UK Stocks: Likely to open higher
UK markets are likely to open in the positive territory, with the FTSE 100 expected to open 3 to 5 points higher.
Public Sector Net Cash Requirement, Public Sector Net Borrowing and Retail Sales are scheduled for release today.
Capita Group,
Howden Joinery Group,
Microgen,
Eredene Capital, and
Holders Technology are scheduled to report their results later today.
Minority shareholders of TNK-BP have won a Russian court ruling that would enable them to seek $5.0 -$10.0 billion in damages over
BP's failed bid to partner with Rosneft.
The US judge handling evidence rulings in lawsuits over the 2010 Gulf of Mexico oil spill, has denied a request by
BP attorneys to obtain emails sent by a former adviser to the US President during the oil spill.
The US FDA has approved
AstraZeneca’s heart drug, Brilinta, which reduces the risk of heart attack, strokes and death in adult patients with acute coronary syndrome.
Asia: Trading mixed
Asian markets are trading mixed this morning, taking cues from overnight losses on Wall Street.
In Japan, markets are trading in the negative territory.
Toyota Motor,
Honda Motor and
Nikon Corporation are trading lower, as the yen strengthened.
Nidec Corporation and
TDK Corporation are trading lower, after Seagate Technology and Intel Corporation issued lower-than-expected forecast.
Mitsuba Corporation and
Calsonic Kansei are trading in the red, amid news that Japanese Fair Trade Commission is investigating seven major auto-parts makers, including Mitsuba and Calsonic, on suspicion that they formed a price-fixing group. At 6 am, the Nikkei is trading 0.1% lower at 9,998.5.
In South Korea, markets have moved lower.
Hyundai Heavy Industries is trading in the negative territory, after it reported a drop in its second quarter profit.
LG Chem is trading lower, after it posted lower-than-expected second quarter profit. In Hong Kong,
Xinjiang Xinxin Mining Industry is trading lower, after it stated that it expects its first half year profit to decline significantly. In China, markets are trading in the negative territory, after China’s HSBC manufacturing PMI fell in July.
US Stocks: Futures trading higher
US stock index futures are trading higher at 6am, with the S&P 500 Index futures up 3.3 points.
Key economic releases today include Continuing and Initial Jobless Claims, House Price Index, Leading Indicators and Philadelphia Fed Manufacturing Survey.
In corporate releases,
Microsoft,
Morgan Stanley,
Pepsico,
Advanced Micro Devices,
Philip Morris International,
Freeport McMoran Copper and Gold,
Syntel,
AT&T,
Whirlpool,
Manpower and
Fifth Third Bancorp are scheduled to announce their results today.
In after hours trade yesterday,
Intel lost 1.9%, after it trimmed its forecast for 2011 personal computer unit sales.
Qualcomm shed 2.4%, after its forecast for wireless chip shipments in the current quarter trailed market estimates.
eBay eased 1.4%, after its forecast for third quarter earnings failed to impress markets.
Genworth Financial declined 8.7%, after it guided to a second quarter loss.
SFN Group surged 51.7%, after it agreed to be acquired by Randstad Holding NV for a cash consideration of about $770.0 million.
Robert Half International rallied 9.5%, after its second quarter earnings beat estimates.
Yesterday, the S&P 500 index lost 0.1%, amid concerns that the US government might fail to raise the debt ceiling in time.
Yahoo! Inc, the top laggard on the S&P 500 index, tumbled 7.6%, after it reported lower than expected second quarter revenue and offered a dismal guidance for the third quarter.
United Technologies eased 1.8%, after
Boeing selected a competitor for the contract of upgrading its 737 jet.
Johnson Controls and
Altria Group retreated 4.4% and 2.4%, respectively, as their quarterly results failed to impress investors.
Ecolab declined 7.4%, after it confirmed its plans to acquire Nalco Holding for a consideration of $5.4 billion.
Altera Corporation dropped 6.5%, despite reporting a rise in its second quarter profit.
European Stocks: Expected to open higher
European markets are expected to open in the positive territory. The DAX is likely to open 12 to 18 points up, while the CAC is expected to open 8 points higher.
Euro zone Finance Ministers meeting, German and French Manufacturing Purchasing Managers Index, Euro zone’s Manufacturing Purchasing Managers Index and Current Account and Swiss Trade Balance, are scheduled for release today.
Telefon Ab L M Ericsson,
Roche Holding,
Scania AB,
Iberdrola and
Publicis Groupe are scheduled to report their results later today.
ABB has reported that its net income for the second quarter climbed 43.0% to $893.0 million, amid steady top line growth.
Telefonica has announced that it would invest about $1.5 billion in Peru through 2013.
US Senator, Herb Kohl, has urged that the takeover of T-Mobile USA, the US subsidiary of
Deutsche Telekom, by AT&T, should be blocked, claiming that it would harm competition and consumers.
EDF has decided to postpone the launch of its first European Pressurised Reactor (EPR) nuclear power plant in northern France to 2016, amid safety concerns, following Japan's Fukushima nuclear crisis.
According to The Independent,
Banco Santander's plan for part-flotation of its UK business is set to be delayed until the next year.
Forex Overnight: EUR trading higher
The EUR is trading higher against the USD this morning, after reports indicated that Germany and France had reached an agreement to address the debt crisis in Greece, ahead of the Euro-zone summit in Brussels commencing today.
The JPY is trading marginally higher against the USD, amid market concern that US officials would struggle to raise the debt limit in time.
At 6am, the EUR is trading 0.4% higher against the USD at $1.4265, while the GBP is trading marginally higher against the USD at $1.6158. The EUR is trading 0.3% higher against the GBP at £0.8829, after the UK consumer confidence dropped in June.
The AUD is trading 0.2% lower against the USD, after China’s HSBC manufacturing PMI fell to a 28-month low in July.
Macro Update
UK consumer confidence declines in June
Nationwide's Consumer Confidence in the UK dropped to a reading of 51.0 in June, following a reading of 55.0 in May.
Germany and France reportedly agree on Greek deal
According to the Financial Times, Germany and France have agreed on a joint position over the Greek bailout plan, ahead of the summit scheduled today.
Fitch to decide on US ratings outlook in August
Fitch Ratings has stated that it would decide on US ratings outlook next month, as it concludes a review of the country's economic and fiscal outlook.
Japan posts trade surplus in June
The merchandise trade surplus in Japan stood at ¥70.7 billion in June, compared to a revised ¥855.8 billion deficit in the previous month.
China’s HSBC PMI falls in July
The HSBC Purchasing Managers’ Index (PMI) in China dropped to a reading of 48.9 in July, the lowest level in 28 months, and following a reading of 50.1 in June.China should tighten further, says IMF The IMF has stated that China should continue to withdraw stimulus to fight risk of higher-than-expected inflation.
Economic Calendar
|
Country
|
BST
|
Economic Indicator
|
Relevance
|
Consensus/*Actual
|
Previous
|
Frequency
|
|
UK
|
0:01
|
Nationwide Consumer Confidence (Jun)
|
PP
|
51.00*
|
55.00
|
Monthly
|
|
Japan
|
0:50
|
Merchandise Trade Balance Total (Jun)
|
P
|
¥70.70 bn*
|
-¥855.80 bn
|
Monthly
|
|
Japan
|
5:30
|
All Industry Activity Index (MoM) (May)
|
P
|
2.00%*
|
1.50%
|
Monthly
|
|
Switzerland
|
7:00
|
Trade Balance (Jun)
|
PP
|
-
|
CHF3.25 bn
|
Monthly
|
|
France
|
8:00
|
Purchasing Managers Index Manufacturing (Jul)
|
P
|
52.10
|
52.50
|
Monthly
|
|
Switzerland
|
8:00
|
M3 Money Supply (YoY) (Jun)
|
P
|
-
|
5.60%
|
Monthly
|
|
Switzerland
|
8:00
|
Real Estate Index Family Homes (Q2)
|
P
|
-
|
392.30
|
Quarterly
|
|
Germany
|
8:30
|
Purchasing Managers Index Manufacturing (Jul)
|
PPP
|
54.10
|
54.60
|
Monthly
|
|
Eurozone
|
9:00
|
Purchasing Managers Index Manufacturing (Jul)
|
PPP
|
51.50
|
52.00
|
Monthly
|
|
Eurozone
|
9:00
|
Current Account n.s.a. (May)
|
P
|
-
|
-€6.50 bn
|
Monthly
|
|
Eurozone
|
9:00
|
Current Account s.a. (May)
|
P
|
-
|
-€5.10 bn
|
Monthly
|
|
UK
|
9:30
|
Public Sector Net Borrowing (PSNB) (Jun)
|
PP
|
£10.40 bn
|
£15.20 bn
|
Monthly
|
|
UK
|
9:30
|
PSNB Excluding Interventions (Jun)
|
PP
|
£12.50 bn
|
£17.40 bn
|
Monthly
|
|
UK
|
9:30
|
Public Sector Net Cash Requirement (PSNCR) (Jun)
|
PP
|
£17.00 bn
|
£11.10 bn
|
Monthly
|
|
UK
|
9:30
|
Retail Sales (MoM) (Jun)
|
PP
|
0.50%
|
-1.60%
|
Monthly
|
|
UK
|
9:30
|
Retail Sales With Auto Fuel (MoM) (Jun)
|
PP
|
0.60%
|
-1.40%
|
Monthly
|
|
Switzerland
|
10:00
|
ZEW Survey - Expectations (Jul)
|
P
|
-
|
-24.30
|
Monthly
|
|
US
|
13:30
|
Fed's Evans Speaks to Reporters in Chicago
|
P
|
-
|
-
|
-
|
|
US
|
13:30
|
Continuing Jobless Claims (W/E)
|
P
|
-
|
3710.00K
|
Weekly
|
|
US
|
13:30
|
Initial Jobless Claims (W/E)
|
P
|
410.00K
|
405.00K
|
Weekly
|
|
US
|
15:00
|
House Price Index (MoM) (Jul)
|
PP
|
0.10%
|
0.80%
|
Monthly
|
|
US
|
15:00
|
Leading Indicators (MoM) (Jul)
|
PP
|
0.20%
|
0.80%
|
Monthly
|
|
US
|
15:00
|
Philadelphia Fed Manufacturing Survey (Jul)
|
PP
|
2.00
|
-7.70
|
Monthly
|
|
Eurozone
|
-
|
EcoFin Meeting
|
PPP
|
-
|
-
|
-
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
888 Holdings Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Britvic Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Capita Group Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Great Portland Estates Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Halfords Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Hilton Food Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Howden Joinery Group Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Kingfisher Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Lonmin Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Mitchells & Butlers Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Petropavlovsk Plc
|
FTSE All Share
|
Trading
|
|
UK
|
SABMiller Plc
|
FTSE All Share
|
Trading
|
|
Spain
|
Iberdrola Sa
|
EuroStoxx 50
|
Q2 Earnings Release
|
|
Finland
|
Nokia Oyj
|
EuroStoxx 50
|
Q2 Earnings Release
|
|
France
|
Publicis Groupe Sa
|
CAC 40
|
Interim
|
|
US
|
Advanced Micro Devices Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
AT&T Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Baxter International Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
BB&T Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Chubb Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Compuware Corporation
|
S&P 500
|
Q1 Earnings Release
|
|
US
|
Danaher Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Diamond Offshore Drilling Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Edwards Lifesciences Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Eli Lilly And Co
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Fifth Third BanCorp
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Freeport Mcmoran Copper and Gold Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Goodrich Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Huntington Bancshares Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Ingersoll Rand Public Ltd Co
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Janus Capital Group Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Laboratory Corporation Of America Holdings
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Medco Health Solutions Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Microsoft Corporation
|
S&P 500
|
Q4 Earnings Release
|
|
US
|
Morgan Stanley
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Newfield Exploration Co
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Nucor Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Pepsico Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Philip Morris International Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
PPG Industries Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Safeway Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Sandisk Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Sherwin-Williams Co
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
SNAP On Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Travelers Companies Inc
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Union Pacific Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
VF Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Western Digital Corporation
|
S&P 500
|
Q4 Earnings Release
|
|
US
|
Whirlpool Corporation
|
S&P 500
|
Q2 Earnings Release
|