08 February 2012 at 7:03 GMT
Forex Overnight: EUR trading mostly firmer
The EUR is trading higher against most of the major currencies early Wednesday amid market speculation that Greece is moving closer towards securing additional international aid. Markets are keeping an eye on headlines emerging from the scheduled meeting of the Greek Prime Minister, Lucas Papademos, with the heads of three political parties later today. At 6 am, the EUR has advanced 0.1 percent against the USD to trade at $1.3268, while it is trading almost flat against the GBP at £0.8342.
The JPY has declined 0.5 percent and 0.4 percent against the EUR and the USD, respectively, after data indicated that Japanese current account surplus in 2011 narrowed to its lowest level in 15 years.
The AUD has gained 0.1 percent against the USD, while the CAD has declined marginally against the USD.
UK Stocks: Expected to open firmer
The FTSE 100 is likely to open 3 to 5 points in the green.
No major economic indicators are scheduled for release today.
Reckitt Benckiser Group, International Power, Smurfit Kappa Group and Dunelm Group are scheduled to announce their results today.
BHP Billiton has reported that its first half profit declined 5.5 percent Y-o-Y to $9.94 billion, the first decline since 2009.
Rio Tinto has indicated that it would invest an additional $3.4 billion to expand its iron ore operations in Western Australia's Pilbara region.
Proxy adviser, Glass Lewis & Company, has urged investors to reject the resolution related to EasyJet’s remuneration structure at the company’s annual meeting later this month.
Misys has stated that it has entered into a merger agreement with Swiss software maker, Temenos Group AG, which will result in the former’s shareholders gaining a majority stake in the merged company.
Asia: Trading in the green
Asian markets are trading in positive territory, tracking overnight gains on Wall Street.
At 6 am, the Nikkei 225 index is trading 1.0 percent higher at 9,005.5. In Japan, Fujitsu, Panasonic Corporation and Renesas Electronics have rallied, amid reports that the companies are in discussions over merging their large-scale chip operations. TBK has soared, after it boosted its full year net income forecast. Elpida Memory has surged, following reports that it may offshore its low-end DRAM chip production to Taiwan. Toyota Motor has climbed, after it raised its revenue and net income guidance for the full year.
In Hong Kong, China Resources Land, Sun Hung Kai Properties and Agile Property Holdings have advanced, after Chinese central bank indicated that lenders must provide loans to first-home buyers. In South Korea, shipbuilding sector stocks, Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries have registered gains. In China, energy sector stocks, PetroChina and China Petroleum & Chemical are trading higher, after the Chinese government announced a hike in gasoline and diesel retail prices for the first time in 10 months.
US Stocks: Futures trading marginally higher
At 6 am, S&P 500 futures are trading 0.5 points in the green.
MBA Mortgage Applications is the key economic indicator scheduled for release today.
Cisco Systems, Visa, News Corporation, Time Warner, Prudential Financial, Reynolds American, Cognizant Technology Solutions, Prologis, IntercontinentalExchange, Moody’s Corporation, Sprint Nextel and Wyndham Worldwide are scheduled to announce their results today.
Western Union slumped 6.6 percent in after hours trading session on Tuesday, after it provided lower-than-expected full year earnings guidance. Panera Bread and Walt Disney shed 2.8 percent and 1.4 percent, respectively, after their quarterly revenues fell short of market estimates. A sharp decline in its second quarter non-GAAP earnings and downbeat non-GAAP earnings outlook for the full year led Silicon Graphics International to plummet 23.5 percent. Teekay Tankers tumbled 9.7 percent, amid news that it is planning to offer 15 million shares of Class A common stock in a public offering. On the other hand, Yahoo! Inc. added 0.8 percent, after it announced several management changes to the board. Better-than-expected fourth quarter results led Buffalo Wild Wings, Cerner and OpenTable to soar 14.1 percent, 6.6 percent and 5.1 percent, respectively.
The S&P 500 index added 0.2 percent in the regular trading session on Tuesday, amid reports that Greece has made progress on austerity measures to secure bailout package from international creditors. Upbeat fourth quarter results led Coca Cola Enterprises to edge 0.5 percent higher. The top gainer on the S&P 500 index, Sears Holdings Corporation, jumped 6.2 percent. Anadarko Petroleum Corporation rallied 5.2 percent, after its fourth quarter revenue and adjusted earnings exceeded market estimates. Harman International Industries and Yum! Brands rose 3.9 percent and 2.6 percent, respectively, after they reported strong quarterly results. Advanced Micro Devices gained 3.0 percent, after a broker upgraded its rating on the stock to “Buy” from “Neutral”. On the flip side, Leggett & Platt slumped 5.9 percent, after its fourth quarter earnings fell sharply. Emerson Electric retreated 2.7 percent, after it lowered its full year sales guidance. Gannett and Walgreens slipped 2.8 percent and 2.4 percent, respectively, following broker downgrades.
European Stocks: Likely to open in positive territory
The DAX and CAC are expected to open 14 to 20 points and 10 to 15 points higher, respectively.
Key economic indicators scheduled for release today include Swiss Unemployment Rate, German Trade Balance & Current Account Balance and French Central Government Balance & Bank of France Business Sentiment Index.
Sanofi SA, Statoil ASA, Syngenta AG, Telenor ASA, Skanska AB, Stora Enso Oyj, Nokian Renkaat Oyj, Faurecia SA and Vestas Wind Systems A/S are scheduled to report their results later today.
The Board of directors of Illumina Inc. have unanimously rejected Roche Holding AG’s $5.7 billion unsolicited takeover offer, saying that the company’s bid was inadequate.
Reuters has reported that the supervisory board of Daimler AG will extend the contract of Wolfgang Bernhard, currently a board member and deputy head of the Mercedes brand, by another five years in April.
The Financial Times Deutschland has reported that Deutsche Bank AG plans to shut down its Norisbank unit’s 100 branches and move the business online.
TAG Immobilien AG, which holds 93.2 percent stake in Bau-Verein zu Hamburg AG, has offered €4.50 per share for the remaining 6.8 percent stake.
Macro Update
UK shop price inflation declines
The British Retail Consortium has reported that the annual shop price inflation in the U.K. eased to 1.4 percent in January, the lowest level since March 2010, and compared to a 1.7 percent rate posted in the previous month.
US consumer credit climbs
On a seasonally adjusted basis, consumer credit in the U.S. increased by $19.3 billion in December, compared to a $20.4 billion rise posted in November.
Japanese current account surplus dips
Japanese current account surplus narrowed to ¥9.628 trillion in 2011, the lowest level in 15 years, and compared to a ¥17.170 trillion surplus posted in the previous year.
Bank lending in Japan rises
On an annual basis, overall bank lending in Japan edged 0.7 percent higher in January, compared to a 0.5 percent increase recorded in December.
South Korean first half growth likely to be less than 1.0 percent, warns Bahk Jae-wan
South Korean Finance Minister, Bahk Jae-wan cautioned that the sequential economic growth in the first half of 2012 will likely be less than 1.0 percent.
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