Market Preview: EU finance ministers meeting eyed

Forex Overnight: EUR trading under pressure

The EUR has weakened against the major currencies this morning on fears that Spain might postpone seeking a bailout amid political uncertainty in the region. Meanwhile, market participants keenly await the Euro-area finance ministers meeting scheduled in Brussels later today to discuss the Greek aid package. At 6 am GMT, the EUR has declined 0.2 percent and 0.1 percent versus the USD and the GBP to trade at USD 1.2955 and GBP 0.8087, respectively.

The JPY has strengthened 0.4 percent and 0.1 percent against the EUR and the USD, respectively. The minutes of the Bank of Japan’s (BoJ) latest monetary policy meeting revealed that the central bank would continue with its monetary easing stance.

The AUD has weakened 0.1 percent versus the USD.

UK Stocks: Likely to open in the red

The FTSE 100 is expected to open 8 to 12 points in negative territory.

No key economic indicators are scheduled for release today.

Aberdeen Asset Management, Cranswick, Quintain Estates & Development, GB Group, Immunodiagnostic Systems Holdings and Infrastrata are scheduled to report their results today.

According to media reports, BP is in initial talks with OAO Gazprom over an extension of the Nord Stream Gas Pipeline to carry gas from Germany into the UK.

GlaxoSmithKline has stated that it plans to increase its holding in its Indian unit, GlaxoSmithKline Consumer Healthcare Limited, to 75.0 percent from 43.2 percent through an open offer priced at INR 3,900.0 per share.

The Sunday Telegraph has reported that Royal Bank of Scotland is facing the increasing possibility of having to settle separately with the UK and the US authorities investigating its involvement in the global interest rate fixing scandal.

Asia: Trading mixed

Asian markets are trading mixed this morning.

In Japan, Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group have added value after the minutes of the BoJ’s latest monetary policy meeting indicated that the monetary easing stance would continue. Kansai Electric Power and Kyushu Electric Power are trading higher amid reports that they are seeking a hike in household electricity rates. Exporters to the US, Toyota Motor, Honda Motor and Canon have advanced on the back of higher US consumer spending during the Thanksgiving weekend. On the flipside, Sony and Panasonic have edged lower after Fitch downgraded its debt rating on both the companies to “junk” status on Friday. At 6 am GMT, the Nikkei 225 has advanced 0.3 percent to trade at 9,398.5.

In China, Hebei Iron & Steel and Maanshan Iron & Steel have gained value amid market expectations that the steel industry might perform better in the current quarter. On the contrary, Air China has lost value. China National Aviation Holding Company, its controlling shareholder, raised its stake in the company. In South Korea, Ahnlab has slumped after Ahn Cheol-soo, its largest shareholder and independent presidential candidate, moved out of the Presidential race late Friday. In Hong Kong, China Petroleum & Chemical and China Unicom Hong Kong have edged down.

US Stocks: Futures trading weak

At 6 am GMT, S&P 500 futures are trading 5.2 points lower.

Chicago Federal Reserve National Activity Index and Dallas Federal Reserve Manufacturing Activity Index are the key economic indicators scheduled for release today.

Berry Plastics Group, Hillenbrand and Bazaarvoice are slated to report their results later today.

Magellan Midstream Partners reversed its regular session gains and retreated 8.4 percent in the after hours trading session on Friday. Aeropostale declined 3.7 percent ahead of its third quarter results due later this week wherein it is expected to report a decline in its quarterly earnings. Accuride, Affymetrix and InvenSense featured amongst the other major laggards, plummeting 8.4 percent, 7.7 percent and 5.9 percent, respectively. On the contrary, pharmaceutical sector stocks, Navidea Biopharmaceuticals, Nektar Therapeutics, PDL BioPharma and AcelRx Pharmaceuticals featured amongst the key gainers, rising 7.5 percent, 4.6 percent, 3.8 percent and 2.0 percent, respectively.

On Friday, the S&P 500 index gained 1.3 percent in the regular trading session on the back of upbeat German Ifo sentiment data. Technology sector stocks, Dell, Advanced Micro Devices and Hewlett-Packard surged 5.4 percent, 4.3 percent and 4.2 percent, respectively. Retail sector stocks, Bed Bath & Beyond and Macy's advanced 2.1 percent and 1.8 percent, respectively, amid optimism over sales during the US holiday shopping season. Wal-Mart Stores climbed 1.9 percent following upbeat comments by the retailer relating to its sales on Thanksgiving Day. On the downside, Cablevision Systems declined 0.6 percent after a broker lowered its price target on the stock. Exelon, Edison International and Wisconsin Energy featured amongst the other major laggards, losing 1.0 percent, 0.8 percent and 0.7 percent, respectively.

European Stocks: Expected to open lower

The DAX and the CAC are likely to open 15 to 20 points and 13 to 15 points in the red, respectively.

German GfK Consumer Confidence Survey, Italian Consumer Confidence, Swiss Employment Level and Spanish Mortgages on Houses are the major economic indicators scheduled for release today. Additionally, market participants are keeping an eye on the Euro-area finance ministers meeting slated later today.

Generix SA is scheduled to report its result later today.

Rajeev Suri, the CEO of Nokia Siemens Networks, a joint venture owned by Nokia Oyj and Siemens AG, has indicated that it is focusing on the US market and is abstaining from less lucrative deals in Africa and the Middle East.

Nokia Oyj has announced the resignation of Damian Dinning, the Chief of Nokia’s imaging unit, at the end of the current month.

Carlos Ghosn, the CEO of Renault SA, has stated that the company anticipates Brazil’s automobile market to expand at a slower pace of 2.0 percent in 2013, citing the new auto industry rules coming into effect and the end of tax breaks.

Sueddeutsche Zeitung has reported that ThyssenKrupp AG is planning a cost reduction programme of around EUR 2.0 billion over the next three years.

Macro Update
Central bank would continue monetary easing, indicates BoJ minutes
The minutes of the BoJ's latest monetary policy meeting has indicated that the central bank would go ahead with its monetary easing stance until the inflation target of 1.0 percent is at least “in sight”, if not achieved.

Shirakawa urges for deregulation, fiscal reform
Masaaki Shirakawa, the Governor of the BoJ, has urged the government to continue to take efforts to restore the nation’s fiscal health and take measures to spur domestic investment through decisive deregulation.

South Korea’s consumer confidence unexpectedly rises
The consumer sentiment index in South Korea has surprisingly climbed to a reading on 99.0 in November from a reading of 98.0 posted in October.

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