Article / 27 February 2012 at 7:31 GMT

Market Preview - 27 February 2012

Saxo Capital Markets UK
United Kingdom

Forex Overnight: EUR trading flat
The EUR is trading almost unchanged against the major currencies early Monday ahead of the outcome of the German lawmakers’ vote on a second bailout package for Greece later today. Meanwhile, Zhou Xiaochuan, the Governor of People’s Bank of China, has stated that China’s monetary policy authority would be willing to boost the International Monetary Fund’s (IMF) lending resources. At 6 am, the EUR is trading flat against the USD and the GBP at $1.3447 and £0.8478, respectively.
The JPY has advanced 0.1 percent each against the USD and the EUR.
The AUD has declined 0.1 percent against the USD. Australian Prime Minister, Julia Gillard, defeated predecessor, Kevin Rudd, in the Labour Party leadership ballot today.

UK Stocks: Expected to open lower
The FTSE 100 is likely to open 10 to 14 points in the red.
No major economic indicators are scheduled for release today.
HSBC Holdings, Pearson, Bunzl, Cookson Group and Bovis Homes Group are scheduled to announce their results today.
BP has stated that the civil trial over the Gulf of Mexico oil spill has been adjourned for a week so as to enable the company to continue settlement talks with individuals and businesses affected by the disaster.
The Financial Times has reported that Lloyds Banking Group and Royal Bank of Scotland might access the European Central Bank’s three year, low interest loans facility, this week.
Prudential has indicated that it is considering moving its headquarters from London to escape negative implications of the upcoming new capital rules for European insurers, called Solvency II.
Vedanta Resources has stated that it would combine its Indian units, Sesa Goa and Sterlite Industries, into a new company named Sesa Sterlite.

Asia: Trading mixed
Asian markets are trading mixed.
In Japan, Parco Company has surged, after J Front Retailing Company agreed to acquire 33.0 percent stake in the company. Fujitsu has advanced, amid reports that the company along with Mitsui & Company would set up a community venture in Japan. Tokyo Dome Corporation is trading higher, after it posted a preliminary net income for the full year ended 31 January 2012, beating its prior guidance for a loss. On the other hand, Softbank Corporation has declined, following reports that the company plans to hire as many as 2,400 additional employees. At 6 am, the Nikkei 225 index is trading 0.2 percent lower at 9,630.5.
In Hong Kong, resources sector stocks, PetroChina Company and Aluminum Corporation of China have advanced, on the back of firmer commodity prices. In South Korea, Himart Company has plunged, after it stated that prosecutors have confiscated documents and a computer during a raid on the company’s headquarters. Korean Air Lines has slumped, following gains in crude oil prices. In China, Dongfeng Automobile and Anhui Jianghuai Automobile have rallied, after the Chinese government indicated that it included only domestic brands in its official vehicle purchases this year.

US Stocks: Futures trading weaker
At 6 am, S&P 500 futures are trading 1.9 points in the red.
Pending Home Sales and Dallas Fed Manufacturing Activity Index are the key economic indicators scheduled for release today.
Lowe’s Companies, Priceline.com, El Paso Corporation, Southwestern Energy and AES Corporation are scheduled to announce their results today.
In after hours trading session on Friday, MetroPCS Communications rallied 7.7 percent, amid news that Sprint Nextel Corporation cancelled its plans to acquire the company. Vocus, Gray Television, EarthLink and Idenix Pharmaceuticals featured amongst other major gainers, rising 4.0 percent, 3.9 percent, 3.0 percent and 2.8 percent, respectively. Flagstar Bancorp slumped 9.3 percent, after it agreed to pay up to $132.8 million to settle claims that its mortgage unit engaged in fraudulent lending practices. FairPoint Communications retreated 1.8 percent, after Standard & Poor’s revised its outlook on the stock to “Negative” from “Stable”. Amongst other key laggards, Interpublic Group of Companies, Tenet Healthcare and Charles Schwab declined 6.1 percent, 2.7 percent and 2.5 percent, respectively.
On Friday, the S&P 500 index added 0.2 percent in the regular trading session, following upbeat consumer sentiment and new home sales data in the U.S. Sears Holdings, the top gainer on the S&P 500 index, rallied 10.5 percent. Salesforce.com soared 9.0 percent, after its revenue and adjusted earnings for the fourth quarter exceeded market forecast. Interpublic Group of Companies jumped 6.5 percent, after it reported buoyant earnings for the fourth quarter and announced a share buyback program worth $300.0 million. American International Group gained 1.5 percent, after it reported a significant rise in its fourth quarter profit. On the flip side, Gap declined 4.0 percent, after it guided to a lower-than-expected profit for the full year. Banking sector stocks, Morgan Stanley, Bank of America and Wells Fargo edged 2.5 percent, 1.8 percent and 1.5 percent lower, respectively.

European Stocks: Likely to open lower
The DAX and CAC are expected to open 19 to 26 points and 8 to 11 points in the red, respectively.
French Producer Prices and Eurozone M3 Money Supply are the key economic indicators scheduled for release today.
Acciona SA, PostNL NV and Abengoa SA are scheduled to report their results today.
In an interview to Automotive News Europe, Wolfgang Duerheimer, the Chief of Volkswagen AG’s Bentley brand, has stated that the company plans to double its sales of Bentley cars by 2017.
Sueddeutsche Zeitung has reported that Deutsche Bank AG will not approve the €812.0 million damages payment to the heirs of Leo Kirch, a German media entrepreneur.
In an interview to SonntagsZeitung, Michel Lies, the CEO of Swiss Reinsurance, has stated that the company is “growing organically” and is currently not focusing on acquisitions.
Italian newspaper, Corriere della Sera, has reported that Fiat SpA and Russian state bank, OAO Sberbank, have agreed to form an alliance to build vehicles under the Jeep brand in Russia.
According to Radiocor, Clessidra investment fund is near to buying about 5.0 percent stake in Banca Monte dei Paschi di Siena SpA from the bank’s largest investor, Fondazione Monte dei Paschi.

Macro Update
G20 draft says firewall "essential" for IMF boost
According to Reuters, Group of 20 countries (G20) considers a Eurozone decision to boost their firewall as "essential" before an agreement to boost resources for the IMF.
UK home prices flat
Hometrack has reported that on a monthly basis, average house prices in the U.K. remained flat in February for the second consecutive month.
More QE unlikely if no economic contraction, says Fisher
Bank of England policymaker, Paul Fisher, has indicated that the central bank is unlikely to resort to more Quantitative Easing (QE) if the British economy stayed on its current path and did not contract over the next few months.
China at "turning point", needs reforms, says World Bank
The World Bank and the Development Research Center of China's State Council have stated that China needs reforms to turn itself from a middle-income country to a high-income country as it has "now reached a turning point". The report also indicated that China's economic growth will gradually decline through year 2030.
New Zealand swings to trade deficit
New Zealand’s merchandise trade deficit stood to NZ$199.0 million in January, compared to a downwardly revised surplus of NZ$306.0 million posted in December.

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous

Frequency

UK

0:01

Hometrack Housing Survey (MoM) (Feb)

Low

0.00%*

0.00%

Monthly

UK

0:01

Hometrack Housing Survey (YoY) (Feb)

Low

 -1.40%*

-1.60%

Monthly

France

7:45

Producer Prices (MoM) (Jan)

Low

0.40%

-0.10%

Monthly

France

7:45

Producer Prices (YoY) (Jan)

Low

4.10%

4.70%

Monthly

Eurozone

9:00

M3 Money Supply (3M) (Jan)

Low

-

2.10%

Monthly

Eurozone

9:00

M3 Money Supply (YoY) (Jan)

Low

-

1.60%

Monthly

Eurozone

9:00

Private Loans (YoY) (Jan)

Medium

1.20%

1.00%

Monthly

US

15:00

Pending Home Sales (MoM) (Jan)

Medium

1.00%

-3.50%

Monthly

US

15:00

Pending Home Sales (YoY) (Jan)

Medium

-

4.40%

Monthly

US

15:30

Dallas Fed Manufacturing Activity (Feb)

Low

15.90

15.30

Monthly

Japan

23:50

Retail Trade s.a. (MoM) (Jan)

Low

1.00%

0.30%

Monthly

Japan

23:50

Retail Trade (YoY) (Jan)

Medium

-0.10%

2.50%

Monthly

Japan

23:50

Large Retailers' Sales (Jan)

Medium

-1.10%

-0.30%

Monthly


Click here to view today's economic calendar

Corporate Calendar

Country

Company Name

Index

Announcement

UK

Associated British Foods Plc

FTSE All Share

Trading

UK

Bovis Homes Group Plc

FTSE All Share

Prelim

UK

Bunzl Plc

FTSE All Share

Final

UK

Cookson Group Plc

FTSE All Share

Prelim

UK

Dialight Plc

FTSE All Share

Prelim

UK

Essar Energy Plc

FTSE All Share

Trading

UK

Hiscox Ltd

FTSE All Share

Final

UK

HSBC Holdings Plc

FTSE All Share

Final

UK

Keller Group Plc

FTSE All Share

Prelim

UK

Pearson Plc

FTSE All Share

Prelim

UK

Senior Plc

FTSE All Share

Prelim

UK

Ultra Electronics Holdings Plc

FTSE All Share

Prelim

UK

WSP Group Plc

FTSE All Share

Prelim

US

AES Corpoartion

S&P 500

Q4 Earnings Release

US

El Paso Corporation

S&P 500

Q4 Earnings Release

US

Lowe's Companies Inc.

S&P 500

Q4 Earnings Release

US

Priceline.com Inc.

S&P 500

Q4 Earnings Release

US

Southwestern Energy Company

S&P 500

Q4 Earnings Release

 

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Show latest activity
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail