Forex Overnight: EUR trading weak
The EUR is trading under pressure against the majors, this morning, ahead of a report scheduled for release next week, which is likely to indicate a slowdown in the Eurozone’s manufacturing sector in December. Yesterday’s lacklustre Italian bond auction has continued to weigh on investor sentiment. At 6 am, the EUR has dropped 0.2 percent against the USD to trade at $1.2940, while it has declined 0.1 percent against the GBP to trade at £0.8395.
The JPY has gained 0.2 percent and 0.3 percent against the USD and the EUR, respectively.
The AUD has advanced 0.3 percent against the USD, while the CAD has declined 0.1 percent against the USD.
UK Stocks: Expected to open in positive territory
The FTSE 100 is likely to open 4 to 6 points in the green.
The Nationwide House Price Index and the Bank of England Housing Equity Withdrawal are the key economic indicators scheduled for release today.
No major corporate releases are scheduled for today.
Fortune Oil has announced that it has signed an agreement with Mr. Liu Minghui, a substantial shareholder in China Gas Holdings Limited, to form a newly incorporated 50:50 joint venture company, China Gas Group Limited.
Leed Petroleum has stated that it has received notice from Old Church Street Holdings Limited that they no longer have a stake in the company.
Asia: Trading in the green
Asian markets are trading higher this morning, taking cues from overnight gains on Wall Street.
In Japan, Chiyoda Corporation has advanced, amid news that it may report upbeat operating profit for the full year. Marubeni Corporation has gained value, after the company along with two other companies bagged a contract worth $1.70 billion to upgrade an oil refinery in Kazakhstan. Export sector stocks, Sony Corporation, Sharp Corporation and Honda Motor have edged higher. On the other hand, Himaraya Company has slumped, after it reported a net loss for the nine months ended 30 November 2011. At 6 am, the Nikkei 225 index has gained 0.5 percent to trade at 8,443.5.
In Hong Kong, Cnooc Limited has risen, tracking the movement in crude oil prices. HSBC Holdings and Bank of Communications are trading in the green, as risk appetite amongst investors increased. In China, FAW Car has climbed, after the company received a regulatory approval to buy a stake in Tianjin FAW Xiali Automobile Co. from its parent, China FAW Group Corporation. Jiangxi Copper and Zhuzhou Smelter Group have recorded gains, following firmer metal prices. South Korean markets are closed on account of a holiday for New Year’s Eve.
US Stocks: Futures trading in the red
At 6 am, S&P 500 futures are trading 3.0 points lower.
NAPM-Milwaukee Business Index is the key economic indicator scheduled for release today.
Ark Restaurants and Cano Petroleum are scheduled to announce their results today.
AMR Corporation tumbled 39.8 percent in after hours trading session on Thursday, after the New York Stock Exchange stated that it would delist the common stock of the company before the opening bell on 5 January 2012. Sears Holdings eased 0.4 percent, after Fitch Ratings downgraded its long-term Issuer Default Ratings on the company and its various subsidiaries to “CCC” from “B”. On the other hand, MoSys Incorporation rallied 18.9 percent, after Invensas Corporation, a wholly owned subsidiary of Tessera Technologies, stated that it had purchased 73 memory chip technology patents from MoSys for a cash consideration of $35.0 million. Thomson Reuters, Suntech Power Holdings and Standard Pacific featured amongst other major gainers, climbing 2.3 percent, 1.9 percent and 1.9 percent, respectively.
The S&P 500 index advanced 1.1 percent in the regular trading session yesterday, after data indicated that pending home sales surged in November to the highest level since April 2010. Masco Corporation, the top gainer on the S&P 500 index, rallied 8.3 percent. Home building sector stocks, PulteGroup, Lennar Corporation and DR Horton surged 6.0 percent, 4.6 percent and 4.4 percent, respectively, following upbeat pending home sales data in November. Chesapeake Energy gained 0.3 percent, after it agreed to sell its Marcellus Shale midstream assets to its affiliate, Chesapeake Midstream Partners LP, for a consideration of $865.0 million. Bank of America, Suntrust Banks, Regions Financial and Fifth Third Bancorp rose 3.3 percent, 3.1 percent, 2.8 percent and 2.7 percent, respectively, on higher risk appetite. On the other hand, retailers, Macy’s, Kohls Corporation, Gap Inc, and Limited Brands eased 0.6 percent, 0.5 percent, 0.4 percent and 0.3 percent, respectively, after a broker stated that Amazon.com Inc’s fourth quarter sales may miss market consensus.
European Stocks: Likely to open firmer
The DAX and the CAC are expected to open 4 to 7 points and 7 to 8 points in positive territory, respectively.
German Retail Sales for November is the key economic indicator scheduled for release today.
Mistral Media AG is scheduled to announce its results today.
Deutsche Presse-Agentur has reported that Siemens AG has recalled 15 batches of laboratory pregnancy tests, after discovering incidents of false positives and unreadable results.
The new Libyan government has stated that it will review two “social initiative” contracts signed with Eni SpA in 2006 and 2010, respectively, and insisted that the company participates in reconstructing cities destroyed by Muammar Gaddafi’s forces during the conflict.
Deutsche Telekom AG and its Hungarian unit, Magyar Telekom, will pay more than $95.0 million to settle U.S. Justice Department’s allegations that they violated the Foreign Corrupt Practices Act.
Fomento de Construcciones y Contratas SA has disclosed that it has sold its Madrid skyscraper, Torre Picasso, for €400.0 million.
Portuguese utility firm, Redes Energeticas Nacionais SA, has announced that its CEO, Joao Nuno Palma, would leave the company to join as an Executive Board Member in the state-owned bank, Caixa Geral de Depositos SA.
Macro Update
Japanese manufacturing activity improves
The manufacturing Purchasing Managers’ Index (PMI) in Japan climbed to a reading of 50.2 in December, following a reading of 49.1 posted in the previous month.
Chinese manufacturing sector activity contracts
HSBC’s seasonally adjusted manufacturing PMI in China stood at a reading of 48.7 in December, compared to the previously estimated reading of 49.0.
South Korean consumer prices rise higher than expected
On an annual basis, consumer prices in South Korea advanced 4.2 percent in December, unchanged from the rise posted in November, and against expectations of a 4.0 percent rise.
Australian private sector credit rises
On a monthly basis, Australian private sector credit climbed 0.3 percent in November, compared to the 0.2 percent increase posted in the previous month.
Home prices in Australia drop
According to the real estate researcher, RP Data, home prices in eight Australian capital cities slid 3.7 percent in the eleven months to November 2011.
SaxoBankUK