UK markets finished lower on Friday, as investor fretted over reports that a deal for Greece’s bailout would not take place before the next week, after a Greek junior coalition party announced that it would vote against new austerity measures in the Parliamentary ratification.
Miners, Anglo American, Rio Tinto Group and Kazakhmys, declined between 1.1% and 4.5%, in line with a fall in base metal prices.
National Grid fell 1.2%, after JPMorgan Chase downgraded the stock to “Neutral” from “Overweight”.
Metal related stock, Ferrexpo sank 5.6%, after a broker downgraded the stock to “Hold”.
Insurer, Phoenix Group Holdings eased 1.5%, after it ended it stakeover discussions with CVC Capital Partners.
FTSE 100 declined 0.7%, to close at 5,852.4, while FTSE 250 edged down 0.6%, to settle at 11,167.6.
European Trading Review
European markets slid on Friday, as concerns about the Greek debt crisis resurfaced, after European leaders held back the second bailout package, as one of the main political party of Greece refused further spending cut demanded by them.
Banking stocks, BNP Paribas, Commerzbank and Deutsche Bank, lost between 4.0% and 5.2%, as risk appetite decreased among investors, in the absence of Greece’s second bailout package approval.
ThyssenKrupp lost 3.9%, after Nomura downgraded the stock to “Neutral”.
Airline stock, Lufthansa fell 3.4%, after Equinet Bank cut its recommendation on the stock to “Hold” from “Accumulate”.
Energy stock, Total, dropped 1.4 %, after the company announced that it would lower its net investments to $20 billion in 2012 down from $22billion in 2011.
FTSEurofirst 300 index fell 0.9% to 1,064.1. German DAX Xetra 30 eased 1.4% to 6,693.0. French CAC-40 fell 1.5% to end at 3,373.1.
US Trading Review
US markets closed lower on Friday, following report that showed US consumer confidence declined more-than-forecast in February, and amid lingering worries about the Greek debt crisis, after German Finance Minister, Wolfgang Schaeuble, announced that Greece was missing its deficit targets.
Financial stocks, Citigroup and Bank of America, lost 2.2% and 1.3%, respectively, as risk aversion increased among investors.
Apollo Global Management tumbled 6.1%, after the company reported that its fourth- quarter earnings fell 66.0%.
First Solar plummeted 10.4%, after permitting issues delayed a US loan guarantee for a power plant in California and as a broker downgraded its recommendation on the stock to “Neutral” from “Buy”.
Freeport-McMoRan Copper & Gold fell 3.2%, after data showed that copper shipments to China declined in January.
DJIA slipped 0.7% to 12,801.2. NASDAQ fell 0.8%, to 2,903.9. S&P 500 lost 0.7%, to 1,342.6.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.4% higher against the USD at $1.5792, 0.2% lower against the EUR at €1.1919, and 0.4% higher against the JPY at ¥122.55.
The EUR is trading 0.6% higher against the USD at $1.3248. The EUR is trading 0.6% higher against the JPY at ¥102.81.
The EUR is trading higher against the USD and the JPY, as Greek Prime Minister, Lucas Papademos, won approval from parliament for austerity measures to obtain a second bailout package, damping demand for safe haven asset.
The JPY is trading lower against most of its major peers, after a report showed that Japan’s GDP shrank an annualized 2.3% in the fourth-quarter of 2011.
The AUD is trading higher against the JPY and the USD, as demand for safe haven assets decreased after Greece passed austerity measures to secure a second international bailout package, and ahead of the release of a data that might show US retail sales and import prices rose in January.
On Friday, the USD closed higher against the EUR. This came after Eurozone finance ministers delayed approval of a second bailout package for Greece and called for Parliamentary approval of the final draft made by Prime Minister, Lucas Papademos, spurring demand for safe haven assets.
The GBP closed higher against the EUR after a UK report showed that producer prices in the country climbed at the fastest pace in nine months.
Commodities Trading Review
In Asia, crude oil for March delivery is trading 0.9% or $0.89 higher at $99.56 per barrel.
On Friday, crude oil for March delivery fell 1.2% or $1.17 to settle at $98.67 per barrel. This came after International Energy Agency trimmed its global energy demand forecast for 2012.
Crude oil gained value as the dollar gained against the euro, decreasing the demand for the commodities as an alternative investment.
Gold for immediate delivery is trading 0.4% higher today, at $1727.90 per ounce.
Gold for April delivery fell 0.9% or $15.90 to settle at $1,725.30 per ounce on Friday. This came as the dollar surged higher after optimism faded over a Greek austerity deal for additional bailout, decreasing the demand for the precious metal.
Financial Trading News
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'Gold Spread Betting Market Falls on Fading Optimism Over Greek Austerity Deal' edited by ETX Capital, updated 13-Feb-12
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