UK Stocks: Expected to open in the red
The FTSE 100 is expected to open 69 to 70 points in negative territory following Asia's lead and the news, in US after hours trade Friday, that the U.S. Federal Housing Finance Agency will sue 17 large banks, alleging violations of laws in the sale of mortgage-backed securities to government-sponsored enterprises.
Key economic indicators scheduled for release today include Services PMI and Change in Official Reserves.
US markets are closed.
Kofax,
Fyffes,
Staffline Group,
Brady and
Hydrogen Group are scheduled to report their results later today.
According to Bloomberg,
Royal Dutch Shell has returned workers to some oil and natural gas platforms in the Gulf of Mexico, as the threat from the tropical storm, Lee, has receded.
British American Tobacco has indicated that it would again pursue the Australian government through the courts, to force it to release the legal advice given to it, in its decision to implement plain packaging on cigarette packets.
The Financial Times has reported that
Lloyds Banking Group could sell up to one third more current accounts to ease pressure on it to raise the number of branches it must divest, following the government bailout.
According to Reuters, Colfax Corporation has indicated that it is “in preliminary discussions” to make an all-cash offer for
Charter International.
Asia: Trading in negative territory
Dismal jobs data in the U.S. and continuing concerns over Eurozone’s sovereign-debt crisis are weighing on Asian markets this morning.
In Japan,
Nomura Holdings has declined sharply, after it was sued by the U.S. Federal Housing Finance Agency for allegedly misrepresenting material information, when selling mortgage-backed securities.
Fast Retailing has lost value, following a decline in same-store sales in August at its Uniqlo casual clothing stores.
Komatsu Limited has declined, after a broker downgraded its recommendation on the stock to “Hold” from “Buy”. At 6 am, the Nikkei has lost 1.9 percent to 8,780.5.
In South Korea, markets are trading in the red.
Samsung Electronics has dropped, after it lost a chance to showcase its latest tablet computer at the IFA consumer-electronics show. In Hong Kong,
Cnooc Limited has declined sharply, after oil leaks at a field operated by its partner, ConocoPhillips, forced the company to slash its output estimate. In China,
Shenzhen Development Bank has edged lower, amid news that new reserve requirements for 14 listed banks might increase by about CNY 700.0 billion over the next six months.
US Stocks: Futures trading weaker
At 6 am, S&P 500 Index Futures are trading 8.8 points lower. Markets are closed today on account of a holiday for Labour Day.
No economic and corporate releases are scheduled for today.
In after hours trade on Friday, financial sector stocks extended their regular session losses, after news that the U.S. Federal Housing Finance Agency had sued 17 large banks, alleging violations of laws in the sale of mortgage-backed securities to government-sponsored enterprises.
First Horizon National fell 1.1 percent, while
Morgan Stanley dropped 0.6 percent. Among the other key losers,
Martha Stewart Living Omnimedia,
P.F. Chang's China Bistro and
Lender Processing Services declined 7.4 percent, 4.8 percent and 4.4 percent, respectively.
Mueller Water Products,
Perry Ellis International and
Rue21 featured amongst major gainers, soaring 15.0 percent, 11.2 percent and 9.6 percent, respectively.
On Friday, the S&P 500 index declined 2.5 percent in the regular trading session, after Labour Department indicated that no jobs were added in August, thereby raising concerns over the possibility of another recession in the U.S.
H&R Block plummeted 11.7 percent, after it reported lower-than-expected revenue and a higher loss for the first quarter.
Netflix slumped 8.6 percent, after Starz Entertainment LLC indicated that it has ended contract renewal talks with the company. Banking sector stocks were the hardest hit, after the Federal Housing Finance Agency filed charges against major banks over sale of mortgage securities, with
Bank of America,
Suntrust Banks,
Morgan Stanley and
Citigroup falling 8.3 percent, 5.8 percent, 5.7 percent and 5.3 percent, respectively.
European Stocks: Likely to open lower
The DAX and CAC are expected to trade 60 to 79 points and 54 to 55 points, in the red, respectively, at open.
German and French Services PMI and Eurozone’s Services PMI & Retail Sales are scheduled for release today.
Seche Environnement SA,
Assystem SA,
Tessi SA,
Audika Groupe SA and Radiall SA are scheduled to report their results later today.
Chairman of
Eni SpA, Giuseppe Recchi, has announced that he expects the production at its Kazakhstan plant to start by the end of 2012, and confirmed the company's 2011 growth targets.
Macarthur Coal has recommended its shareholders to accept the takeover bid for the company from PEAMCoal Pty, owned jointly by Peabody Energy and
ArcelorMittal SA.
Bayerische Motoren Werke AG has stated that it has felt no negative impact from the recession fears, and is sticking to its 2011 vehicle sales outlook, following a sales growth of about 7.0 percent in August.
The Financial Times has reported that securities packaged by Deutsche
Bank AG are among half a dozen deals being probed by Britain's Serious Fraud Office (SFO).
The U.S. government has asked the Swiss government for detailed figures relating to tax evasion at
Credit Suisse Group AG and nine other smaller Swiss banks, by Tuesday.
According to the Financial Times, the German government is preparing to acquire a stake in
European Aeronautic Defence and Space Co NV (EADS).
Leoni AG has agreed to acquire the remaining 50.0 percent stake in South Korean wiring systems maker, Daekyeung, ahead of schedule, on 1 January 2012.
Forex Overnight: EUR trading lower
The EUR is trading under pressure against the major currencies, after German Chancellor, Angela Merkel’s party suffered an election defeat in her home state, fuelling concerns that support for bailouts of the peripheral states in the Eurozone would fade. At 6 am, the EUR has declined 0.3 percent against the USD to trade at $1.4165, and has also lost marginally against the GBP, at £0.8757. The GBP has weakened 0.2 percent against the USD, at $1.6177.
The JPY is trading 0.1 percent and 0.3 percent, higher, against the USD and the EUR, respectively. This is despite the Japanese Finance Minister, Jun Azumi, stating yesterday that the government is ready to take decisive action against speculative moves in the foreign-exchange markets.
The AUD has lost 0.5 percent against the USD, following a decline in Australian investor confidence index in the third quarter of 2011.
Macro Update
Implementation of Italy's deficit reduction steps 'absolutely decisive', says Trichet
The European Central Bank President, Jean Claude Trichet, has stated that the measures announced by the Italian government on 5 August 2011, to slash its huge public deficit, are required to improve the flexibility of the Italian economy.
Barroso says Greece will meet its commitments
The President of the European Commission, Jose Manuel Barroso, has indicated that Greece would meet its commitments, and that he is not expecting a recession in Europe.
Greece assures no split with EU-IMF auditors
Greek Finance Minister, Evangelos Venizelos, has insisted that there was no rift with EU and IMF auditors, who have complained that Greece had failed to meet the conditions to unlock more rescue funding.
Australian investor confidence slumps
The Australian investor confidence index has dropped to a reading of -21.7 in the third quarter of 2011, the lowest level since the first quarter of 2009, and compared to reading of -6.0 in the previous quarter.
Australian service sector expands
The Australian services index has climbed to a reading of 52.1 in August, following a reading of 48.8 in the previous month.
Economic Calendar
|
Country
|
BST
|
Economic Indicator
|
Relevance
|
Consensus/
*Actual
|
Previous
|
Frequency
|
|
UK
|
0:01
|
Lloyds Employment Confidence (Aug)
|
P
|
-66.00*
|
-53.00
|
Monthly
|
|
France
|
8:50
|
Services Purchasing Manager Index (Aug)
|
P
|
56.10
|
56.10
|
Monthly
|
|
Germany
|
8:55
|
Services Purchasing Manager Index (Aug)
|
PP
|
50.40
|
50.40
|
Monthly
|
|
Eurozone
|
9:00
|
Composite Purchasing Manager Index (Aug)
|
PP
|
50.90
|
51.10
|
Monthly
|
|
Eurozone
|
9:00
|
Services Purchasing Manager Index (Aug)
|
PP
|
51.50
|
51.50
|
Monthly
|
|
UK
|
9:30
|
Official Reserves (Changes) (Aug)
|
P
|
-
|
$2082.00 mn
|
Monthly
|
|
UK
|
9:30
|
Services Purchasing Manager Index (Aug)
|
PP
|
54.00
|
55.40
|
Monthly
|
|
Eurozone
|
9:30
|
Sentix Investor Confidence (Sep)
|
PP
|
-17.70
|
-13.50
|
Monthly
|
|
Eurozone
|
10:00
|
Retail Sales (MoM) (Jul)
|
PPP
|
0.00%
|
0.70%
|
Monthly
|
|
Eurozone
|
10:00
|
Retail Sales (YoY) (Jul)
|
PPP
|
-1.00%
|
-0.70%
|
Monthly
|
|
US
|
-
|
Labour Day
|
|
-
|
-
|
-
|
|
Canada
|
-
|
Labour Day
|
|
-
|
-
|
-
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
|
Country
|
Company Name
|
Index
|
Announcement
|
|
UK
|
Kofax Plc
|
FTSE All Share
|
Prelim
|