Forex Overnight: EUR under pressure
Market speculation that the European Central Bank may cut borrowing costs has led the EUR to trade lower against the major currencies, this morning. Additionally, there are expectations that data scheduled to be released later today would show that unemployment in the Eurozone remained unchanged last month, at its highest level since February 2011. At 6 am, the EUR has lost 0.1 percent against the USD at $1.4428, and has declined 0.2 percent against the GBP to £0.8844.
The JPY is trading 0.2 percent and 0.3 percent higher against the USD and the EUR, respectively.
The AUD and CAD have advanced marginally against the USD, this morning.
UK Stocks: Expected to open lower
The FTSE 100 is expected to trade 5 points in the red, at the open.
No economic releases are scheduled for today.
Bwin.party Digital Entertainment,
Cape,
Aer Lingus Group,
Oxford BioMedica and
Asterand are scheduled to report their results later today.
GlaxoSmithKline has indicated that it has bought back 1.0 million of its Ordinary shares of 25.0 p each, adding that the shares would be cancelled.
Irish Life & Permanent's banking unit, Permanent TSB, has entered into an agreement to acquire
Northern Rock’s Dublin-based branch, Northern Rock Ireland.
Asia: Trading mostly higher
Asian markets are trading mostly higher this morning, mirroring overnight gains on Wall Street.
In Japan, markets have recouped their initial losses and are trading in the green. At 6 am, the Nikkei has edged 0.1 percent higher to 8,959.5.
Nintendo has risen sharply, after a broker upgraded its rating to “Out-Perform” from “Neutral”. On the other hand,
Fanuc and
Mazda Motor Corp are trading lower, following a lower than expected rise in Japan’s industrial production in July.
Taiheiyo Cement Corp has slumped, after it announced plans to raise ¥37.5 billion through a public share sale.
South Korean markets have continued their uptrend.
Hyundai Motor has gained, supported by foreign buying. Meanwhile, the automaker has denied reports about a potential acquisition of Green Cross Life Insurance. In Hong Kong,
Evergrande Real Estate Group is trading in positive territory, after posting robust increase in its first half year profit. In China, markets have slid, amid concerns about a slowdown in corporate earnings growth. A sharp drop in first half year profit has led
Baoshan Iron & Steel lower.
US Stocks: Futures trading higher
S&P 500 Index Futures are trading 2.0 points higher.
Key economic indicators scheduled for release today include ADP Employment Change, Factory Orders, MBA Mortgage Applications, Chicago Purchasing Managers' Index, and Challenger Job Cuts.
Brown Forman,
Joy Global,
SAIC and
Oxford Industries are scheduled to announce their results today.
In after hours trade yesterday,
Lions Gate Entertainment declined 4.7 percent, after Carl Icahn and his son, Brett Icahn, agreed to sell their entire stake in the company, and both parties agreed to dismiss all outstanding litigation between them.
CardioNet plummeted 17.8 percent, after it received a civil investigative demand from the U.S. Justice Department concerning allegations that it might have used inappropriate diagnosis codes when submitting Medicare claims. Lower-than-expected second quarter revenue and earnings led
DryShips 11.7 percent lower.
PVH Corporation gained 2.7 percent, after it swung to a second quarter profit and boosted its full year revenue and earnings outlook. Better-than-expected second quarter profit and upbeat earnings forecast for the full year helped
Vera Bradley to surge 7.1 percent.
Yesterday, the S&P 500 index added 0.2 percent, after minutes from the last U.S. Federal Reserve (Fed) meeting bolstered expectations of additional measures to stimulate the economy.
Monster Worldwide rallied 21.5 percent, after a regulatory filing indicated that its three top executives had bought 87,237 shares.
PulteGroup and
Boeing climbed 7.1 percent and 2.2 percent, respectively, following broker upgrades.
Clorox advanced 2.8 percent, after Carl Icahn indicated that he would make a third buyout offer for the company.
Starbucks edged 1.2 percent higher, after it stated that it would begin offering its coffee in single-cup brewing K-Cups for Keurig coffee makers in November.
Bank of America retreated 3.2 percent, following objections by the Federal Deposit Insurance Corporation to its proposed $8.5 billion mortgage-bond settlement with investors.
European Stocks: Likely to open in the green
The DAX and CAC are expected to open 12 to 14 points higher.
Key economic indicators scheduled for release today include German Retail Sales and Unemployment Rate and Eurozone’s Consumer Price Index Estimate & Unemployment Rate.
Hermes International SCA, Vivendi SA,
Carrefour SA,
Aeroports De Paris SA,
Lagardere SCA,
Eiffage SA and
Eurazeo SA are scheduled to report their results later today.
The Financial Times Deutschland has reported that majority of members on
Metro AG’s supervisory Board have opposed extending the contract of the CEO, Eckhard Cordes, after October 2012, when it expires.
According to The Financial Times Deutschland, Osram, the lighting unit of
Siemens AG, is set to hike prices for energy-saving light bulbs and fluorescent tubes by an average of 20 percent to 25 percent, beginning 1 September 2011.
Schneider Electric has stated that it has successfully completed its cash tender offer to purchase all of the issued shares of Telvent. About 97 percent shares were successfully tendered in the offer.
Ericsson has expanded its managed services capabilities in China by opening a new global network operations center.
Intralot SA has reported a 95 percent drop in second quarter profit. Sales have fallen 8.8 percent to €285.5 million, while EBITDA has declined 8.6 percent to €33.6 million.
Macro Update
UK consumer confidence drops
Consumer confidence in the U.K. has declined to a four-month low of -31.0 in August, compared to a reading of -30.0 in July.
Japan’s industrial output disappoints
Industrial output in Japan has climbed 0.6 percent M-o-M in July, lower than market expectations, following a 3.8 percent rise in June.
Japan’s manufacturing PMI declines
Japan’s Nomura/JMMA manufacturing Purchasing Manager Index (PMI) has dropped to 51.9 in August, compared to 52.1 in July.
FOMC split on best policy tools
The minutes of the U.S. Fed meeting on 9 August 2011 have revealed that there was no clear consensus among officials about further policy tools to address growth.
Industrial production in South Korea rises
Industrial output in South Korea rose 3.8 percent Y-o-Y in July, following the 6.4 percent increase in the previous month.
Euro bonds look more likely, says Marek Belka
Marek Belka, Governor of the National Bank of Poland, has stated that “the longer it takes to resolve the situation in Greece”, the more likely would be the need for euro bonds to take care of the crisis.
Economic Calendar
|
Country
|
BST
|
Economic Indicator
|
Relevance
|
Consensus/*Actual
|
Previous
|
Frequency
|
|
UK
|
0:01
|
GfK Consumer Confidence Survey (Aug)
|
PP
|
-31.00*
|
-30.00
|
Monthly
|
|
Japan
|
0:15
|
Nomura/JMMA Manufacturing Purchasing Manager Index (Aug)
|
PP
|
51.90*
|
52.10
|
Monthly
|
|
Japan
|
0:50
|
Loans & Discounts Corp (YoY) (Jul)
|
P
|
-1.60%*
|
-1.80%
|
Monthly
|
|
Japan
|
0:50
|
Industrial Production (YoY) (Jul)
|
PP
|
-2.80%*
|
-1.70%
|
Monthly
|
|
Japan
|
2:30
|
Labour Cash Earnings (YoY) (Jul)
|
PP
|
-0.10%*
|
-0.70%
|
Monthly
|
|
Japan
|
5:00
|
Vehicle Production (YoY) (Jul)
|
P
|
-8.90%*
|
-13.90%
|
Monthly
|
|
Japan
|
6:00
|
Annualised Housing Starts (Jul)
|
PP
|
0.96 mn*
|
0.82 mn
|
Monthly
|
|
Japan
|
6:00
|
Housing Starts (YoY) (Jul)
|
PP
|
21.20%*
|
5.80%
|
Monthly
|
|
Japan
|
6:00
|
Construction Orders (YoY) (Jul)
|
P
|
5.70%*
|
6.00%
|
Monthly
|
|
Germany
|
7:00
|
Retail Sales (MoM) (Jul)
|
PP
|
-1.50%
|
6.30%
|
Monthly
|
|
Germany
|
8:55
|
Unemployment Rate s.a. (Aug)
|
PPP
|
7.00%
|
7.00%
|
Monthly
|
|
Eurozone
|
10:00
|
Consumer Price Index Estimate (YoY) (Aug)
|
PP
|
2.50%
|
2.50%
|
Monthly
|
|
Eurozone
|
10:00
|
Unemployment Rate (Jul)
|
PP
|
9.90%
|
9.90%
|
Monthly
|
|
US
|
12:00
|
MBA Mortgage Applications (W/E)
|
P
|
-
|
-2.40%
|
Weekly
|
|
US
|
12:30
|
Challenger Job Cuts (YoY) (Aug)
|
P
|
-
|
59.40%
|
Monthly
|
|
US
|
13:15
|
ADP Employment Change (Aug)
|
PP
|
103.00 K
|
114.00 K
|
Monthly
|
|
Canada
|
13:30
|
Gross Domestic Product Annualised (QoQ) (Q2)
|
P
|
0.00%
|
3.90%
|
Quarterly
|
|
Canada
|
14:00
|
Teranet/National Bank HPI (MoM) (Jun)
|
PPP
|
-
|
1.30%
|
Monthly
|
|
US
|
14:45
|
Chicago Purchasing Managers' Index (Aug)
|
P
|
53.50
|
58.80
|
Monthly
|
|
US
|
15:00
|
Factory Orders (MoM) (Jul)
|
PP
|
1.80%
|
-0.80%
|
Monthly
|
|
US
|
15:30
|
EIA Crude Oil Stocks Change (Barrels) (W/E)
|
P
|
|
-2.20 mn
|
Weekly
|
|
US
|
17:30
|
Fed's Lockhart Speaks on Economy in Lafayette, Louisiana
|
P
|
-
|
-
|
-
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
888 Holdings Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Bwin.party Digital Entertainment Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Chesnara Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Goldenport Holdings Inc
|
FTSE All Share
|
Interim
|
|
UK
|
IP Group Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Oxford BioMedica Plc
|
FTSE All Share
|
Interim
|
|
UK
|
Picton Property Income Limited
|
FTSE All Share
|
Interim
|
|
UK
|
Safestore Holdings Plc
|
FTSE All Share
|
Trading
|
|
France
|
Carrefour SA
|
CAC 40, Euro Stoxx 50
|
Q2 Earnings Release
|
|
France
|
Vivendi SA
|
CAC 40, Euro Stoxx 50
|
Interim
|
|
US
|
Joy Global Inc
|
S&P 500
|
Q3 Earnings Release
|
|
US
|
SAIC Inc
|
S&P 500
|
Q2 Earnings Release
|
Ex-Dividend Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
Capita Group Plc
|
FTSE 100
|
Interim Ex-Dividend
|
|
UK
|
John Wood Group Plc
|
FTSE 100
|
Interim Ex-Dividend
|
|
UK
|
Serco Group Plc
|
FTSE 100
|
Interim Ex-Dividend
|