0.1% lower against the USD at $1.5228, flat against the EUR at €1.1829, and 0.2% down against the JPY at ¥155.51.
The EUR is trading 0.1% lower against the USD at $1.2873 and 0.2% lower against the JPY at ¥131.48. The declines come ahead of a report which is expected to show that the Eurozone annual inflation rate dropped to 1.2% in April from 1.7% in March.
Investors also await the release of trade data from Italy and the Eurozone to get further direction.
The JPY is trading higher against the USD, even after data showed that the nation's investors were net buyers of foreign bonds during the week ended May 10. A separate report indicated that Japan's economy expanded 0.9% in the first quarter, compared with the forecast for a 0.7% increase.
Yesterday, the USD traded higher against most of its major counterpart, despite dismal US economic data.
The EUR traded lower against the USD, as first-quarter economic growth data from France, Germany and the Eurozone missed market expectations.
The GBP strengthened against the EUR, after the Bank of England's quarterly Inflation report predicted that growth might quicken to 0.5% this quarter from 0.3% during the previous three months. The GBP also rallied, after a report showed that UK jobless claims declined in April.
The AUD traded lower against the USD, after the nation's Government forecast a wider-than-anticipated budget deficit of $19.4 billion for its current fiscal year.
For more updates throughout the day see our Daily Forex News
Commodities Trading Review
Crude Oil Update
In Asia, crude oil for June delivery is trading 0.2% or $0.18 lower at $94.12 per barrel.
Yesterday, crude oil for June delivery rose 0.1% or $0.09 to $94.30 per barrel, after the EIA reported that US crude inventories declined unexpectedly by 624,000 barrels to 394.9 million barrels for the week ended May 10.
However, crude oil prices dropped earlier in the session, as investors grew worried about energy demand prospects, following disappointing macroeconomic data from the US and the Eurozone.
Metal Trading UpdateGold for immediate delivery is trading marginally lower, at $1,396.42 per ounce.
Gold for June delivery declined 2.0% or $28.30 to close at $1,396.20 per ounce yesterday, as the dollar advanced against the major currencies, decreasing demand for the precious metal as a hedge against inflation.
Gold prices also dropped, as a continued bullish trend in the US equity markets forced investors to dump the yellow metal as a safe haven asset.
Yesterday, copper 3-month futures declined 1.1% or $80.5, to end at $7,145.00 /MT. Aluminium 3-month futures ended 0.3% or $5.0 higher at $1,775.00 /MT.
For more updates throughout the day see our Daily Commodities News
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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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 16-May-13
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