TV

Lea Jakobiak
On the eve of a keynote speech by the ECB President, Mario Draghi, one leading economist doesn't hold back in the way he believes the Bank has dealt with the eurozone's faltering recovery.
Article / 28 November 2012 at 7:08 GMT

Market Preview: Focus on German CPI data

SaxoBankUK SaxoBankUK
Saxo Capital Markets UK
United Kingdom

Forex Overnight: EUR trading weak
Currencies Intraday
The EUR is trading under pressure against its major peers this morning as continuing concerns over the US “fiscal cliff” prompted traders to seek shelter in safe haven currencies. Additionally, fears that Greece might falter on its bond buy back programme have dented market sentiment. Meanwhile, investors are keeping an eye on German consumer price inflation data for November scheduled for release later today. At 6 am GMT, the EUR has declined 0.2 percent against the USD to trade at USD 1.2926 while it is trading almost unchanged versus the GBP at GBP 0.8079.

The JPY has strengthened 0.5 percent and 0.3 percent against the EUR and the USD, respectively, as risk appetite amongst investors declined.

The AUD and the CAD are trading mostly flat versus the USD.

UK Stocks: Likely to open lower
FTSE 100
The FTSE 100 is expected to open flat to 15 points in the red.

No key economic indicators are scheduled for release today.

United Utilities Group, Daejan Holdings, Thomas Cook Group, Vp Plc and Torotrak are scheduled to report their results later today.

A lawyer for BP has entered a not-guilty plea for the company as it appeared before a federal court in New Orleans to answer charges arising from the 2010 rig explosion and massive oil spill in the Gulf of Mexico.

Asia: Trading in the red
Nikkei 225
Asian markets are trading in negative territory this morning tracking overnight losses on Wall Street.

In Japan, Kawasaki Kisen Kaisha Limited has declined after it postponed an expansion of its commodity transport fleet. Hulic Company has lost value amid news that it plans to raise about JPY 37.0 billion in a public share sale. Gree has edged down after a broker lowered its price target on the stock. On the other hand, I'rom Holdings has surged after it hiked its full year net profit outlook. DeNA Company has edged up after a broker raised its price target on the stock. At 6 am GMT, the Nikkei 225 has declined 1.1 percent to trade at 9,318.5.

In China, Citic Securities and Haitong Securities have dropped after data indicated a decline in the number of yuan denominated A-share trading account transactions last week. Zhongjin Gold Company has declined tracking lower gold prices. In Hong Kong, CNOOC has lost value after the company along with its Canadian takeover target, Nexen, withdrew and resubmitted an application for the US approval of their deal. In South Korea, Korea Aerospace Industries has dropped after its largest shareholder postponed the final bids for an estimated USD 1.1 billion stake in the company to December 2012.

US Stocks: Futures trading lower
S&P 500
At 6 am GMT, S&P 500 futures are trading 1.4 points in negative territory.

New Home Sales and MBA Mortgage Applications are the key economic indicators scheduled for release today. Investors are also keeping an eye on the Federal Reserve’s (Fed) Beige Book Economic Survey due later today.

Pall Corporation, American Eagle Outfitters, Guess?, ANN and Aeropostale are slated to report their results later today.

A downbeat first quarter outlook led Analog Devices to drop 2.8 percent in the after hours trading session yesterday. Guidewire Software plummeted 10.2 percent after it reported a sharp decline in its first quarter earnings. ACADIA Pharmaceuticals declined 2.4 percent in the after hours trading session after rallying during the regular trading session on news of positive results from the study of its Antipsychotic drug. On the upside, better-than-anticipated fourth quarter results and a hike to its full-year earnings guidance led Green Mountain Coffee Roasters to jump 22.6 percent. Groupon climbed 3.8 percent amid speculation that it is mulling over leadership changes in the company. PVH gained 1.2 percent on the back of robust third quarter earnings and after it boosted its full-year earnings outlook.

Yesterday, the S&P 500 index ended 0.5 percent lower in the regular trading session as concerns about the US “fiscal-cliff” dented optimism over the European agreement on Greek aid and upbeat US durable goods data for October. Seagate Technology and Western Digital slid 5.1 percent and 3.1 percent, respectively, following downbeat broker comments. Hewlett-Packard fell 3.0 percent after Autonomy Corporation’s ex-CEO challenged the former to explain allegations that the company falsified financial statements. Rowan Companies declined 3.6 percent after a broker downgraded its rating on the stock to “Hold” from “Buy”. Zions Bancorporation dropped 3.6 percent after Doyle Arnold, its CEO, warned of weak net loan balances in the fourth quarter. On the flipside, Monster Beverage jumped 13.3 percent after a response from the US Food and Drug Administration eased regulatory concerns surrounding the company. Corning rallied 6.9 percent after it raised its fourth quarter sales outlook. ConAgra Foods surged 4.7 percent after it sealed a deal to buy Ralcorp Holdings for around USD 5.0 billion.

European Stocks: Expected to open in the red
EU Stoxx 50
The DAX and the CAC are likely to open 13 to 17 points lower, each.

German Consumer Price Index, Eurozone M3 Money Supply & Private loans and Spanish Retail Sales are the key economic indicators scheduled for release today.

CTS Eventim AG and Einhell Germany AG are scheduled to report their results later today.

Mexico-based Financiero Banorte SAB has stated that it has agreed to acquire Banco Bilbao Vizcaya Argentaria SA’s Mexican pension fund for about USD 1.6 billion.

Rodolfo De Benedetti, the Chairman of Sogefi SpA, has stated that it has ended talks to buy Eibach Federn, ThyssenKrupp AG’s suspension business.

Franz Haniel & Cie. GmbH has indicated that it would cut its stake in Celesio AG and Metro AG, in an attempt to reduce debt.

Macro Update
Evans calls for near-zero rates until jobless rate falls to 6.5 percent
Charles Evans, the President of the Chicago Fed, has opined that the central bank should maintain its benchmark interest rate near zero until the unemployment rate declines to 6.5 percent or below, as long as inflation is under 2.5 percent.

South Korea’s current account surplus narrows
The unadjusted current account surplus in South Korea has narrowed to USD 5.8 billion in October compared to a revised USD 5.9 billion surplus reported in September.

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous

Frequency

Spain

8:00

Retail Sales (YoY) (Oct)

Low

-11.50%

-10.90%

Monthly

Eurozone

9:00

M3 Money Supply (3M) (Oct)

Medium

2.80%

3.00%

Monthly

Eurozone

9:00

M3 Money Supply (YoY) (Oct)

Medium

2.80%

2.70%

Monthly

Eurozone

9:00

Private loans (YoY) (Oct)

Low

-0.90%

-0.80%

Monthly

US

12:00

MBA Mortgage Applications (23 Nov)

Low

2.80%

2.70%

Weekly

Germany

13:00

Consumer Price Index, Prelim (YoY) (Nov)

High

1.90%

2.00%

Monthly

US

15:00

New Home Sales (Oct)

Medium

386.00 K

389.00 K

Monthly

US

15:00

New Home Sales (MoM) (Oct)

Medium

-0.80%

5.70%

Monthly

US

15:30

DoE Crude Oil Inventories (23 Nov) (Barrels)

Low

350.00 K

 -1466.00 K

Weekly

Switzerland

17:15

SNB Chairman Jordan Speech

High

-

-

-

US

19:00

Fed Releases Beige Book Economic Survey

Medium

-

-

-

Japan

23:50

Retail Trade (YoY) (Oct)

Medium

-0.80%

0.40%

Monthly

China

-

Leading Index (Oct)

Medium

-

100.49

Monthly


For more events see TradingFloor.com's real-time financial calendar

Corporate Calendar

Country

Company Name

Index

Announcement

UK

Daejan Holdings Plc

FTSE All Share

Interim

UK

Thomas Cook Group Plc

FTSE All Share

Final

UK

Torotrak Plc

FTSE All Share

Interim

UK

United Utilities Group Plc

FTSE All Share

Interim

UK

Vp Plc

FTSE All Share

Interim

US

Pall Corp.

S&P 500

Q1 Earnings Release


Ex-Dividend Calendar

Country

Company Name

Index

Announcement

UK

Amec Plc

FTSE 100

Interim Ex-Dividend

UK

Johnson Matthey Plc

FTSE 100

Interim Ex-Dividend

UK

National Grid Plc

FTSE 100

Interim Ex-Dividend

UK

Tate & Lyle Plc

FTSE 100

Interim Ex-Dividend

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