10 February 2012 at 7:03 GMT
Forex Overnight: EUR trading lower
The EUR is trading lower against the major currencies early Friday after European finance ministers refused to approve the €130.0 billion rescue package for Greece until a newly crafted austerity plan is endorsed. At 6 am, the EUR has declined 0.2 percent against the USD to trade at $1.3261, while it has lost marginally against the GBP to trade at £0.8399.
The JPY has advanced 0.2 percent against the EUR, while it has gained marginally against the USD.
The AUD has declined 0.7 percent versus the USD, after the Reserve Bank of Australia (RBA) lowered its growth and inflation forecast for 2012.
UK Stocks: Expected to open in negative territory
The FTSE 100 is likely to open 12 to 13 points weaker.
Producer Price Index is the key economic indicator scheduled for release today.
Barclays, Skywest Airlines, Zenergy Power and Proventec are scheduled to announce their results today.
BP has won a preliminary ruling to bar references to previous accidents involving the company, from this month’s trial over fault for the 2010 Gulf of Mexico blast and oil spill.
AstraZeneca has lost a lawsuit in a U.S. appeals court in a bid to protect the patent on its cholesterol-lowering drug, Crestor, from generic competition until 2021.
The Financial Times has reported that Twin America, a U.S. joint venture majority-owned by Stagecoach Group, is discontinuing its interstate services in a move to sidestep regulators that have called for the break-up of the company.
Asia: Trading mostly lower
Asian markets are trading mostly lower, after the European finance ministers withheld the rescue package for Greece.
In Japan, banking sector stocks, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group have retreated amid market speculation that the Bank of Japan might refrain from additional monetary easing next week. Automobile sector stocks, Toyota Motor, Honda Motor and Suzuki Motor have registered losses. On the other hand, Nippon Yusen K.K. and Mitsui O.S.K. Lines are trading higher after a broker upgraded its rating on both the stocks to “Over-weight” from “Neutral”. At 6 am, the Nikkei 225 is trading 0.5 percent lower at 8,960.5.
In Hong Kong, financial sector stocks, Agricultural Bank of China, Bank of Communications, China Citic Bank and Ping An Insurance Group are trading under pressure. In South Korea, Samsung Electronics and LG Electronics have led electronic sector stocks lower. Shinhan Financial Group and Hana Financial Group have also edged lower on lower risk appetite. In China, China Vanke and Poly Real Estate Group have gained after an eastern Chinese city stated that it would subsidise home purchases. Anhui Conch Cement has surged amid news that government investment in low-income housing would increase.
US Stocks: Futures trading in the red
At 6 am, S&P 500 futures are trading 6.3 points weaker.
Reuters/Michigan Consumer Sentiment Index and Trade Balance are the key economic indicators scheduled for release today. Investors also await the Budget Statement for January.
PPL Corporation, NYSE Euronext and FLIR Systems are scheduled to announce their results today.
LinkedIn rallied 8.9 percent in after hours trading session on Thursday after it reported buoyant fourth quarter results and guided to better-than-expected revenue guidance for the full year. Cincinnati Bell climbed 4.6 percent despite reporting downbeat fourth quarter results. Activision Blizzard rose 1.0 percent after its fourth quarter revenue and non-GAAP earnings topped market consensus. Intel Corporation slid 0.1 percent amid news that the New York Attorney General has agreed to end the lawsuit against the company alleging violation of U.S. and state antitrust laws. Expedia dipped 3.7 percent after its fourth quarter revenue fell short of market consensus. True Religion Apparel plunged 22.6 percent after it posted downbeat fourth quarter results and provided a dismal financial outlook for the full year. Lower-than-anticipated first quarter revenue and non-GAAP earnings led Nuance Communications to tumble 13.4 percent.
The S&P 500 index added 0.2 percent in the regular trading session on Thursday after Greek political leaders reached an accord on austerity measures to secure the second bailout fund from international creditors. Whole Foods Market and Visa climbed 5.3 percent and 3.8 percent, respectively, after they posted better-than-expected first quarter results. Akamai Technologies soared 10.5 percent following upbeat fourth quarter results. Teradata Corporation jumped 10.2 percent after its fourth quarter earnings surpassed market estimate and it approved a share buyback program worth $300.0 million. Better-than-expected fourth quarter earnings and hike in its quarterly dividend led Lorillard to surge 9.7 percent. Philip Morris International edged 2.8 percent higher after it reported strong fourth quarter results. United Technologies rose 2.5 percent amid reports that it is assessing the sale of its pump and compressor making unit. On the flip side, Joy Global declined 4.1 percent after a broker downgraded its rating on the stock to “Hold” from “Buy”. Pepsico dropped 3.7 percent after it forecast lower-than-expected FY2012 earnings and announced plans to layoff around 8,700 employees.
European Stocks: Likely to open weak
The DAX and CAC are expected to open 13 to 16 points and about 11 points lower, respectively.
German & Swiss Consumer Price Index and French Current Account Balance, Industrial Production & Manufacturing Production are the key economic indicators scheduled for release today.
Total SA, Saab AB, Michelin SCA, Bankia SA and Alcatel Lucent SA are scheduled to report their results later today.
Sky Deutschland AG has indicated that it has raised €155.8 million in a capital increase. Earlier, the company indicated that it had placed about 70.8 million new ordinary registered shares, corresponding to 10.0 percent of the share capital.
According to Reuters, the French government and state bank, Caisse des Depots et Consignations, will each take a stake of around 32.0 percent in the municipal finance unit of Dexia.
Macro Update
Greek rescue package held back
European finance ministers have held back a rescue package for Greece, demanding additional measures and a parliamentary approval before providing the €130.0 billion aid.
RBA trims growth and inflation forecasts
The RBA has lowered its forecast for the nation’s average economic growth to 3.5 percent in 2012, compared to a previous estimate of a 4.0 percent growth. The central bank has further stated that the consumer price inflation would ease to 3.0 percent in 2012, from a previous forecast of 3.25 percent.
Chinese trade surplus widens
Chinese trade surplus rose to $27.3 billion in January, compared to a $16.5 billion surplus posted in the previous month. On an annual basis, the imports dropped 15.3 percent in January, while the exports edged 0.5 percent lower.
Japanese CGPI growth slows
On an annual basis, the Corporate Goods Price Index (CGPI) in Japan climbed 0.5 percent in January, compared to a 1.2 percent rise posted in the previous month.
Calendar of today's events.