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Ole Hansen
Brent Oil is used as the benchmark for more than half of all global transactions but only a bit more than one percent originates from the four production sites which make up the benchmark.
Article / 06 September 2011 at 6:04 GMT

Market Preview - 6 September 2011

SaxoBankUK SaxoBankUK
Saxo Capital Markets UK
United Kingdom
UK Stocks: Expected to open in the red
The FTSE 100 is expected to open 22 to 48 points weaker amid continuing concersn of the Eurozone sovereign debt situation.
No economic updates are scheduled for release today.
Ashtead Group, Genus, Dechra Pharmaceuticals, McBride and Lupus Capital are scheduled to release their results today.
Royal Dutch Shell has stated that high winds and rough seas are preventing it from restaffing and restarting the Gulf of Mexico operations, south of Louisiana, in the wake of Tropical Storm Lee.
Rio Tinto Group and Anglo American have announced that they aim to sell their 75 percent jointly held stake in Palabora Mining Company, as it no longer fits their investment objectives.
According to Reuters, Macquarie Group is planning to bid for the $6.0 billion aircraft leasing business being sold by the Royal Bank of Scotland.
The Financial Times has reported that Sir Stelios Haji-Ioannou, the founder of easyJet, has called for the removal of Rigas Doganis, a Non-Executive Director, from the board of the company.

Asia: Trading weaker
Persistent worries over the Eurozone debt crisis is weighing on Asian markets this morning.
In Japan, Toshiba Corporation has dropped sharply, amid news that it is in talks to increase its stake in Westinghouse Electric, a nuclear reactor builder. Mitsubishi UFJ Financial Group has lost value, following an increase in the cost of insuring against default on European sovereign and financial debt. At 6 am, the Nikkei has declined 2.1 percent to trade at 8,600.5.
In South Korea, despite markets trading in the red, Kia Motors has climbed, after a broker upgraded its rating to “Buy”. In Hong Kong, China Merchants Bank has retreated, after it received an approval from the state-owned Assets Supervision and Administration Commission for a planned rights issue. Cnooc Limited has extended yesterday’s losses and is trading lower, amid news that it has halted operations at one of its key oil fields. In China, Anhui Conch Cement and Sany Heavy Industry have declined, amid fears that slowing investment in housing and railways might curb demand for building materials.

US Stocks: Futures trading in negative territory
At 6 am, S&P 500 Index Futures are trading 30.7 points lower.
ISM Non-Manufacturing Composite is scheduled for release today.
Altera Corporation, VeriFone Systems, Pike Electric Corporation and FuelCell Energy are scheduled to announce their results today.
Markets were closed yesterday, on account of a holiday for Labour Day.

European Stocks: Likely to open in the red
The DAX and CAC are likely to trade 11 to 43 points and 18 to 43 points weaker, at open, respectively.
Key economic indicators scheduled for release today include German Factory Orders, Eurozone’s GDP, Gross Fixed Capital, Household Consumption & Government Expenditure and Swiss CPI & Foreign Currency Reserves.
Boiron SA, Medica SA and Transgene SA are scheduled to report their results later today.
According to Bloomberg, Deutsche Telekom AG has indicated that it would work with AT&T on any conditions to be attached to the sale of T-Mobile USA, and would also join AT&T in court to defend the transaction, if required.
Handelsblatt has reported that Martin Blessing, the CEO of Commerzbank AG, has stated that he does not expect the bank to become a takeover target for another bank.
Roche Holding AG has stated that it would pay $10.0 million to Evotec AG for the right to develop Evotec’s EVT 302 compound for Alzheimer’s disease.
In an interview with Boersen-Zeitung, Axel Theis, the division Chief of Allianz SE, has indicated that the company might focus on Brazil for further growth at its industrial unit.
Dexia SA has appointed Jos Clijsters as the Chairman of the Board at Dexia Bank Belgium, following the departure of Stefaan Decraene.

Forex Overnight: EUR trading lower
The EUR is trading lower against its major counterparts this morning, amid market expectations that data scheduled to be released later today, would indicate a decline in German factory orders in July. Coupled with this, Finland’s Finance Minister, Jutta Urpilainen, is meeting her German and Dutch counterparts today, to discuss the Finnish demand for collateral. At 6 am, the EUR has weakened 0.3 percent against the USD to trade at $1.4060, and has lost marginally against the GBP to trade at £0.8744. 
The AUD has weakened 0.4 percent against the USD, after the Reserve Bank of Australia (RBA) retained its benchmark interest rate, and following wider-than-expected current-account deficit in the second quarter.
At 6 am, the JPY is trading 0.1 percent and 0.4 percent higher against the USD and the EUR, respectively.

Macro Update
RBA retains its key interest rate
The RBA has held its cash rate steady at 4.75 percent.
Australia’s current account deficit narrows
Australia's current-account deficit narrowed to A$7.42 billion in the April-June quarter, compared to an upwardly revised A$11.12 billion deficit posted in the previous quarter.
Infrastructure spending key component of jobs plan, says Obama
Prior to the announcement of the jobs agenda on 8 September 2011, the U.S. President, Barack Obama, has stated that new infrastructure spending is a key component of his plan to reignite the economy and boost hiring.
UK retail sales ease
On an annual basis, like-for-like retail sales in the U.K. fell 0.6 percent in August, compared to a 0.6 percent rise posted in the previous month.
South Korean GDP expands
On a sequential basis, South Korea’s Gross Domestic Product (GDP) grew 0.9 percent in the second quarter of 2011, compared to the previously estimated 0.8 percent rise.

Economic Calendar

Country

BST

Economic Indicator

Relevance

Consensus/*Actual

Previous

Frequency

UK

0:01

BRC Sales Like-for-Like (YoY) (Aug)

P

 -0.60%*

0.60%

Monthly

Switzerland

8:00

Foreign Currency Reserves (Aug)

P

 -

182.10 bn

Monthly

Switzerland

8:15

Consumer Price Index - Harmonised (MoM) (Aug)

PP

 -

-0.80%

Monthly

Switzerland

8:15

Consumer Price Index - Harmonised (YoY) (Aug)

PP

 -

0.30%

Monthly

Switzerland

8:15

Consumer Price Index (MoM) (Aug)

PP

-0.20%

-0.80%

Monthly

Switzerland

8:15

Consumer Price Index (YoY) (Aug)

PP

0.30%

0.50%

Monthly

Eurozone

10:00

Gross Domestic Product s.a. (QoQ) (2Q)

PPP

0.20%

0.20%

Quarterly

Eurozone

10:00

Gross Domestic Product s.a. (YoY) (2Q)

PPP

1.70%

1.70%

Quarterly

Eurozone

10:00

Gross Fixed Capital (QoQ) (2Q)

PP

0.80%

1.90%

Quarterly

Eurozone

10:00

Household Consumption (QoQ) (2Q)

PP

-0.10%

0.20%

Quarterly

Eurozone

10:00

Government Expenditure (QoQ) (2Q)

P

0.10%

0.50%

Quarterly

Germany

11:00

Factory Orders s.a. (MoM) (Jul)

PP

-1.50%

1.80%

Monthly

Germany

11:00

Factory Orders n.s.a. (YoY) (Jul)

PP

9.80%

9.50%

Monthly

US

15:00

ISM Non-Manufacturing Composite (Aug)

PP

51.00

52.70

Monthly

US

18:10

Fed's Kocherlakota Speaks at University of Minnesota

P

 -

 -

-


Note: PPPHigh           PPMedium           PLow


Corporate Calendar

Country

Company Name

Index

Announcement

UK

Ashtead Group Plc

FTSE All Share

Q1 Earnings Release

UK

Betfair Group Plc

FTSE All Share

Trading

UK

Dechra Pharmaceuticals Plc

FTSE All Share

Prelim

UK

DS Smith Plc

FTSE All Share

Trading

UK

Genus Plc

FTSE All Share

Prelim

UK

McBride Plc

FTSE All Share

Prelim

US

Altera Corporation

S&P 500

Q3 Earnings Release

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