Article / 05 March 2013 at 18:34 GMT

Market Review: Optimism about continued stimulus across the globe

Saxo Capital Markets UK
United Kingdom

Forex: EUR trading mixed
Currencies Intraday
The EUR is trading marginally lower against the USD as investors stayed cautious ahead of the European Central Bank’s monetary policy meeting scheduled later in the week. Additionally, concerns that Italy would be unable to pass structural reforms and austerity measures as the nation’s politicians struggle to form a government following inconclusive elections last week limited a rally in the EUR. Data released earlier in the day indicated that service sector activity in the euro area improved in February and the region’s retail sales jumped more than expected in January. The EUR is trading 0.1 percent lower against the JPY and marginally lower against the USD, respectively, while it is trading marginally higher against the GBP.

The AUD is trading 0.5 percent higher against the USD after the Reserve Bank of Australia decided to keep its key interest rates unchanged at 3 percent.

UK Stocks: Finish higher
FTSE 100  Intraday
UK stocks ended in positive territory following upbeat corporate earnings reports and after the UK services PMI expanded for a second consecutive month in February.

The FTSE 100 and the FTSE 250 jumped 1.4 percent each, to end at 6432 and 13861.3, respectively.

Serco Group (SRP) and John Wood Group (WG/) climbed 8.9 percent and 7.9 percent, respectively, after the companies posted an increase in their full year profit and hiked dividend payouts.

Glencore International (GLEN) advanced 5.7 percent after the company reported a 15 percent rise in its 2012 revenue and proposed to raise dividends. Peer, Xstrata (XTA) added 6.8 percent after it reported higher than expected net income for 2012 and hiked its full year dividend by 14 percent.

Reporting a record profit for the full year led Standard Chartered (STAN) to gain 3.2 percent.

On the flip side, Intu Properties (INTU), SSE (SSE) and Centrica (CNA) featured amongst the key losers falling between 0.3 percent and 1.5 percent.

US Stocks: Trading higher
Dow Jones Intraday
US stocks are trading in the green with the Dow Jones Industrial Average rising to its all-time high following a better than expected ISM non-manufacturing PMI for February.

The Dow Jones and the S&P 500 have risen 1 percent each, to trade at 14274.5 and 1540.7, respectively.

Lower than expected decline in fiscal second quarter profit has led Ascena Retail Group Inc. (ASNA) to surge 14.3 percent.

American Apparel Inc. (APP) has soared 14.7 percent after the company forecast 2012 sales that surpassed market estimates.

Cree Inc. (CREE), Apollo Group Inc. (APOL) and Yahoo Inc. (YHOO) have risen between 1.5 percent and 15.9 percent, respectively, following broker upgrades.

On the downside, J.C. Penney Co. (JCP) has plummeted 9.1 percent after the company’s major shareholder, Vornado Realty Trust (VNO), sold its 40 percent stake in the company.

European Stocks: End firmly in the green
EU Stoxx50 Intraday
European markets closed higher amid speculation that central banks around the world would continue with measures to support the economic recovery.

The DAX climbed 2.3 percent to close at 7870.3 and the CAC jumped 2.1 percent to end at 3787.2.

Upbeat 2012 operating income and a hike in its dividend payout led OC Oerlikon (OERL) to advance 7.9 percent.

GAM Holding AG (GAM) advanced 6.1 percent after the company swung to a full year profit.

Better than expected fourth quarter net income sent Deutsche Post AG (DPW) 5.8 percent higher.

However, Banco Popolare SC (BP) declined 2.7 percent after the bank forecast a net loss of about EUR 300 million in FY2012.

Telenet Group Holding NV (TNET) lost 1.3 percent after the company announced that its CEO, DucoSickinghe, would resign from his position.

Asia: Indices end in the green
Nikkei 225 Intraday
Asian markets closed higher tracking yesterday’s gains on Wall Street amid speculation that the Federal Reserve would continue with its easing measures and after China affirmed its 2013 economic growth forecast.

In Japan, Taiyo Yuden (6976) jumped 9.1 percent following a broker upgrade to buy from hold. Fast Retailing (9983) surged 5.5 percent after the company posted an increase in its same-store sales at its Uniqlo outlets in February. The Nikkei 225 index advanced 0.3 percent to close at 11683.5.

In Hong Kong, China Resources Power Holdings(836), a utility firm owning wind farms, climbed 5.4 percent on improved prospects for alternative energy in China. In China, Chongqing Brewery (600132) jumped 10 percent after it received a stock offer from Carlsberg A/S to purchase an additional 30 percent in the company. In South Korea, SK Hynix (000660) advanced 3.9 percent following an improvement in the outlook for D-RAM prices.

Commodities: Trading higher

The Gold futures contract is trading 0.1 percent higher at USD 1574.5 per ounce amid speculation that central banks across the globe would maintain their stimulus measures to support the global economic recovery. However, bullion prices pared some gains following upbeat US services sector data.

The Brent crude one-month futures contract is trading 0.7 percent higher at USD 110.9 per barrel after China announced an economic growth target of 7.5 percent for 2013, broadly in line with market estimates, strengthening the demand outlook for crude oil. Additionally, a weaker dollar, upbeat Eurozone retail sales data and a growth in US services sector in February also supported crude oil prices.

Macro Update

  • Eurozone and German service sector activity upwardly revised in February
  • UK service activity unexpectedly rises in February
  • Eurozone retail sales jump more than forecast in January
  • US economic optimism declines more than expected in March, indicates IBD/TIPP
  • US ISM non-manufacturing index rises more than expected in February

 

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous

Frequency

UK

-

New Car Registrations (YoY) (Feb)

Low

-

11.50%

Monthly

Japan

-

Bankruptcies (YoY) (Feb)

Medium

-

-5.20%

Monthly

UK

0:01

BRC Shop Price Index (YoY) (Feb)

Low

-

0.60%

Monthly

UK

8:00

Halifax House Prices (MoM) (Feb)

Low

0.20%

-0.20%

Monthly

UK

9:45

BoE's Governor King Speech

High

-

-

-

Eurozone

10:00

Gross Domestic Product s.a., Prelim (QoQ) (Q4)

High

-0.60%

-0.60%

Quarterly

Eurozone

10:00

Household Consumption, Prelim (QoQ) (Q4)

Medium

-

-0.10%

Quarterly

Eurozone

10:00

Gross Fixed Capital, Prelim (QoQ) (Q4)

Medium

-

-0.60%

Quarterly

Eurozone

10:00

Government Expenditure, Prelim (QoQ) (Q4)

Low

-

-0.10%

Quarterly

US

12:00

MBA Mortgage Applications (1 Mar)

Low

-

-3.80%

Weekly

US

13:15

ADP Employment Change (Feb)

Medium

170.00 K

192.00 K

Monthly

US

13:15

Fed's Plosser Speaks on Economic Outlook in Lancaster, PA

Low

-

-

-

US

15:00

Factory Orders (MoM) (Jan)

Medium

-2.20%

1.80%

Monthly

Canada

15:00

Bank of Canada Interest Rate Decision

High

1.00%

1.00%

-

Canada

15:00

Ivey Purchasing Managers Index s.a. (Feb)

Medium

56.00

58.90

Monthly

US

19:00

Federal Reserve Releases Beige Book

Medium

-

-

-

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



 

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