Forex Overnight: EUR trading under pressure
The EUR is trading lower against the major currencies, ahead of reports scheduled today, which might indicate a decline in consumer confidence in Germany and France, and as investors await further news flow on developments to solve the region’s debt crisis. At 6 am, the EUR has lost 0.2 percent against the USD and 0.1 percent against the GBP, to trade at $1.3907 and £0.8698, respectively.
The JPY has declined marginally against the USD, while it has advanced 0.1 percent against the EUR. Japanese Finance Minister, Jun Azumi, has reiterated his intention to take “bold” action to limit gains in the Yen, if required.
The AUD has weakened marginally against the USD, after data indicated that Australia’s leading economic index declined in August.
UK Stocks: Expected to open weaker
The FTSE 100 is likely to open 19 to 23 points in the red.
Key economic indicators scheduled for release today include BBA Loans for House Purchases and Current Account.
BP,
BG Group,
Reckitt Benckiser Group,
ARM Holdings and
Avacta Group are scheduled to report their results later today.
The FT reports that TNK-BP’s management has recommended that its main board discuss filing a suit for billions of dollars in damages against
BP over its failed alliance with Rosneft, after advice from two law firms.
According to Bloomberg,
Royal Bank of Scotland Group is moving some operations from Hong Kong’s Central business district to the Island East district in Hong Kong.
Vodafone Qatar, the subsidiary of
Vodafone, has announced that its new CFO, Steve Walters, would take up charge on 7 November 2011.
Samir Brikho, the CEO of
AMEC, has stated that the company is ready to move workers back into Libya as soon as possible, to resume work.
Asia: Trading mixed
Asian markets are trading mixed, this morning, as investors exercise caution, ahead of the final meeting of European leaders, scheduled for tomorrow, to find a solution to the region’s debt crisis.
In Japan,
Sumitomo Mitsui Financial Group and
Mitsubishi UFJ Financial Group have retreated, as risk appetite amongst investors waned.
NGK Insulators has plunged, amid reports that it has cautioned its customers against using some of its batteries.
Nissen Holdings Company is trading lower, after it reported a substantial decline in its nine-month net income. On the other hand,
Penta-Ocean Construction has climbed, after it swung to a net profit for the six months ended 30 September 2011. At 6 am, the Nikkei 255 is trading 0.4 percent lower at 8,807.5.
In Hong Kong, resource sector stocks are trading higher, with gains in
Aluminum Corporation of China,
Angang Steel Company and
Citic Pacific. In South Korea, technology sector stocks,
LG Display and
LG Electronics have lost value. In China, markets are trading higher, with
China Vanke Company registering gains, following upbeat third quarter profit. On the other hand,
Pang Da Automobile Trade Company has declined, after Swedish Automobile NV rejected the company’s bid to acquire Saab Automobile.
US Stocks: Futures trading in the red
At 6 am, S&P 500 Futures are trading 3.1 points lower.
S&P/Case-Shiller Home Price Index, Consumer Confidence Index, House Price Index and Richmond Fed Manufacturing Index are the key economic indicators scheduled for release today.
Amazon.com,
United Parcel Service,
3M Company,
Express Scripts and
McKesson Corporation are scheduled to report their results later today.
In after hours trading yesterday,
Netflix plummeted 27.8 percent, after it indicated that it expects its fourth quarter results to be lower than its earlier estimate.
Momenta Pharmaceuticals declined 15.8 percent. The company’s partner, Sandoz Inc. confirmed the launch of a generic version of its Lovenox blood thinner in the fourth quarter under an agreement with a hybrid royalty-profit sharing plan.
Ultra Clean Holdings plunged 11.1 percent, while
ResMed tumbled 8.5 percent, after their quarterly results trailed market expectations. On the other hand, strong third quarter results led
Unisys and
Fortinet to surge 22.4 percent and 10.1 percent, respectively.
In the regular trading session yesterday, the S&P 500 index jumped 1.3 percent, following strong results from Caterpillar, and a slew of merger activities. Commodity sector stocks,
Alpha Natural Resources,
Freeport-McMoRan Copper & Gold and
AK Steel Holding Corporation advanced 9.5 percent, 8.0 percent and 7.5 percent, respectively, following firmer metal prices.
Caterpillar surged 5.0 percent, after it posted better-than-expected third quarter results and provided an upbeat forecast for the full year.
Oracle Corporation rose 2.3 percent, after it agreed to acquire RightNow Technologies for about $1.5 billion. Announcement of the purchase of HealthSpring for about $3.8 billion, led
Cigna Corporation higher by 1.4 percent. On the other hand,
Kimberly-Clark Corporation declined 4.6 percent, after it reduced the upper end of its annual earnings forecast.
European Stocks: Likely to open in negative territory
The DAX and CAC are expected to open 16 to 20 points and 12 to 14 points weaker, respectively.
German GfK Consumer Confidence Index, French Consumer Confidence Indicator and Swiss UBS Consumption Indicator are the key economic indicators scheduled for release today.
Novartis AG,
Deutsche Bank AG,
UBS AG,
Puma SE and
Tieto Oyj are scheduled to announce their results today.
Handelsblatt has reported that
E.ON AG and
RWE AG have received temporary rebates on their tax payments for nuclear fuel elements worth €96.0 million and €74.0 million, respectively.
Renault SA’s Indian unit has announced that it is planning to launch a small car in the country within three months.
Swedish Automobile NV has stated that it has given notice to terminate an agreement to sell a majority stake in
Saab Automobile to two Chinese companies and has rejected their offers to buy the European carmaker.
Macro Update
Australia’s leading economic index falls
On a monthly basis, the Conference Board’s leading economic index for Australia eased 0.1 percent to a reading of 120.5 in August.
New Zealand third quarter inflation slows
On a sequential basis, consumer prices in New Zealand climbed 0.4 percent in the third quarter of 2011, compared to the 1.0 percent gain recorded in the previous quarter.
Fed wants to ensure housing affordability, says Dudley
William C. Dudley, the President of the New York Federal Reserve (Fed), stated that the central bank seeks to prevent mortgage interest rates from rising too much and might take measures to restrain borrowing costs.
China’s urban jobless rate remains steady
China’s registered urban unemployment rate was steady at 4.1 percent at the end of September, unchanged from the end of June.
Japan will take "bold" action, if required, says Azumi
The Japanese Finance Minister, Jun Azumi, has reiterated his commitment to take “bold” action to stem the rise of the yen, if required.
Economic Calendar
|
Country
|
BST
|
Economic Indicator
|
Relevance
|
Consensus/*Actual
|
Previous
|
Frequency
|
|
Japan
|
6:00
|
Small Business Confidence (Oct)
|
P
|
46.40*
|
47.20
|
Monthly
|
|
Germany
|
7:00
|
GfK Consumer Confidence Survey (Nov)
|
PP
|
5.10
|
5.20
|
Monthly
|
|
Switzerland
|
7:00
|
UBS Consumption Indicator (Sep)
|
PP
|
-
|
0.79
|
Monthly
|
|
France
|
7:45
|
Consumer Confidence Indicator (Oct)
|
P
|
78.00
|
80.00
|
Monthly
|
|
UK
|
9:30
|
BBA Loans for House Purchase (Sep)
|
PP
|
36.00 K
|
35.22 K
|
Monthly
|
|
UK
|
9:30
|
Current Account (Q2)
|
PP
|
-£9.00 bn
|
-£9.40 bn
|
Quarterly
|
|
UK
|
9:45
|
BoE's Governor King Speech
|
PPP
|
-
|
-
|
-
|
|
Canada
|
13:30
|
Retail Sales (MoM) (Aug)
|
PP
|
0.30%
|
-0.60%
|
Monthly
|
|
Canada
|
13:30
|
Retail Sales Less Autos (MoM) (Aug)
|
P
|
0.40%
|
0.00%
|
Monthly
|
|
US
|
14:00
|
S&P/Case-Shiller Home Price Index (Aug)
|
P
|
-
|
142.77
|
Monthly
|
|
Canada
|
14:00
|
Bank of Canada Rate Decision
|
PPP
|
1.00%
|
1.00%
|
Monthly
|
|
US
|
15:00
|
Consumer Confidence (Oct)
|
PPP
|
46.50
|
45.40
|
Monthly
|
|
US
|
15:00
|
House Price Index (MoM) (Aug)
|
PP
|
0.20%
|
0.80%
|
Monthly
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
ARM Holdings Plc
|
FTSE All Share
|
Q3 Earnings Release
|
|
UK
|
BG Group Plc
|
FTSE All Share
|
Q3 Earnings Release
|
|
UK
|
BP Plc
|
FTSE All Share
|
Q3 Earnings Release
|
|
UK
|
Bunzl Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Carpetright Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Cineworld Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
CPP Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
F&C Asset Management Plc
|
FTSE All Share
|
Trading
|
|
UK
|
International Ferro Metals Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
International Personal Finance Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Reckitt Benckiser Group Plc
|
FTSE All Share
|
Q3 Earnings Release
|
|
UK
|
Senior Plc
|
FTSE All Share
|
Trading
|
|
Germany
|
Deutsche Bank AG
|
EuroStoxx 50, DAX 30
|
Q3 Earnings Release
|
|
US
|
3M Co
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
AK Steel Holding Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Amazon.com Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Boston Properties Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Broadcom Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
C H Robinson Worldwide Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
C R Bard Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Coach Inc
|
S&P 500
|
Q1 Earnings Release
|
|
US
|
Cummins Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Devry Inc
|
S&P 500
|
Q1 Earnings Release
|
|
US
|
E I Du Pont De Nemours & Co
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Ecolab Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Express Scripts Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
F5 Networks Inc
|
S&P 500
|
Q4 Earnings Release
|
|
US
|
FMC Technologies Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Illinois Tool Works Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Lexmark International Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Life Technologies Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
McKesson Corporation
|
S&P 500
|
Q2 Earnings Release
|
|
US
|
Molex Inc
|
S&P 500
|
Q1 Earnings Release
|
|
US
|
Nabors Industries Ltd
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
National Oilwell Varco Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
PACCAR Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Peabody Energy Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
QEP Resources Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Quest Diagnostics Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Range Resources Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Regions Financial Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Reynolds American Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Robert Half International Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Ryder System Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Sherwin-Williams Co
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Sigma Aldrich Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Simon Property Group Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
T Rowe Price Group Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Tellabs Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Total System Services Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
United Parcel Service Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
United States Steel Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Waters Corporation
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Western Union Co
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Xerox Corporation
|
S&P 500
|
Q3 Earnings Release
|