UK Stocks: Likely to open lower
UK markets are likely to open lower, with the FTSE 100 expected to open 30 to 33 points lower.
Investors await BBA Mortgage Approvals and CBI Distributive Trades Survey - Realised.
DS Smith,
Chemring Group,
Dart Group,
Micro Focus International and
Norcros are scheduled to report their results later today.
Barclays has asked the US Bankruptcy Judge to dismiss the Lehman Brothers Holdings claim for $500.0 million, for unpaid bonuses.
The Financial Times has reported that Fidelity National Information Services has made a preliminary bid for financial software company,
Misys.
According to the Financial Times,
International Consolidated Airlines Group’s British Airways cabin crew has voted to accept a peace deal, ending 18 months of labour dispute.
News Corporation has moved closer towards obtaining UK government’s approval of its bid for
British Sky Broadcasting Group, following regulator, Ofcom’s submission of its recommendation on the offer.
Asia: Trading mostly lower
Asian markets are trading mostly lower this morning, after the Federal Reserve trimmed its US economic growth forecast for this year and the next.
In Japan,
Kyocera Corporation and
Nikon Corporation, both having a major share of revenues from the US, are trading lower.
Fujifilm Holdings Corporation is trading lower, after a broker removed the stock from its “Conviction Buy” list and reduced its full year operating profit forecast for the company. At 6 am, the Nikkei is trading flat at 9,633.7.
In South Korea, despite markets trading lower,
Korea Express is trading sharply higher, after
Samsung SDS indicated that it may make a joint bid with
Posco. Hong Kong markets are dragged down by declines in financial sector stocks, with
China Construction Bank and
HSBC Holdings trading lower.
Aluminum Corporation of China Limited is trading lower, after the China Securities Journal indicated the government should hike interest rates. In China, markets are trading higher, with gains in pharmaceutical, property and consumer staple sector stocks.
US Stocks: Futures trading lower
US stock index futures are trading lower at 6am, with the S&P 500 Index futures 4.3 points down.
Key economic releases today include Initial Jobless Claims, Chicago Fed National Activity Index and New Home Sales.
In corporate releases,
Oracle Corporation,
Conagra Foods,
Discover Financial Services,
H&R Block,
Lennar Corporation, and
Micron Technology are scheduled to announce their results today.
In after hours trade yesterday,
Bristol-Myers Squibb and
Pfizer advanced 6.2% and 3.8%, respectively, after they indicated that their co-developed blood thinner, Eliquis, had reached the efficacy goals of a late-stage trial.
Pharmasset advanced 4.4%, after the company received a US patent. Other pharmaceutical sector stocks,
PharMerica and
BioCryst Pharmaceuticals gained 5.5% and 4.8%, respectively.
Herman Miller and
Steelcase soared 6.5% and 5.8%, respectively, after reporting better than expected quarterly results.
Red Hat climbed 4.4%, after posting better than expected first-quarter results, and raising its full year forecast.
Yesterday, the S&P 500 index lost 0.7%, after the Federal Reserve lowered its economic growth forecast.
Adobe Systems dropped 6.3%, after it posted lower-than-expected European sales.
Gannett fell 3.9%, following its announcement to lower employee headcount. Retail sector stocks,
Sears Holdings,
Abercrombie & Fitch,
Supervalu and
J.C. Penney fell 3.4%, 3.0%, 3.0% and 2.7%, respectively.
CarMax advanced 7.0%, after it reported upbeat first quarter results.
L-3 Communications added 4.7%, after reports indicated that investors were pushing the company to spin-off some units.
European Stocks: Expected to open lower
European markets are expected to open lower. The DAX is likely to open 32 to 38 points lower, while the CAC is expected to open 23 to 28 points lower.
Investors await German, French and Euro zone’s Purchasing Manager Index and Swiss Trade Balance.
Kappahl Holding and
Flugger A/S are scheduled to report their results later today.
Prada has stated that it priced its Hong Kong initial public offering at HK$39.50 apiece, thereby confirming earlier reports that it would price shares at the lower end of the range.
According to City A.M,
Grupo Santander’s Madrid management wants its UK division to go public earlier, while its London management wants to wait until 2012 for the listing.
Pioneer Investments, a unit of
UniCredit, has announced that it is shifting its Singapore Investment Desk to London, which will be its emerging-markets investment center.
United Auto Workers (UAW) President, Bob King, has stated that the group has joined a global network of unions that represent
Fiat and Chrysler workers across Europe, South America and in Canada, to share information and best practices.
According to Bloomberg, American Airlines is in talks with
EADS’s subsidiary, Airbus, for buying at least 100 narrow-body planes from its A320 series.
According to CNBC, AirAsia is set to place a record order, which includes 200 revamped A320neo jets, in a $17 billion deal, making it the largest airline customer of
EADS’s subsidiary, Airbus.
Reuters has reported that the initial public offering of Italy's
Salvatore Ferragamo has been covered more than twice.
Macro Update
Germany, France begin talks with banks on Greek rollover
According to Bloomberg, Germany, France and the Netherlands have commenced talks with banks and insurers on getting private investors to participate in a Greek debt rollover package.
Fed holds rates, lowers growth forecast
The Fed voted unanimously to hold its benchmark interest rate near zero “for an extended period”. The Federal Reserve also downwardly revised its 2011 annual growth outlook to 2.7% to 2.9%, from a previous estimate of 3.1% to 3.3%. The Fed Chairman indicated that several factors such as rising commodity prices, weak job market and supply chain problems resulting from the Japanese tsunami, continue to weigh on the US economy.
Australian leading index climbs in April
The Conference Board’s leading economic index in Australia rose 0.1% in April, compared to a revised 0.1% fall posted in the previous month.
China's Manufacturing PMI declines in June
The flash HSBC/Markit Purchasing Managers' Index (PMI) in China dropped to a reading of 50.1 in June, the lowest reading in 11 months, and compared to a reading of 51.6 posted in May.
Forex Overnight: EUR trading lower
The EUR is trading lower against the USD this morning, on continuing speculation that the Greek Prime Minister, George Papandreou, will struggle to get the parliamentary approval for austerity measures next week. Moreover, the Federal Reserve at its policy meeting yesterday, gave no indication that it plans to extend or expand its $600.0 billion quantitative easing program that expires at the end of this month.
The JPY is trading 0.2% lower against the USD.
At 6am, the EUR is trading 0.3% lower against the USD at $1.4307, while the GBP is trading 0.2% lower against the USD at $1.6047. The EUR is trading 0.2% lower against the GBP at £0.8916. The two-day meeting of the European Union leaders, to discuss the financing needs for Greece, commences today.
The AUD is trading 0.2% lower against the USD.
Economic Calendar
|
Country
|
BST
|
Economic Indicator
|
Relevance
|
Consensus/
*Actual
|
Previous
|
Frequency
|
|
Japan
|
2:30
|
BOJ Board Member Morimoto to Speak in Nagasaki City
|
P
|
|
|
|
|
Switzerland
|
7:00
|
Exports (MoM) (May)
|
PP
|
-
|
7.90%
|
Monthly
|
|
Switzerland
|
7:00
|
Imports (MoM) (May)
|
PP
|
-
|
4.00%
|
Monthly
|
|
Switzerland
|
7:00
|
Trade Balance (May)
|
PP
|
CHF1.79 bn
|
CHF1.44 bn
|
Monthly
|
|
France
|
8:00
|
Purchasing Manager Index Manufacturing (Jun)
|
P
|
54.00
|
54.90
|
Monthly
|
|
France
|
8:00
|
Purchasing Manager Index Services (Jun)
|
P
|
60.50
|
62.50
|
Monthly
|
|
Germany
|
8:30
|
Purchasing Manager Index Manufacturing (Jun)
|
PP
|
57.00
|
57.70
|
Monthly
|
|
Germany
|
8:30
|
Purchasing Manager Index Services (Jun)
|
PP
|
55.70
|
56.10
|
Monthly
|
|
Eurozone
|
9:00
|
Purchasing Manager Index Services (Jun)
|
PP
|
55.30
|
56.00
|
Monthly
|
|
Eurozone
|
9:00
|
Purchasing Manager Index Manufacturing (Jun)
|
PP
|
53.80
|
54.60
|
Monthly
|
|
Eurozone
|
9:00
|
Purchasing Manager Index Composite (Jun)
|
PP
|
55.20
|
55.80
|
Monthly
|
|
UK
|
9:30
|
BBA Mortgage Approvals (May)
|
PP
|
30.00 K
|
29.40 K
|
Monthly
|
|
UK
|
11:00
|
CBI Distributive Trades Survey - Realized (Jun)
|
PP
|
13.00
|
18.00
|
Monthly
|
|
US
|
13:30
|
Continuing Jobless Claims (W/E)
|
PP
|
3670.0 K
|
3675.0 K
|
Weekly
|
|
US
|
13:30
|
Initial Jobless Claims (W/E)
|
PP
|
414.00 K
|
414.00 K
|
Weekly
|
|
US
|
13:30
|
Chicago Fed Nat Activity Index (May)
|
PP
|
-0.05
|
-0.45
|
Monthly
|
|
US
|
15:00
|
New Home Sales (MoM) (May)
|
PP
|
-4.00%
|
7.30%
|
Monthly
|
|
US
|
15:00
|
New Home Sales (May)
|
PP
|
0.31 Mn
|
0.32 Mn
|
Monthly
|
|
US
|
15:30
|
EIA Natural Gas Storage Change (W/E)
|
P
|
91.00 BCF
|
69 BCF
|
Weekly
|
|
Eurozone
|
17:00
|
ECB Trichet's Speech
|
PPP
|
-
|
-
|
-
|
|
Eurozone
|
-
|
EcoFin Meeting
|
PPP
|
-
|
-
|
-
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
Chemring Group Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Dixons Retail Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
DS Smith Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
Go-Ahead Group
|
FTSE All Share
|
Trading
|
|
UK
|
Micro Focus International Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
Rank Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Safestore Holdings Plc
|
FTSE All Share
|
Interim
|
|
US
|
Conagra Foods Inc
|
S&P 500
|
Q4 Earnings Release
|
|
US
|
Discover Financial Services
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
H&R Block Inc
|
S&P 500
|
Q4 Earnings Release
|
|
US
|
Lennar Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Micron Technology Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Oracle Corporation
|
S&P 500
|
Q4 Earnings Release
|