Article / 15 April 2014 at 16:28 GMT

Market Review: Continued tensions in Ukraine lead markets lower

Saxo Capital Markets UK
United Kingdom

Forex: USD trading mostly higher
Currencies Intraday











Source: Bloomberg

The USD is trading higher against most of its major counterparts. Macroeconomic reports released in the world’s largest economy painted a mixed picture about the nation’s economic health. Data showed that consumer price inflation in the US rose more than expected in March inching towards the US Federal Reserve’s 2 percent target rate while the New York Empire State's business conditions index and the NAHB hosing market index came in below expectations. The EUR is trading 0.3 percent and 0.1 percent lower against the JPY and the USD, respectively, while it is trading flat against the GBP.

The AUD is trading 0.9 percent lower against the USD. The minutes of the Reserve Bank Australia’s latest monetary policy meeting indicated that a rise in the Australian dollar was weighing on the central bank’s efforts to achieve a balanced economic growth.

UK Stocks: Close in the red
FTSE 100 Intraday











Source: Bloomberg

UK stocks ended lower led by declines in mining sector stocks.

The FTSE 100 declined 0.6 percent to close at 6541.6 and the FTSE 250 shed 0.7 percent to settle at 15590.5.

Rio Tinto (RIO)
lost 3.1 percent after the company reported first quarter iron-ore output below market expectations. Peers, BHP Billiton (BLT), Anglo American (AAL) and Glencore Xstrata (GLEN) shed between 1.7 percent and 2 percent, amid a fall in industrial metal prices.

Fresnillo (FRES)
, Lonmin (LMI) and Randgold Resources (RRS) declined between 2.4 percent and 3.3 percent, tracking loses in precious metal prices.

SABMiller (SAB)
dropped 2.3 percent following lower than expected fourth quarter net producer revenue.

G4S (GFS)
retreated 3 percent after a broker lowered its rating on the stock to sell from hold.

On the upside, Aggreko (AGK) advanced 1.2 percent after the company reported an encouraging start to the year, with underlying group revenue increasing in the first quarter.

US Stocks: Trading in the red
Dow Jones Intraday











Source: Bloomberg

US stocks are trading in negative territory as disappointing US home builder sentiment and New York region manufacturing activity data for April offset some upbeat corporate earnings reports.

The Dow Jones and the S&P 500 have fallen 0.2 percent each, to trade at 16137.5 and 1826.2, respectively.

Northern Trust Corporation (NTRS)
has dropped 3 percent after the company reported lower than expected first quarter earnings.

Medtronic (MDT)
has lost 1.2 percent after a broker lowered its rating on the stock to neutral from overweight.

Newmont Mining Corporation (NEM)
has declined 3.5 percent, tracking a drop in gold price.

On the contrary, Coca-Cola Company (KO) has gained 3.6 percent after the company reported first quarter adjusted earnings in line with market estimates amid an increase in its global volume sales.

Johnson & Johnson (JNJ)
has advanced 1.5 percent after posting upbeat first quarter results and raising its full year adjusted earnings guidance.

European Stocks: End lower
EU Stoxx 50 Intraday











Source: Bloomberg

European markets closed in the red following disappointing German ZEW economic confidence and as Ukrainian concerns continued to dominate market sentiment.

The DAX declined 1.8 percent to end at 9173.7 and the CAC lost 0.9 percent to close at 4345.4.

Banca Monte dei Paschi di Siena SpA (BMPS)
slumped 10.4 percent after the lender indicated that it is considering raising up to EUR 5 billion in a share sale, more than initially planned.

Swiss Re AG (SREN)
plunged 10 percent as the stock traded excluding dividend.

Solarworld AG (SWVK)
shed 3.1 percent following a broker downgrade.

On the upside, Aker Solutions ASA (AKSO) jumped 4.2 percent after the company announced that it won a USD 2.4 billion contract from Total SA (FP).

L'Oreal SA (OR)
gained 1.1 percent after the company reported an acceleration in revenue growth in Western Europe in the first quarter.

Asia: Indices finish mostly lower
Nikkei 225 Intraday











Source: Bloomberg

Asian markets closed mostly in negative territory.

In Japan, steel producers, Nisshin Steel Company (5413) and Aichi Steel Corporation (5482) advanced 5.6 percent and 2.3 percent, respectively. Asics Corporation (7936) gained 3.6 percent after a broker advised investors to buy the stock. Fuji Heavy Industries (7270) added 0.1 percent. A news report indicated that the company is planning to open a plant as early as next year to build wing boxes for Boeing’s 777X passenger jets. The Nikkei 225 index advanced 0.6 percent to settle at 13996.8.

In China, markets ended lower, led by declines in financial sector stocks after data indicated that money supply in the world's second largest economy increased at the slowest pace in more than a decade in March. China CITIC Bank (601998), China Merchants Bank (600036) and China Minsheng Banking Corporation (600016) lost between 2.4 percent and 2.8 percent. In Hong Kong, Guotai Junan International Holdings (1788) slumped 7.9 percent after the company revealed plan to sell its shares. In South Korea, Samsung Heavy Industries (010140) and Hyundai Heavy Industries (009540) declined 3.3 percent and 2.3 percent, respectively, amid concerns over their earnings outlook.

Commodities: Trading lower

The Gold futures contract is trading 1.9 percent lower at USD 1301.8 per ounce amid profit booking, following yesterday’s intraday rally that took bullion prices to a three-week high.

The Brent crude one-month futures contract is trading 0.5 percent lower at USD 108.6 per barrel amid prospect of a gradual recovery in Libyan oil supplies after Libya’s National Oil Corporation prepared to resume exports from its Hariga terminal. However, ongoing concern between Russia and Ukraine capped losses.

Macro Update

  • US consumer prices rise more than expected in March
  • US NAHB housing market index rises less than expected in April
  • New York Empire State Manufacturing Index declines unexpectedly in April
  • US total net TIC flows increase in February

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/*Actual

Previous/ **Previous Est.

Frequency

China

-

FDI - Foreign Direct Investment (YTD) (YoY) (Mar)

Low

2.00%

10.44%

Monthly

US

19:00

Fed's Plosser Moderates Panel in Stone Mountain, Georgia

Low

-

-

-

US

20:00

Fed's Rosengren Speaks in Bangor, Maine

Low

-

-

-

US

-

Fed's Kocherlakota Speaks in Fargo, ND

Low

-

-

-

Spain

-

Trade Balance (Feb)

Low

-

-EUR 2.82bn

Monthly

China

01:30

Business Climate Index (Q1)

Medium

-

119.50

Quarterly

China

01:30

Entrepreneur Confidence Index (Q1)

Low

-

117.10

Quarterly

China

01:45

MNI Business Sentiment Survey (Apr)

Low

-

53.40

Monthly

China

02:00

Gross Domestic Product (YoY) (Q1)

High

7.30%

7.70%

Quarterly

China

02:00

Gross Domestic Product (QoQ) (Q1)

Medium

1.50%

1.80%

Quarterly

China

02:00

Industrial Production (YoY) (Mar)

Medium

9.00%

8.60%

Monthly

China

02:00

Industrial Production (YTD) (YoY) (Mar)

Medium

8.80%

8.60%

Monthly

China

02:00

Retail Sales (YoY) (Mar)

Medium

12.10%

11.80%

Monthly

China

02:00

Retail Sales (YTD) (YoY) (Mar)

Medium

11.90%

11.80%

Monthly

China

02:00

Fixed Assets Inv Excl. Rural YTD (YoY) (Mar)

Medium

18.00%

17.90%

Monthly

Japan

04:30

Industrial Production Final (YoY) (Feb)

Medium

-

6.90%**

Monthly

Japan

04:30

Capacity Utilisation (MoM) (Feb)

Low

-

5.90%

Monthly

Japan

04:30

Industrial Production Final (MoM) (Feb)

Low

-2.30%

-2.30%**

Monthly

Japan

06:15

Kuroda Speaks at Conference in Tokyo

Medium

-

-

-

Italy

08:00

Trade Balance EU (Feb)

Low

-

EUR 1.26bn

Monthly

Italy

08:00

Global Trade Balance (Feb)

Low

EUR 0.12bn

EUR 0.37bn

Monthly

UK

08:30

Employment Change (3M/3M) (Feb)

Medium

90.00K

105.00K

Monthly

UK

08:30

ILO Unemployment Rate (3M) (Feb)

Medium

7.10%

7.20%

Monthly

UK

08:30

Claimant Count Rate (Mar)

Medium

3.40%

3.50%

Monthly

UK

08:30

Claimant Count Change (Mar)

Medium

-30.00K

-34.60K

Monthly

UK

08:30

Average Earnings including Bonus (3Mo/Yr) (Feb)

Medium

1.80%

1.40%

Monthly

UK

08:30

Average Earnings excluding Bonus (3Mo/Yr) (Feb)

Low

1.70%

1.30%

Monthly

Eurozone

09:00

Consumer Price Index - Core Final (YoY) (Mar)

High

0.80%

0.80%**

Monthly

Eurozone

09:00

Consumer Price Index Final (YoY) (Mar)

High

0.50%

0.50%**

Monthly

Eurozone

09:00

Consumer Price Index (MoM) (Mar)

Medium

1.00%

0.30%

Monthly

Switzerland

09:00

ZEW Survey - Expectations (Apr)

Medium

23.00

19.00

Monthly

Italy

09:00

Current Account (Feb)

Low

-

-EUR 1.25bn

Monthly

US

11:00

MBA Mortgage Applications (11-Apr)

Low

-

-1.60%

Weekly

US

12:00

Fed's Stein to Speak on Quantitative Easing in Georgia

Low

-

-

-

US

12:30

Housing Starts (MoM) (Mar)

Medium

-

-0.20%

Monthly

US

12:30

Housing Starts (Mar)

Medium

975.00K

907.00K

Monthly

US

12:30

Building Permits (MoM) (Mar)

Medium

0.10%

7.70%

Monthly

US

12:30

Building Permits (Mar)

Medium

1000.00K

1018.00K

Monthly

US

13:15

Manufacturing (SIC) Production (MoM) (Mar)

Medium

0.60%

0.80%

Monthly

US

13:15

Industrial Production (MoM) (Mar)

Medium

0.50%

0.60%

Monthly

US

13:15

Capacity Utilisation (Mar)

Low

78.70%

78.80%

Monthly

Canada

14:00

Bank of Canada Interest Rate Decision

High

1.00%

1.00%

-

Canada

14:30

Bank of Canada Monetary Policy Report

High

-

-

Quarterly

US

15:30

Fed's Lockhart Gives Closing Remarks on Financial Markets

Low

-

-

-

US

16:15

Fed's Yellen Speaks to Economic Club of New York

Medium

-

-

-

For more events see TradingFloor.com's real-time financial calendar
15 April
Waheed786 Waheed786
Does not make sense.Equities down and gold down..Ukraine tension should lift gold.(imo)

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