Indices Spread Betting Markets Rise on Second Greek Bailout Optimism
The regular trading review of the main UK, 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 - 21 February 2012
UK Trading Review
UK markets finished higher yesterday, led by gains in mining sector stocks, after People's Bank of China cut the reserve ratio requirement for large banks and amid continued optimism over the Greek bailout deal.
Chipmaker, CSR rallied 20.8%, following reports that it would buy back as much as $50 million of its shares.
Cove Energy rallied 5.2%, amid speculation that India’s ONGC and GAIL would bid for the company.
Miners, Antofagasta, Rio Tinto and BHP Billiton surged between 2.2% and 2.7%, amid expectations of higher demand for base metal from China.
Oil producers, BP and BG Group advanced 2.1% and 1.8%, respectively, tracking the rise in crude oil prices.
Financial sector stocks, Royal Bank of Scotland and Lloyds Banking jumped 3.2% and 2.5%, respectively, as risk aversion decreased among investors.
Cable & Wireless Worldwide gained 2.5%, after the Sunday Times reported that Vodafone Group might have to offer at least £1 billion for acquiring the company.
FTSE 100 advanced 0.7%, to close at 5,945.3, while FTSE 250 edged up 1.0%, to settle at 11,420.2.
European Trading Review
European markets rallied yesterday, amid optimism that the Eurozone finance ministers would agree on terms to release the second international rescue package for Greece and as China lowered its bank reserve requirements to spur lending.
Banking stocks, Deutsche Bank and Commerzbank, gained 2.3% and 2.9%, respectively, amid optimism over the Greek bailout deal.
Siemens added 1.1%, after the company sold a blocking stake in OAO Power Machines to Russian billionaire, Alexey Mordashov’s, turbine producer firm.
Bayer advanced 2.0%, after the company reported a progress in the testing of its treatment for macular edema.
TNT Express, surged 60.0%, after the company rejected a $6.43 billion takeover offer from UPS.
BASF rose 2.7%, ahead of its full year 2011 results this week.
FTSEurofirst 300 index added 0.7% to close at 1,091.0. German DAX Xetra 30 rose 1.5% to close at 6,948.3. French CAC-40 climbed 1.0% to end at 3,472.5.
US Trading Review
US markets were closed yesterday on account of the Presidents Day holiday.
Forex Trading Review
At 0400 BST today, the GBP is trading 0.1% higher against the USD at $1.5838, 0.3% lower against the EUR at €1.1946, and 0.1% higher against the JPY at ¥126.16.
The EUR is trading 0.4% higher against the USD at $1.3257.
The EUR is trading 0.4% higher against the JPY at ¥105.58.
The EUR is trading higher against most of its major peers, following report that European Finance ministers and other top officials have agreed to the terms of second international bailout package for Greece.
The AUD is trading lower against the USD, after the Australian Reserve Bank’s minutes of its 7 February meeting showed that the central bank might further ease its monetary policy.
Yesterday, the EUR closed higher against the USD and the JPY, after Germany’s finance minister highlighted that an accord would be reached in next meeting in Brussels and after China’s central bank lowered reserve requirements for its lenders, spurring demand for riskier assets.
The GBP closed flat against the USD. An industry report showed that UK home prices rose at the sharpest pace in almost 10 years in February.
The GBP ended higher against the JPY, amid speculation that minutes of the UK central bank’s February meeting, due to be released, would show a decline in support for additional asset purchases.
The JPY closed lower against the USD, after Japan posted its largest ever monthly trade deficit in January.
Commodities Trading Review
In Asia, crude oil for March delivery is trading 2.5% or $2.58 higher at $104.89 per barrel.
Yesterday, crude oil futures for March delivery rose $2.20 or 2.4% to end at $105.44 per barrel in electronic trading. This came amid supply concerns, after Iran halted crude oil exports to France and Britain, and threatened to extend an embargo to other European nations.
Floor trading in crude oil futures was closed yesterday on account of the Presidents Day holiday.
Gold for immediate delivery is trading 0.1% higher today, at $1735.76 per ounce.
Gold futures for April delivery climbed 0.6% or $10.10 to end at $1,736 per ounce yesterday. This came as the dollar weakened against the euro, amid hopes that European finance ministers would release the additional bailout package for Greece to stem the country’s debt crisis, spurring demand for the precious metal as a hedge against inflation.
Floor trading in gold futures was closed yesterday on account of Presidents Day holiday.
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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'Indices Spread Betting Markets Rise on Second Greek Bailout Optimism' edited by ETX Capital, updated 21-Feb-12
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