Financial Trading Review
The daily trading review of the key European and US markets as well as a quick review of the forex and commodities markets.
Financial Trading Review 17 May 2013
UK Trading Review
FTSE 100 futures are trading 4.5 points higher.
3i Group pledged more asset disposals this year and revealed that it would aim for £60 million in operating cost reductions by March 2014, up from £45 million planned initially.
FT reported that Marks and Spencer Chief Executive Marc Bolland may not receive the full payout of his bonus following a poor performance of the company.
For more UK market updates throughout the day see our Daily FTSE News
European Trading Review
German DAX Xetra 30 futures are trading 6.0 points up, while French CAC-40 futures are trading 2.2 points higher.
Fitch Ratings has affirmed Deutsche Bank AG's Long-term Issuer Default Rating (IDR) at “A+” with a Stable Outlook.
Air France-KLM CEO, Alexandre de Juniac announced that its regional subsidiary, CityJet, is in the process of being disposed.
For more updates throughout the day see our Daily Stock Market News
US Trading Review
DJIA futures are trading 21.0 points higher.
Yesterday, the DJIA fell 0.3%, to settle at 15,233.2. NASDAQ declined 0.2% to close at 3,465.2. S&P 500 ended 0.5% lower, at 1,650.5.
US markets ended lower yesterday, as investors exercised caution amid dismal economic reports in the US and after a Federal Reserve official hinted at slowing the pace of central bank stimulus as early as this summer.
PulteGroup and DR Horton declined 2.6% and 2.3%, respectively, after construction on new homes in the US dropped 16.5% in April to a seasonally adjusted annual rate of 853,000 units.
Wal-Mart Stores slid 1.7%, after it reported quarterly earnings that failed to match market expectations and offered a subdued forecast for the second quarter.
Peer, JC Penney declined 1.0%, after it reported that its first quarter loss widened to $348 million, compared with a year-earlier loss of $163 million.
Goldman Sachs downgraded chip maker, Advanced Micro Devices, down 12.6%, to “Sell” from “Neutral”.
After the closing bell, Autodesk declined 6.2%, after it reported a 30% fall in its fiscal first quarter earnings and slashed its fiscal year revenue growth and second-quarter earnings guidance.
Brocade Communications Systems declined 2.4%, even as it reported a 19% increase in its second quarter earnings.
For more US market updates throughout the day see our Daily US Market News
Forex Trading Review
The GBP is trading 0.2% lower against the USD at $1.5248, slightly lower against the EUR at €1.1855, and 0.1% down against the JPY at ¥155.92.
The EUR is trading 0.2% lower against the USD at $1.2862 and marginally lower against the JPY at ¥131.53, as investors await the release of construction output data from the Eurozone to get further direction.
The USD is trading 0.1% higher against the JPY at ¥102.27, amid speculation that the Fed minutes next week will reveal a hawkish tone following the comments from San Francisco Fed President John Williams.
Yesterday, the USD ended lower against its major counterparts, following weaker-than-forecast reports on US unemployment claims, housing and inflation.
However, the greenback managed to claw back some of its losses, after San Francisco Fed President John Williams stated that the central bank might taper quantitative easing, possibly as early as the summer. This is based on whether the economy grows in line with his forecasts.
The EUR fell against the GBP, as investors speculated that the ECB might extend its monetary stimulus measures to revive growth in the region. The EUR also fell, as data indicated that region's annual inflation rate declined to 1.2% in April from 1.7% in March.
The AUD slipped against majority of its 16 counterparts, amid rising concerns that a slowdown in global growth would hurt commodity prices.
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 $0.16 lower at $95.00 per barrel.
Yesterday, crude oil for June rose 0.9% or $0.86 to $95.16 per barrel, as a rise in US jobless claims and a benign inflation rate bolster prospects that the Fed would not wind down its stimulus measures too soon.
Oil prices also rose, as the dollar weakened against major peers, improving the demand for commodities as an alternative investment.
However, earlier, crude oil prices traded in the red, after the Philadelphia Federal Reserve stated its business conditions index sank to -5.2 from 1.3 in April, increasing worries about the future oil demand.
Metal Trading UpdateGold for immediate delivery is trading 0.4% lower, at $1,381.16 per ounce. Gold for June delivery shed 0.7% or $9.30 to close at $1,386.90 per ounce yesterday, as investors remained bearish on gold.
This came even after data showed that US consumer price inflation dropped more-than-expected in April and first time claims for US unemployment benefits rose more-than-anticipated during the week ended 11 May 2013.
The precious metal also came under pressure on news that Soros Fund Management LLC slashed its holding in the SPDR Gold Trust by 12% as of 31 March from the previous quarter.
Meanwhile, a World Gold Council report revealed that demand dropped 13% in the first quarter from a year earlier.
Yesterday, copper 3-month futures declined 0.3% or $19.5, to end at $7,125.50/MT. Aluminium 3-month futures ended 0.6% or $10.0 higher at $1,785.00/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 Trading Review' edited by ETX Capital, updated 17-May-13
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