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Lea Jakobiak
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Article / 03 January 2014 at 17:32 GMT

Market Review: US Fed speakers on tap

SaxoBankUK SaxoBankUK
Saxo Capital Markets UK
United Kingdom

Forex: USD trading mixed
Currencies Intraday
Source: Bloomberg

The USD is trading mixed against its major counterparts ahead of a slew of speeches by key US Federal Reserve members, including the outgoing Fed chairman, Ben Bernanke, for further insight on the stance of the central bank over its monthly stimulus programme. With no major macroeconomic release for the day, investors would keenly await a batch of macroeconomic reports from the US and the Eurozone scheduled next week. The GBP is trading higher against the EUR after data indicated that mortgage approvals in the UK rose more than forecast in November. The EUR is trading 0.7 percent, 0.4 percent and 0.3 percent lower against the JPY, the USD and the GBP, respectively.

The AUD is trading 0.8 percent higher against the USD.

UK Stocks: Close higher
FTSE 100 Intraday
Source: Bloomberg

UK stocks ended in the green led by gains in retail sector stocks and after data indicated that construction activity in the UK fell less than anticipated in December.

The FTSE 100 gained 0.2 percent to close at 6730.7 and the FTSE 250 advanced 0.6 percent to settle at 16020.5.

Next (NXT) rallied 10 percent after the company raised its full year pre-tax profit outlook and announced a special dividend payout of 50 pence per share. Sector peers, Dixons Retail (DXNS), Marks & Spencer Group (MKS) and J Sainsbury (SBRY) advanced between 1.8 percent and 5.2 percent.

Johnson Service Group (JSG) rose 3.3 percent after the company appointed Chris Sander as its new CEO with immediate effect.

Miners, Fresnillo (FRES), African Barrick Gold (ABG) and Polymetal International (POLY) climbed between 1.1 percent and 2.2 percent.

Schroders (SDR) jumped 1.2 percent after a broker raised its rating on the stock to overweight from underweight.

On the downside, financial sector stocks, Standard Chartered (STAN), HSBC Holdings (HSBA) and Aberdeen Asset Management (ADN) dropped between 0.3 percent and 0.6 percent.

US Stocks: Trading mostly in the green
Dow Jones Intraday
Source: Bloomberg

US stocks are trading mostly higher, recovering some of the previous session’s losses, and as traders await speeches by key US Federal Reserve members for cues on the strength of economic recovery in the world’s largest economy.

The Dow Jones and the S&P 500 have risen 0.2 percent each, to trade at 16478.4 and 1836.2, respectively.

A rise in its December passenger traffic has led Delta Air Lines (DAL) to jump 4 percent.

Financial sector stocks, Bank of America Corporation (BAC), Bank of New York Mellon Corporation (BK) and Citigroup (C) have advanced between 1.8 percent and 2.3 percent.

Finisar Corporation (FNSR) has gained 3.6 percent after a broker raised its rating of the stock to strong buy from outperform.

Rite Aid Corporation (RAD) has risen 7.6 percent after the company reported a 2.9 percent annual rise in its same store sales in December.

On the flipside, Sprint Corporation (S) and Micron Technology (MU) have shed 4.1 percent and 1.9 percent, respectively, following broker downgrades.

General Motors (GM) has dropped 2.6 percent after the company reported an unexpected decline in its December US vehicle sales.

European Stocks: Close higher
EU Stoxx50 Intraday
Source: Bloomberg

European markets ended in the green following upbeat Spanish unemployment figures and ahead of a speech by the outgoing US Federal Reserve chairman, Ben Bernanke.

The DAX rose 0.4 percent to end at 9435.2 and the CAC advanced 0.5 percent to close at 4247.7.

Telecom Italia SpA (TIT) rallied 6.9 percent amid reports of a possible sale of its Brazilian wireless unit.

Banks, Banco Espirito Santo SA (BES), Banca Popolare di Milano Scarl (PMI) and Banca Monte dei Paschi di Siena SpA (BMPS) jumped between 0.7 percent and 8.2 percent.

Deutsche Bank AG (DBK) added 0.9 percent following a broker upgrade to buy.

On the downside, Remy Cointreau SA (RCO) dropped 2.6 percent after its CEO, Frederic Pflanz, resigned from his post.

Swiss Re AG (SREN) shed 2.3 percent amid reports that reinsurance prices slid by as much as 25 percent during the recent renewal rounds. Sector peers, Muenchener Rueckversicherungs AG (MUV2) and Hannover Rueck SE (HNRB) declined 1.3 percent and 0.7 percent, respectively.

Asia: Indices close lower
Nikkei 225 Intraday
Source: Bloomberg

Asian markets closed in the red mirroring yesterday’s losses on Wall Street and after data indicated that Chinese services activity dropped in December.

In China, China CNR Corporation (601299) retreated 2.9 percent. The company received an approval from the Chinese regulator to issue H shares to be listed on the Hong Kong stock exchange. On the other hand, Inner Mongolia Baotou Steel Rare-Earth Hi-Tech (600111) gained 3 percent after the company indicated that it acquired nine regional mining companies as a part of the Chinese government’s master-plan to consolidate the sector. In Hong Kong, Belle International Holdings (1880) slumped 5.1 percent after a broker lowered its price target on the stock. On the flip side, Melco Crown Entertainment (6883) and Wynn Macau (1128) climbed 2.6 percent and 1 percent, respectively, after data indicated that gambling revenue in Macau increased in December. In South Korea, Hyundai Mipo Dockyard (010620) slipped 4.2 percent after the company forecast a decline in orders for 2014.

Markets in Japan were closed today on account of a holiday.

Commodities: Trading mixed

The Gold futures contract is trading 0.8 percent higher at USD 1235.5 per ounce, adding to its previous session gains, amid signs of physical demand in Asia.

The Brent crude one-month futures contract is trading 0.6 percent lower at USD 107.1 per barrel. The Energy Information Administration’s (EIA) weekly stockpile report indicated that the crude oil inventories in the US dropped more than anticipated during the last week.

MacroUpdate

  • UK construction activity drops less than forecast in December
  • UK mortgage approvals rise more than anticipated in November
  • US ISM New York index drops in December

 

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous/
**Previous Est.

Frequency

US

03-Jan 17:45

Fed's Plosser Speaks at Economics Conference in Philadelphia

Low

-

-

-

US

03-Jan 18:15

Fed's Stein Speaks at Economics Conference in Philadelphia

Low

-

-

-

US

03-Jan 18:30

Fed's Lacker Speaks on the Economy in Baltimore

Low

-

-

-

US

03-Jan 19:30

Fed's Bernanke Speaks at Economics Conference in Philadelphia

Medium

-

-

-

US

03-Jan 22:00

Total Vehicle Sales (Dec)

Low

16.00mn

16.40mn

Monthly

US

03-Jan 22:00

Domestic Vehicle Sales (Dec)

Low

12.50mn

12.75mn

Monthly

China

06-Jan 01:45

HSBC Services Purchasing Managers' Index (Dec)

Medium

-

52.50

Monthly

Japan

06-Jan 05:00

Vehicle Sales (YoY) (Dec)

Low

-

13.30%

Monthly

Spain

06-Jan 08:15

Markit Services Purchasing Managers' Index (Dec)

High

-

51.50

Monthly

Italy

06-Jan 08:45

Markit Services Purchasing Managers' Index (Dec)

Low

-

47.20

Monthly

France

06-Jan 08:50

Markit Services Purchasing Managers' Index Final (Dec)

Low

47.40

47.40**

Monthly

Germany

06-Jan 08:55

Markit Services Purchasing Managers' Index Final (Dec)

Medium

54.00

54.00**

Monthly

Eurozone

06-Jan 09:00

Markit Services Purchasing Managers' Index Final (Dec)

High

51.00

51.00**

Monthly

Eurozone

06-Jan 09:00

Markit Composite Purchasing Managers' Index Final (Dec)

High

52.10

52.10**

Monthly

Eurozone

06-Jan 09:30

Sentix Investor Confidence (Jan)

Medium

-

8.00

Monthly

UK

06-Jan 09:30

Markit Services Purchasing Managers' Index (Dec)

Medium

60.30

60.00

Monthly

UK

06-Jan 09:30

Official Reserves (Changes) (Dec)

Medium

-

-USD 868.00mn

Monthly

Portugal

06-Jan 11:00

Business Confidence (Dec)

Low

-

-1.20

Monthly

Portugal

06-Jan 11:00

Consumer Confidence (Dec)

Low

-

-41.80

Monthly

Germany

06-Jan 13:00

Harmonised Index of Consumer Prices Prelim (YoY) (Dec)

High

1.40%

1.60%

Monthly

Germany

06-Jan 13:00

Harmonised Index of Consumer Prices Prelim (MoM) (Dec)

Medium

0.40%

0.20%

Monthly

Germany

06-Jan 13:00

Consumer Price Index Prelim (YoY) (Dec)

Medium

1.40%

1.30%

Monthly

Germany

06-Jan 13:00

Consumer Price Index Prelim (MoM) (Dec)

Medium

0.30%

0.20%

Monthly

Canada

06-Jan 13:30

Raw Material Price Index (Nov)

Low

-

-2.30%

Monthly

Canada

06-Jan 13:30

Industrial Product Price (MoM) (Nov)

Low

-

-0.30%

Monthly

US

06-Jan 15:00

Factory Orders (MoM) (Nov)

Medium

1.70%

-0.90%

Monthly

US

06-Jan 15:00

ISM Non-Manufacturing Purchasing Managers' Index (Dec)

Medium

54.50

53.90

Monthly

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

 

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