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 22 May 2013
UK Trading Review
FTSE 100 futures are trading 1.2 points lower.
The Times newspaper reported that IMF is likely to urge the UK Treasury to quicken the disposal of its stakes in Royal Bank of Scotland and Lloyds Banking.
Sky News reported that Britvic's proposed merger with rival AG Barr may not happen following the former's intention to outline plans for tens of millions of pounds in annual cost savings.
For more UK market updates throughout the day see our Daily FTSE News
European Trading Review
German DAX Xetra 30 futures are trading 0.5 points lower, while French CAC-40 futures are trading 1.4 points higher.
Deutsche Telekom abandoned its plan to replace fixed-line connections in individual new-build areas with wireless connections.
EDF signed an exclusive deal worth €400 million with Energeticky a Pr?myslový Holding, for the sale of its 49% minority stake in Stredoslovenská Energetika.
For more updates throughout the day see our Daily Stock Market News
US Trading Review
DJIA futures are trading 1.0 point higher.
Yesterday, the DJIA closed 0.3% higher, to settle at 15,387.6. NASDAQ advanced 0.2% to close at 3,502.1. S&P 500 advanced 0.2% to end at 1,669.2.
US markets ended higher yesterday, following St. Louis Fed President Bullard's comment that the central bank should persist with its bond buying program to boost the economy.
However, gains were kept in check amid some caution among investors who awaited Fed Chairman, Ben Bernanke's testimony on the outlook for the US economy and FOMC's minutes of its 30 April -1 May meeting.
JPMorgan edged up 1.4%, after shareholders refused to split the Chairman and CEO responsibilities of Jamie Dimon.
Home Depot added 2.5%, after it reported first-quarter profit that beat analysts' estimates. Peer, Lowe's Cos rose 0.2%, ahead of the release of its quarterly results.
Clearwire Corp surged 4.3%, after Sprint Nextel upped its bid for the company with an aim to urge its shareholders to reject a proposal from Dish Network.
After the closing bell, Dycom Industries advanced 12.7%, after its fourth-quarter outlook topped consensus estimates, while AMAG Pharmaceuticals dipped 5.3%, on reports that its distributor has recalled a batch of ferumoxytol, its treatment for iron deficiency.
For more US market updates throughout the day see our Daily US Market News
Forex Trading Review
The GBP is trading marginally lower against the USD at $1.5157, 0.1% down against the EUR at €1.1727, and 0.1% higher against the JPY at ¥155.37. This comes as investors await the release of Bank of England's recent policy meeting minutes and UK's retail sales data, to get further direction.
The EUR is trading marginally higher against the USD at $1.2924 and 0.1% up against the JPY at ¥132.47, ahead of the release to Eurozone's current account data. Investors are also expected to keep a close eye on the European Council meeting beginning today in Brussels.
The USD is trading lower against the EUR, in anticipation that Ben Bernanke, in his testimony to the Joint Economic Committee before Congress, would indicate a dovish tone on the monetary stimulus measures. Investors also await the release of minutes from the FOMC's recent monetary policy meeting.
The AUD is trading lower against major peers, following reports that Australia's consumer confidence slumped by the most in 17 months.
Yesterday, the USD weakened against peers, after St. Louis Fed President James Bullard stated that the central bank should keep buying bonds. Also adding to the weakness were New York Fed President William Dudley’s claim that it had previously been overly optimistic about the nation's growth.
The GBP slipped against its major counterparts as data suggested less inflationary pressures in the economy.
For more updates throughout the day see our Daily Forex News
Commodities Trading Review
Crude Oil Update
In Asia, crude oil for July delivery is trading 0.5% or $0.49 lower at $95.69 per barrel. The weakness followed after a report from the American Petroleum Institute revealed that crude oil stockpiles increased by 532,000 barrels during the last week, contrary to expectations of a decline.
Crude oil also fell after China's oil inventories climbed for a second month.
Yesterday, crude oil for July delivery fell 0.8% or $0.75 to $96.18 per barrel, as the dollar's strength against a basket of major currencies, decreased the demand for the commodities as an alternative investment.
Crude oil for June delivery expired at $96.16 per barrel, 55 cents lower than the previous trading session.
Metal Trading UpdateGold for immediate delivery is trading 0.1% higher, at $1378.13 per ounce.
Gold for June delivery shed 0.5% or $6.50 to close at $1,377.60 per ounce yesterday, as investors await cues from minutes of the FOMC’s latest policy meeting on the central bank's future policy on its quantitative easing program.
Gold also dropped as the dollar rose against the major currencies, decreasing the demand for the precious metal as a hedge against inflation.
Yesterday, copper 3-month futures increased 1.6% or $113.0, to end at $7,410.00/MT. Aluminium 3-month futures ended 0.3% or $5.0 lower at $1,805.00/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 22-May-13
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