TV

Lea Jakobiak
What do Google Glass, Titan Aerospace and Texas have in common? Tech expert, Stuart Miles, has the answer.
Article / 19 December 2012 at 7:08 GMT

Market Preview: Focus on German Ifo Indices and BoE minutes

SaxoBankUK SaxoBankUK
Saxo Capital Markets UK
United Kingdom

Forex Overnight: EUR trading stronger
Currencies Intraday
The EUR has strengthened against the majors this morning after Standard & Poor’s Ratings Services (S&P) upgraded its credit rating on Greece by six notches to “B-” and amid optimism over the progress in the US “fiscal cliff” talks. Additionally, the German IFO business sentiment data due later today is expected to show an improvement in December. Meanwhile, investors are also closely eyeing today the release of the Bank of England’s (BoE) minutes of its latest monetary policy meeting . At 6 am GMT, the EUR has risen 0.2 percent and 0.1 percent versus the USD and the GBP to trade at USD 1.3248 and GBP 0.8146, respectively.

The JPY has dropped 0.3 percent and 0.1 percent against the EUR and the USD, respectively, amid speculation that the Bank of Japan might resort to aggressive monetary easing measures at its two-day monetary policy meeting starting today.

UK Stocks: Expected to open
firmer
FTSE 100
The FTSE 100 is likely to open 18 points in the green.

CBI Reported Sales is the key economic indicator scheduled for release today. Additionally, investors are keeping an eye on the release of the BoE’s minutes of the latest monetary policy meeting.

No major corporate releases are scheduled for today.

Royal Dutch Shell (RDSA) and the government of British Columbia have stated that the former has abandoned its plans for a coal-bed methane gas project near the Pacific Coast of Canada due to local opposition and weak natural gas prices.

Leo Varadkar, the Transport Minister of Ireland, has stated that the government has decided to oppose Ryanair Holding’s (RYA) bid to takeover Aer Lingus (AERL), citing risks to competition.

David Garofalo, the CEO of HudBay Minerals, has stated that Vedanta Resources (VED) has sold its stake in the company to a diverse group of institutional shareholders.

Asia: Trading higher
Nikkei 225
Asian markets are trading firmer this morning mirroring overnight gains on Wall Street.

In Japan, financial sector stocks, Nomura Holdings (8604), Mitsubishi UFJ Financial Group (8306), Sumitomo Mitsui Financial Group (8316) and Dai-Ichi Life Insurance Company (8750) have added value amid expectations of further monetary easing by the Bank of Japan at its two-day monetary policy meeting starting today. Toyota Motor (7203) has advanced amid reports that it plans to boost its vehicle production in 2013. Mitachi Company (3321) has surged after it hiked its first half year operating profit outlook. Export sector stocks, Canon (7751), Nissan Motor (7201) and Honda Motor (7267) are trading higher. At 6 am GMT, the Nikkei 225 has climbed 1.8 percent to trade at 10,128.5.

In China, China Shenhua Energy (601088) has advanced after a broker upgraded its rating on the stock to “Long-term Buy” from “Neutral”. On the flipside, property sector stocks were under pressure, with China Vanke (000002) and Poly Real Estate (600048) registering losses. In Hong Kong, Esprit Holdings (330) has lost value after it warned that it might report a loss for the first half year.  On the upside, HSBC Holdings (5) and China Construction Bank (939) have edged up. Markets in South Korea are closed on account of the Presidential elections.

US Stocks: Futures trading in the green
S&P 500
At 6 am GMT, S&P 500 futures are trading 0.5 points higher.

Key economic indicators scheduled for release today are Housing Starts, Building Permits and MBA Mortgage Applications.

Accenture (ACN), FedEx (FDX), General Mills (GIS), Bed Bath & Beyond (BBBY), Paychex (PAYX), Jabil Circuit (JBL) and Steelcase (SCS) are scheduled to report their results later today.

Oracle (ORCL) advanced 1.3 percent in the after hours trading session on Tuesday after it reported upbeat second quarter results. Knight Capital Group (KCG) surged 4.8 percent amid reports that its board has agreed to sell the company to Getco Holding Company LLC. Delphi Automotive (DLPH) added 4.5 percent after Standard and Poor's stated that the company would replace Titanium Metals (TIE) in the benchmark S&P 500 index after the close of trading on 21 December 2012. Career Education (CECO) climbed 3.7 percent after it disclosed that an accrediting commission has lifted a June 2012 show cause order for all 10 of the company’s ACCSC-accredited campuses. Better-than-expected third quarter results and a hike to its full year earnings outlook led Apogee Enterprises (APOG) to edge 1.2 percent higher. On the contrary, a cut to its second quarter revenue and earnings guidance led Symmetricom (SYMM) to plunge 10.0 percent. Energen (EGN) retreated 5.6 percent after it slashed its 2012 and 2013 production forecast.

Yesterday, the S&P 500 index advanced 1.2 percent in the regular trading session amid optimism over the progress in the US budget talks to avert the “fiscal cliff”. Tenet Healthcare (THC) surged 4.1 percent after a broker initiated coverage on the stock with an “Over-weight” rating. Apple (AAPL) advanced 2.9 percent after Samsung Electronics stated that it would withdraw patent lawsuits against the company’s products in Europe. Homebuilder sector stocks, PulteGroup (PHM), Lennar (LEN) and D.R. Horton (DHI) climbed 3.2 percent, 2.4 percent and 2.0 percent, respectively, after data indicated that confidence among US homebuilders in December climbed to the highest level since April 2006. Bank of America (BAC) and Morgan Stanley (MS) featured amongst the other major gainers, climbing 3.3 percent and 2.2 percent, respectively. On the other hand, General Electric (GE) declined 1.1 percent amid news that it is nearing an agreement to acquire Italy-based Avio SpA for about EUR 3.0 billion.

European Stocks: Likely to open in positive territory
EU Stoxx 50
The DAX and the CAC are expected to open 20 points and 16 points stronger, respectively.

German IFO - Business Climate, Current Assessment and Expectations Indices, Eurozone Current Account Balance & Construction Output, Italian & Spanish Industrial Orders and Italian Industrial Sales are the major economic indicators slated for release today.

Schuler AG (SCUN), Cie des Alpes (CDA), Manutan International (MAN) and Heiler Software AG (HLR) are slated to report their results later today.

S&P has cut its credit rating on AXA SA (CS) to “A-” from “A”, citing weak investment market conditions and economic prospects. It also lowered its long-term credit rating on the company’s core insurance operating entities to “A+” from “AA-”.

Federico Ghizzoni, the CEO of Unicredit SpA (UCG), has stated that he is comfortable with the sale of the Bank of Italy’s stake in Assicurazioni Generali SpA (G) to Fondo Strategico Italiano, a state-backed fund. The company is a shareholder of Generali's leading shareholder Mediobanca SpA (MB).

Macro Update
S&P upgrades Greece’s credit rating
S&P has raised its credit rating on Greece to “B-” from “Selective Default” with a “Stable” outlook, citing the recent completion of its bond buyback programme and strong determination of Eurozone members to support Greece.

Bond buying insufficient to spur jobs growth, says Fisher
Richard Fisher, the Dallas Federal Reserve President, has stated that the US central bank’s bond buying programmes alone cannot help to bring down the unemployment rate in the US. He indicated that the US lawmakers should address the fiscal uncertainty which is keeping employers on the sidelines.

Japan’s trade deficit widens less-than-forecast
The trade deficit in Japan has widened to JPY 953.4 billion in November, less than market expectations and compared to a downwardly revised JPY 551.1 billion shortfall posted in October.

Australia’s leading index rises
The Westpac/Melbourne Institute’s leading index in Australia has climbed 0.1 percent M-o-M in October compared to a revised 0.6 percent increase reported in the earlier month.

New Zealand’s current account deficit narrows
The seasonally adjusted current account deficit in New Zealand has narrowed to NZD 2.5 billion in the third quarter of 2012 from a downwardly revised NZD 2.8 billion deficit recorded in the second quarter of 2012.

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous /
**Previous Est.

Frequency

Japan

0:00

Bank of Japan Holds Monetary Policy Meeting

Low

-

-

-

Japan

4:30

All Industry Activity Index (MoM) (Oct)

Medium

0.20%*

-0.40%

Monthly

Japan

5:00

Coincident Index, Final (Oct)

Medium

90.70*

91.60**

Monthly

Japan

5:00

Leading Index, Final (Oct)

Medium

92.80*

91.80**

Monthly

Spain

8:30

Industrial Orders (YoY) (Oct)

Medium

 -3.50%

 -5.70%

Monthly

Germany

9:00

IFO - Business Climate (Dec)

Medium

102.00

101.40

Monthly

Germany

9:00

IFO - Current Assessment (Dec)

Medium

108.10

108.10

Monthly

Germany

9:00

IFO - Expectations (Dec)

Medium

96.40

95.20

Monthly

Eurozone

9:00

Current Account s.a. (Oct)

Low

EUR 6.00 bn

EUR 0.80 bn

Monthly

Italy

9:00

Industrial Sales s.a. (MoM) (Oct)

Low

-

-4.20%

Monthly

Italy

9:00

Industrial Orders s.a (MoM) (Oct)

Low

1.00%

-4.00%

Monthly

UK

9:30

Bank of England Minutes

High

-

-

-

Eurozone

10:00

Construction Output s.a. (MoM) (Oct)

Low

-

-1.40%

Monthly

UK

11:00

CBI Reported Sales (MoM) (Dec)

Low

25.00%

33.00%

Monthly

US

12:00

MBA Mortgage Applications (14 Dec)

Low

-

6.20%

Weekly

US

13:30

Building Permits (Nov)

Medium

875.00 K

868.00 K

Monthly

US

13:30

Housing Starts (Nov)

Medium

871.00 K

894.00 K

Monthly

US

13:30

Housing Starts (MoM) (Nov)

Medium

-2.40%

3.60%

Monthly

US

13:30

Building Permits (MoM) (Nov)

Low

0.80%

-2.50%

Monthly

Canada

13:30

Wholesale Sales (MoM) (Oct)

Low

0.40%

-1.40%

Monthly

Canada

14:00

Teranet/National Bank HPI (YoY) (Nov)

Low

-

3.40%

Monthly

US

15:30

DOE Crude Oil Inventories (Barrels) (14 Dec)

Low

 -1000.00 K

843.00 K

Weekly


See today's events updated in real-time in our Financial Calendar on TradingFloor.com

Corporate Calendar

Country

Company Name

Index

Announcement

US

Accenture Plc

S&P 500

Q1 Earnings Release

US

Bed Bath & Beyond Inc.

S&P 500

Q3 Earnings Release

US

FedEx Corp.

S&P 500

Q2 Earnings Release

US

General Mills Inc.

S&P 500

Q2 Earnings Release

US

Jabil Circuit Inc.

S&P 500

Q1 Earnings Release

US

Paychex Inc.

S&P 500

Q2 Earnings Release


Ex-Dividend Calendar

Country

Company Name

Index

Announcement

UK

Burberry Group Plc

FTSE 100

Interim Ex-Dividend

UK

United Utilities Group Plc

FTSE 100

Interim Ex-Dividend

Disclaimer

The Saxo Bank Group provides an execution-only service and all information provided on Tradingfloor.com is solely for general information. 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. Saxo Bank Group will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of the Tradingfloor.com or as a result of the use of the Tradingfloor.com. Any information which could be construed as investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such should be considered as a marketing communication. Furthermore it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Please read our disclaimers:
- Notification on Non-Independent Investment Research
- Full disclaimer

Show latest activity
Dismiss
Sorry, there was a problem communicating with the TradingFloor.com servers. We are working hard to solve this. Please try again later.
Oops! There was a problem communicating with the OpenAPI Portfolio service.
Oops! There was a problem communicating with the OpenAPI History service.
Oops! There was a problem communicating with the OpenAPI Reference service.
Oops! There was a problem communicating with the OpenAPI Root service.
Oops! There was a problem communicating with the OpenAPI Trading service.
Sorry, there was a problem communicating with the Financial Calender servers. We are working hard to solve this. Please try again later.
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail