Article / 27 December 2012 at 7:00 GMT

Market Preview: Eyes on US New Home Sales and Jobless Claims data

Saxo Capital Markets UK
United Kingdom

Forex Overnight: USD trading mostly flat
Currencies Intraday
The USD is trading flat against both the EUR and the GBP this morning. Markets are keeping an eye on US consumer confidence and initial jobless claims data due later today which are expected to show deterioration. Additionally, developments in the US “fiscal cliff” negotiations could also sway market sentiment. At 6 am GMT, the EUR and the GBP are trading flat against the USD at USD 1.3227 and USD 1.6134, respectively.

The JPY has declined 0.3 percent and 0.1 percent against the EUR and the USD, respectively, amid speculation that the Bank of Japan (BoJ) might introduce further monetary easing measures to boost its economy.

UK Stocks: Expected to open marginally higher
FTSE 100
The FTSE 100 is likely to open 7 points lower to 19 points higher.

Nationwide House Prices and BBA Loans for House Purchase are the key economic indicators scheduled for release today.

No major corporate releases are scheduled for today.

According to Bloomberg, BP (BP/) has purchased 100,000 metric tonnes of East Siberia-Pacific Ocean crude cargoes from OAO Rosneft at a premium of USD 5.0 per barrel scheduled for loading from 18 February 2013 to 21 February 2013.

OAO Rosneft has agreed to terms with Glencore International (GLEN) and Vitol to supply them with up to 67.0 million tonnes of crude oil over five years under a trade finance deal.

Asia: Trading mostly in the green
Nikkei 225
Asian markets are trading mostly firmer this morning.

In Japan, export sector stocks, Mazda Motor (7261), Nissan Motor (7201), Nippon Sheet Glass (5202) and Panasonic (6752) have gained value tracking a weaker yen amid speculation of further monetary stimulus from the BoJ next year. Toyota Motor (7203) has added value despite agreeing to pay about USD1.1 billion to settle a US litigation by car owners. On the contrary, Sharp Corporation (6753) has declined amid reports that it has not yet reached an agreement for the proposed sale of its Nanjing plant in China to Taiwan's Hon Hai Precision Industry. At 6 am GMT, the Nikkei 225 has advanced 1.1 percent to trade at 10,340.2.

In China, Industrial & Commercial Bank of China Limited (601398) and China Construction Bank  (601939) have lost value on the back of a rise in money market rates amid speculation that banks are accumulating cash to meet year-end capital requirements. In South Korea, SK Telecom (017670) and KT Corporation (030200) have edged down as these stocks traded ex-dividend. In Hong Kong, commodity sector stocks, Zhaojin Mining Industry (1818) and Aluminum Corporation of China Limited (2600) have advanced.

US Stocks: Futures trading higher
S&P 500

At 6 am GMT, S&P 500 futures are trading 0.7 points stronger.

Initial & Continuing Jobless Claims, Consumer Confidence and New Home Sales are the major economic indicators slated for release today.

Bioanalytical Systems (BASI) is scheduled to report its results later today.

BCD Semiconductor Manufacturing (BCDS) rallied 48.2 percent in the after hours trading session on Wednesday after Diodes (DIOD) agreed to acquire the former for about USD 151.0 million. Amongst the other key gainers, Merrimack Pharmaceuticals (MACK), Celldex Therapeutics (CLDX) and Idenix Pharmaceuticals (IDIX) rose 5.4 percent, 3.7 percent and 3.4 percent, respectively. On the flipside, Marvell Technology (MRVL) retreated 3.0 percent in the after hours trading session, extending its regular session losses, after a federal jury in Pittsburgh ordered the company to pay a fine of USD 1.2 billion for infringing on patents held by Carnegie Mellon University. Amongst the other major laggards, VIVUS (VVUS), Ambarella (AMBA) and Dendreon (DNDN) dropped 2.6 percent, 2.5 percent and 1.5 percent, respectively.

On Wednesday, the S&P 500 index eased 0.5 percent in the regular trading session amid looming concerns about the US “fiscal cliff” resolution. Retail sector stocks, Coach (COH), Amazon.com (AMZN), Ralph Lauren (RL), Gap (GPS) and Urban Outfitters (URBN) retreated 5.9 percent, 3.8 percent, 3.3 percent, 3.1 percent and 2.7 percent, respectively, amid reports of weak retail sales during the Christmas holiday shopping season. Technology sector stocks, eBay (EBAY), Apple (AAPL) and Microsoft (MSFT) declined 1.6 percent, 1.4 percent and 0.7 percent, respectively. On the upside, financial sector stocks, Genworth Financial (GNW) and Bank of America (BAC) advanced 3.0 percent and 2.6 percent, respectively. Resource sector stocks, Cliffs Natural Resources (CLF), Newmont Mining (NEM) and Peabody Energy (BTU) edged 2.0 percent, 1.9 percent and 1.5 percent up, respectively, amid hopes of further monetary stimulus in Japan.

European Stocks: Likely to open mixed
EU Stoxx 50
The DAX is likely to open 11 points weaker to 20 points stronger while the CAC is expected to open 24 points lower to 16 points higher.

French Consumer Confidence and Producer Price Indices, Italian Business Confidence Index, Swiss UBS Consumption Indicator and Spanish Mortgages on Houses are the key economic indicators scheduled for release today.

No major corporate releases are scheduled for today.

Telefonica SA (TEF) has stated that it has lowered its overseas call rates in Spain, in an attempt to hold on to its existing customers in an increasingly competitive environment.

Macro Update
US to hit debt ceiling on 31 December 2012, indicates Geithner
The US Treasury Secretary, Timothy F. Geithner, has stated that the US would reach the USD 16.4 trillion debt ceiling at the end of December 2012. He added that the treasury would create USD 200.0 billion in “headroom” which is expected to last for two months in an attempt to delay a possible violation of the debt ceiling.

China’s industrial profits rise
On an annual basis, profits at China’s major industrial companies have increased 3.0 percent in the first 11 months of 2012 compared to a 0.5 percent rise recorded in the first 10 months of 2012.

South Korea cuts economic growth outlook
South Korea has lowered its economic growth estimate for 2012 to 2.1 percent from a 3.3 percent growth rate predicted earlier. The government has also slashed its economic growth outlook for 2013 to 3.0 percent from a 4.0 percent expansion projected earlier.

Manufacturers’ confidence in South Korea rebounds
An index measuring business confidence amongst manufacturers in South Korea has climbed to a reading of 70.0 in January compared to a reading of 67.0 reported in December.

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous

Frequency

China

1:30

Industrial Profits YTD (YoY) (Nov)

Medium

3.00%*

0.50%

Monthly

Japan

4:00

Vehicle Production (YoY) (Nov)

Low

 -8.40%*

-12.40%

Monthly

Japan

5:00

Annualised Housing Starts (Nov)

Medium

0.91 mn*

0.98 mn

Monthly

Japan

5:00

Construction Orders (YoY) (Nov)

Low

-2.10%*

-13.80%

Monthly

UK

7:00

Nationwide House Prices s.a. (MoM) (Dec)

Low

0.00%

0.00%

Monthly

Switzerland

7:00

UBS Consumption Indicator (Nov)

Medium

-

1.31

Monthly

France

7:45

Consumer Confidence (Dec)

Low

84.00

84.00

Monthly

France

7:45

Producer Prices (MoM) (Nov)

Low

-0.20%

0.50%

Monthly

Spain

8:00

Mortgages on Houses (YoY) (Oct)

Medium

 

-32.20%

Monthly

Italy

9:00

Business Confidence (Dec)

Low

88.80

88.50

Monthly

UK

9:30

BBA Loans for House Purchase (Nov)

Medium

34.50 K

33.00 K

Monthly

US

13:30

Initial Jobless Claims (22 Dec)

Medium

366.00 K

361.00 K

Weekly

US

13:30

Continuing Claims (15 Dec)

Low

3200.00 K

3125.00 K

Weekly

US

15:00

Consumer Confidence (Dec)

High

70.00

73.70

Monthly

US

15:00

New Home Sales (MoM) (Nov)

Low

3.30%

-0.30%

Monthly

Japan

23:15

Nomura/JMMA Manufacturing Purchasing Managers' Index (Dec)

Medium

-

46.50

Monthly

Japan

23:30

Jobless Rate (Nov)

Medium

4.20%

4.20%

Monthly

Japan

23:30

Household Spending (YoY) (Nov)

Medium

0.70%

-0.10%

Monthly

Japan

23:30

National Consumer Price Index (YoY) (Nov)

Medium

-0.20%

-0.40%

Monthly

Japan

23:30

Tokyo Consumer Price Index (YoY) (Dec)

Low

-0.60%

-0.50%

Monthly

Japan

23:50

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

Low

0.40%

0.80%

Monthly

Japan

23:50

Large Retailers' Sales (Nov)

Medium

-0.40%

-3.20%

Monthly

Japan

23:50

Industrial Production, Prelim (MoM) (Nov)

Low

-0.50%

1.60%

Monthly

China

-

Leading Index (Nov)

Medium

-

100.42

Monthly


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

Corporate Calendar

Country

Company Name

Index

Announcement

No key corporate releases scheduled for today.

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 ourtrading 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

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