UK Stocks: Likely to open higher
UK markets are likely to open in the green, with the FTSE 100 expected to open 21 points higher.
Investors await Nationwide House Prices and Bank of England Credit Conditions Report.
HMV Group,
Greene King,
Northgate,
Hampson Industries,
Accsys Technologies and
Flybe Group are scheduled to report their results later today.
The National Institute for Health and Clinical Excellence (NICE) has recommended
AstraZeneca’s new heart medicine, Brilique, as a cost-effective treatment in Britain.
A US appeals court has sided with
BP in a securities fraud lawsuit arising from two oil spills discovered at the Prudhoe Bay, Alaska, in 2006.
The TMX Group and the
London Stock Exchange Group have abandoned plans for a $3.4 billion tie-up, after the former failed to secure 67.0% shareholder support to complete the transaction.
The CEO of
Vodafone, Andy Halford, has announced that the company could receive an annual dividend of up to $5.5 billion from its 45.0 % stake in US venture, Verizon Wireless, beginning next year
Asia: Trading higher
Asian markets are trading higher this morning, after the Greek Parliament approved the proposed austerity measures.
In Japan, financials,
Mitsubishi UFJ Financial Group and
Sumitomo Mitsui Financial Group, are trading higher, after a broker upgraded its rating on the sector to “Over-weight”.
Kyushu Electric Power is trading higher, amid news that a local government would allow it to resume operations at its halted power plants. At 6 am, the Nikkei is trading 0.3% higher at 9,823.5.
In South Korea, markets are trading higher, with
Woori Finance Holdings trading up, after the government indicated that it had received interest from three local private equity funds for its stake in the company.
Daewoo Shipbuilding and Marine Engineering is trading higher, after it stated that it had received a large order. In Hong Kong, markets are trading in the positive territory.
HSBC Holdings has gained, on easing worries about the debt situation in Greece. In China,
China Vanke is trading higher, amid reports that it has started work on its first project in Xinjiang’s capital, Urumqi.
US Stocks: Futures trading higher
US stock index futures are trading higher at 6am, with the S&P 500 Index futures up 2.8 points.
Key economic releases today include Continuing Claims, Initial Jobless Claims and Chicago Purchasing Managers’ Index.
In corporate releases,
Constellation Brands,
McCormick & Company,
Apollo Group and
Darden Restaurants are scheduled to announce their results today.
In after hours trade yesterday,
Usana Health Sciences surged 16.5%, after it issued a buoyant outlook for its second quarter earnings. Among the other key gainers were
Pozen and
BCD Semiconductor Manufacturing, up 10.3% and 8.0%, respectively.
Globus Maritime advanced 3.9%, after it announced the pricing of its follow-on public offering.
Callaway Golf plunged 6.2%, after its CEO resigned, and it indicated job cuts, amid a weak preliminary outlook for the current quarter.
Yesterday, the S&P 500 index gained 0.8%, after the Greek Parliament voted in favour of the proposed austerity measures. Electronic payments companies,
Visa and
MasterCard rallied 15.0% and 11.3%, respectively, after the Fed set a higher than previously proposed cap on debit card transaction fees.
United States Steel and
AK Steel Holding surged 5.9% and 5.2%, respectively, after a broker upgraded its rating on both the stocks to “Buy” from “Hold”.
Monsanto soared 5.0%, after the company posted upbeat third quarter earnings and hiked its full year profit outlook.
Citigroup gained 3.4%, after a broker upgraded its rating to “Buy” from “Neutral”. Among other financial sector stocks,
Morgan Stanley and
Bank of America advanced 4.7% and 3.0%, respectively.
European Stocks: Expected to open higher
European markets are expected to open positive. The DAX is likely to open 24 points higher, while the CAC is expected to open 11 points up.
Investors await German Retail Sales and Unemployment rate, French Consumer Spending and Producer Price Index, and Euro zone’s M3 Money Supply and Consumer Price Index Estimate.
Barry Callebaut,
Hornbach Holding,
Net Mobile,
Netbooster and
Generix are scheduled to report their results later today.
An advisory panel of the US Food and Drug Administration (FDA) has voted against
Roche Holdings’, breast cancer drug, Avastin, citing it as neither safe nor effective.
Beiersdorf has agreed to pay $900,000 to settle US Federal Trade Commission charges over false advertisement claims for its product, Nivea My Silhouette.
The Wall Street Journal has reported that AMR Corporation’s American Airlines is in talks with
EADS’s subsidiary Airbus, and Boeing to replace its entire domestic fleet, by purchasing at least 250 airplanes, in a deal worth about $15.0 billion.
Casino Guichard-Perrachon SA has raised its stake in Cia. Brasileira de Distribuicao Grupo Pao de Acucar to 43.1%.
According to Argentina's industry ministry,
Renault plans to invest $100.0 million to expand capacity in Argentina.
Forex Overnight: EUR trading higher
The EUR is trading higher against the USD this morning, as the immediate risk of default by Greece eased, and on market speculation that the ECB would increase interest rates next week. Market expects that data scheduled to be released later in the day would signal that the European consumer price index climbed in June.
The JPY is trading 0.5% higher against the USD.
At 6am, the EUR is trading 0.5% higher against the USD at $1.4513, while the GBP is trading 0.3% higher against the USD at $1.6109. The EUR is trading 0.2% higher against the GBP at £0.9009.
The AUD is trading 0.6% higher against the USD, ahead of the Australian central bank report due today, which the market expects would indicate that bank lending in the country climbed in May.
Macro Update
UK consumer confidence declines in June
GfK reported that its index measuring consumer confidence in the UK dropped to a reading of -25.0 in June, following a reading of -21.0 in May.
S&P cautions on US credit rating
The S&P has cautioned that the US treasury bills maturing on 4 August 2011 would be rated 'D' if the government fails to honor them.
Japan's manufacturing PMI declines in June
The seasonally adjusted Purchasing Managers' Index (PMI) for manufacturing sector activities in Japan fell to a reading of 50.7 in June, compared to 51.3 in the previous month.
South Korean industrial production climbs in May
On an annual basis, the industrial output in South Korea rose 8.3% in May, following a 6.9% growth recorded in April.
South Korea raises inflation forecast, cuts growth outlook
South Korea’s government anticipates inflation to be 4.0% this year, higher than the previously forecasted 3.0%, while the economy is estimated to expand 4.5% in 2011, lower than the 5.0% growth predicted earlier.
Economic Calendar
|
Country
|
BST
|
Economic Indicator
|
Relevance
|
Consensus/*Actuals
|
Previous
|
Frequency
|
|
UK
|
0:01
|
Gfk Consumer Confidence (Jun)
|
PP
|
-25.00*
|
-21
|
Monthly
|
|
Japan
|
0:15
|
Nomura/ JMMA Manufacturing Puchasing Manager Index (Jun)
|
PP
|
50.70*
|
51.3
|
Monthly
|
|
Japan
|
5:00
|
Vehicle Production (YoY) (May)
|
P
|
-30.90%*
|
-60.10%
|
Monthly
|
|
Japan
|
6:00
|
Annualised Housing Starts (May)
|
PP
|
0.81 mn*
|
0.79 mn
|
Monthly
|
|
Japan
|
6:00
|
Construction Orders (YoY) (May)
|
PP
|
25.50%*
|
31.40%
|
Monthly
|
|
Germany
|
7:00
|
Retail Sales (MoM) (May)
|
PP
|
0.50%
|
0.60%
|
Monthly
|
|
UK
|
7:00
|
Nationwide House Prices s.a. (MoM) (Jun)
|
P
|
0.10%
|
0.30%
|
Monthly
|
|
France
|
7:45
|
Consumer Spending (MoM) (May)
|
P
|
0.80%
|
-1.60%
|
Monthly
|
|
France
|
7:45
|
Producer Prices (MoM) (May)
|
P
|
0.20%
|
0.80%
|
Monthly
|
|
Germany
|
8:55
|
Unemployment Rate s.a. (Jun)
|
PPP
|
7.00%
|
7.00%
|
Monthly
|
|
Eurozone
|
9:00
|
M3 Money Supply s.a. (3M) (May)
|
P
|
2.10%
|
2.10%
|
Monthly
|
|
UK
|
9:30
|
Bank of England Credit Conditions Report (Q2)
|
PP
|
-
|
-
|
-
|
|
Eurozone
|
10:00
|
Consumer Price Index Estimate (YoY) (Jun)
|
PP
|
2.80%
|
2.70%
|
Monthly
|
|
US
|
13:30
|
Continuing Claims (W/E)
|
P
|
3690.00 K
|
3697.00 K
|
Weekly
|
|
US
|
13:30
|
Initial Jobless Claims (W/E)
|
P
|
420.00 K
|
429.00 K
|
Weekly
|
|
Canada
|
13:30
|
Gross Domestic Product (MoM) (Apr)
|
PPP
|
-0.10%
|
0.30%
|
Monthly
|
|
US
|
14:00
|
Fed's Bullard Gives Speech on QE
|
P
|
-
|
-
|
Monthly
|
|
US
|
14:45
|
Chicago Purchasing Manager (Jun)
|
P
|
54.0
|
56.6
|
Monthly
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
Debenhams Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Flybe Group Ltd
|
FTSE All Share
|
Prelim
|
|
UK
|
Greene King Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
Hampson Industries Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
HMV Group Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
John Wood Group Plc
|
FTSE All Share
|
Trading
|
|
UK
|
Northgate Plc
|
FTSE All Share
|
Final
|
|
UK
|
Petrofac Ltd
|
FTSE All Share
|
Trading
|
|
UK
|
Reneuron Group Plc
|
FTSE All Share
|
Prelim
|
|
UK
|
Taylor Wimpey Plc
|
FTSE All Share
|
Trading
|
|
UK
|
The European Investment Trust Plc
|
FTSE All Share
|
Trading
|
|
US
|
Apollo Group Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
Constellation Brands Inc
|
S&P 500
|
Q1 Earnings Release
|
|
US
|
Darden Restaurants Inc
|
S&P 500
|
Q4 Earnings Release
|
|
US
|
Mccormick & Co Inc
|
S&P 500
|
Q2 Earnings Release
|