Forex Overnight: EUR trading lower against USD
The Euro has weakened against the USD, this morning, ahead of the Italian bill auction scheduled later today, consisting of €9.0 billion of 179-day bills and €2.5 billion of zero-coupon 2013 securities. Additionally, market expectations that Italian business confidence for December, scheduled to be released tomorrow, would show a drop to the lowest level in almost two years, also weighed on the EUR. At 6 am, the EUR has lost 0.1 percent against the USD to trade at $1.3063, while it has advanced marginally against the GBP to trade at £0.8342.
The JPY has climbed 0.2 percent against the EUR. Data released this morning showed weaker-than-expected industrial production and retail sales in Japan.
The AUD and the CAD are trading 0.1 percent and 0.2 percent lower against the USD, respectively.
UK Stocks: Expected to open in negative territory
The FTSE 100 is likely to open 1 to 2 points in the red.
No key economic and corporate releases are scheduled for today.
Reuters has reported that the Thai bank, Bank of Ayudhya, is likely to buy HSBC Holdings’ credit card and retail business in Thailand in a deal worth up to $1.28 billion.
A U.S. federal judge has ruled that BP had not violated the terms of its criminal probation after a 2009 oil spill in Alaska’s Prudhoe Bay, and released the company from probation.
In an interview to Interfax news agency, Eduard Khudainatov, the CEO of OAO Rosneft, has stated that BP is set to leave the Sakhalin-5 gas project, and Rosneft will continue working on it on an independent basis.
Cairn India, the subsidiary of Cairn Energy, has stated that it plans to start the second phase of exploration for oil and natural gas deposits in Sri Lanka’s offshore Mannar basin.
Asia: Trading weak
Asian markets are trading lower this morning.
In Japan, Tokyo Electric Power has declined sharply, after Japan’s Trade Minister stated that the company should consider temporary government control. Nitto Boseki has lost value, after it lowered its net income outlook for the full year. On the other hand, J Front Retailing has advanced, after it more than doubled its full year net income forecast. Steel sector stocks, Nippon Steel and Aichi Steel have recorded gains, following reports that China’s steel consumption may rise next year. At 6 am, the Nikkei 225 index has slid 0.2 percent to trade at 8,423.0.
In China, Aluminum Corporation of China Limited has edged lower, amid news that its parent company is likely to suffer from declining orders in the first half of 2012. China CNR Corporation and CSR Corporation have declined, amid news that the Chinese railway ministry may order fewer train cars in 2012. In South Korea, Shinhan Financial Group has declined, after a filing indicated that the company has decided on KRW 350.0 billion worth of total dividend payments. In Hong Kong, China Mengniu Dairy has tumbled, after a batch of milk was discovered with high levels of a potentially cancer-causing chemical.
US Stocks: Futures trading lower
At 6 am, S&P 500 futures are trading 3.6 points weaker.
MBA Mortgage Applications is the key economic indicator scheduled for release today.
Piedmont Natural Gas is scheduled to announce its results today.
Medicis Pharmaceutical slumped 8.9 percent in after hours trading session yesterday, after it lowered its revenue and earnings outlook for the fourth quarter. Cavium tumbled 5.9 percent, after it guided to weaker-than-expected revenue for the fourth quarter. Metalico, Solazyme and Rambus featured amongst other laggards, losing 4.4 percent, 3.3 percent, 2.7 percent, respectively. New York Times added 0.1 percent, after it stated that it will sell its regional news group to Halifax Media Holdings LLC in a deal worth $143.0 million. Amongst other key gainers, Rare Element Resources, McDermott International and RadioShack surged 6.9 percent, 3.9 percent and 3.3 percent, respectively.
The S&P 500 index ended flat in the regular trading session on Tuesday. Mead Johnson Nutrition surged 5.8 percent, after it stated that tests detected no bacteria in a batch of the product used by the baby who had died earlier in Missouri, U.S. Ventas edged 0.8 percent higher, after it agreed to acquire Cogdell Spencer for $217.0 million. MetLife added 0.3 percent, after it agreed to sell most of its U.S. deposit banking business to General Electric. Retail sector stocks, Tiffany & Company, Gap Incorporation and Limited Brands advanced 3.5 percent, 2.4 percent and 1.7 percent, respectively. On the other hand, Sears Holdings plummeted 27.2 percent, after it indicated its plans to shut down as many as 120 stores. Computer Sciences Corporation plunged 9.0 percent, after it warned that it may have to write down its $1.5 billion investment in its contract with the U.K. National Health Service.
European Stocks: Likely to open in the red
The DAX and CAC are expected to open 9 points and 6 to 12 points in negative territory, respectively.
Swiss KOF Leading Indicator is the key economic indicator scheduled for release today.
No major corporate releases are scheduled for today.
The Financial Times Deutschland has reported that Deutsche Telekom AG may bid for rights to broadcast German Bundesliga soccer via satellite.
Carrefour SA has sold 97 supermarket properties held by its real-estate arm to an investment company controlled by the French banking group, Credit Mutuel, for €365.0 million.
RWE AG has sold a 20-megawatt wind power project to Renerco Renewable Energy Concepts AG as part of a deal enabling the latter to buy as many as 10 RWE wind farms located in England, Scotland and Wales.
Areva SA has stated that it was in exclusive talks with the French sovereign wealth fund, FSI, for the sale of its 26.0 percent stake in the mining company, Eramet SA.
Macro Update
Japanese industrial output drops
On a seasonally adjusted monthly basis, Japanese industrial production declined 2.6 percent in November, following a 2.2 percent drop recorded in the previous month.
Japan’s core CPI eases
On an annual basis, the core Consumer Price Index (CPI) in Japan fell 0.2 percent in November, following the 0.1 percent decline posted in October.
Japanese unemployment rate unchanged
The unemployment rate in Japan stood at a seasonally adjusted 4.5 percent in November, unchanged from the rate posted in the previous month.
Retail sales in Japan decline
On an annual basis, retail sales in Japan dropped 2.3 percent in November, compared to a 1.9 percent increase posted in October.
Chinese fiscal spending to rise, says Vice Premier Li
Chinese Vice Premier, Li Keqiang, has reiterated that the nation will maintain a proactive fiscal policy next year, and expects the rise in fiscal expenditure for 2012 to be faster than this year.
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