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Thomas Kiely
Willing to change, that was the message new Microsoft CEO Satya Nadella was pushing as the firm released third quarter earnings.
Article / 13 December 2013 at 17:37 GMT

Market Review: Next week’s US FOMC meeting in focus

SaxoBankUK SaxoBankUK
Saxo Capital Markets UK
United Kingdom

Forex: EUR trading mostly lower
Currencies Intraday
Source: Bloomberg

The EUR is trading lower against most of its major counterparts after the European Central Bank (ECB) policymaker, Peter Praet, stated that the region’s economic recovery remains fragile. The GBP has weakened against the USD after the Bank of England chief economist, Spencer Dale, stated that the central bank would not raise interest rates until the nation shows a prolonged period of strong growth. Focus now shift to next week’s US FOMC meeting, especially after recent upbeat US macro data strengthened the case for the US Federal Reserve to taper its monthly asset purchase programme in the near term. The EUR is trading 0.2 percent lower against both, the USD and the JPY, while it is trading 0.2 percent higher against the GBP.

The AUD is trading 0.2 percent higher against the USD.

UK Stocks: Finish mixed
FTSE 100 Intraday
Source: Bloomberg

UK stocks ended mixed.

The FTSE 100 lost 0.1 percent to close at 6440 while the FTSE 250 advanced 0.1 percent to settle at 15233.5.

ARM Holdings (ARM) jumped 3 percent after the company announced that it acquired Angle’s (AGL) computer games graphics business, Geomerics, for GBP 6.2 million.

AstraZeneca (AZN) added 1.7 percent after the US FDA recommended dapagliflozin, its drug for the treatment of type 2 diabetes and after lesinurad, its experimental gout drug, met its goal in a late-stage clinical trial.

Home Retail Group (HOME) and Hays (HAS) gained 2.2 percent and 2.1 percent, respectively, following broker upgrades.

On the downside, RSA Insurance Group (RSA) tumbled 7.2 percent after the company indicated that Simon Lee, its CEO, resigned from his position, and warned that difficulty at its Irish unit might hit the company’s 2013 earnings.

Experian (EXPN) shed 2.3 percent after a broker removed the stock from its Europe Super Ten portfolio.

US Stocks: Trading in a tight range
Dow Jones Intraday
Source: Bloomberg

US stocks are trading in a narrow range as investors remained cautious ahead of the US Federal Reserve’s monetary policy meeting due next week.

The Dow Jones has lost 2.1 points to trade at 15737.4 while the S&P 500 is trading almost unchanged at 1775.5.

Adobe Systems (ADBE) has surged 10.5 percent after the company reported more than expected subscribers addition to its cloud based software business and following upbeat fourth quarter revenue.

Texas Industries (TXI) has jumped 10.8 percent amid reports that the company is seeking a potential buyer.

Electronic Arts (EA), Nielsen Holdings NV (NLSN) and Autodesk (ADSK) have climbed between 3.9 percent and 7.1 percent, featuring amongst the top S&P 500 index gainers.

On the downside, Anadarko Petroleum Corporation (APC) has dropped 7.9 percent after a broker cut its rating on the stock to underweight from neutral.

Restoration Hardware Holdings (RH) has lost 1.4 percent. The company stated that Carlos Alberini, its co-chief executive, would resign from his position at the end of next month.

European Stocks: Close lower
EU Stoxx50 Intraday
Source: Bloomberg

European markets ended in the red as investors remained on the sidelines ahead of the US FOMC meeting scheduled next week.

The DAX declined 0.1 percent to end at 9006.5 and the CAC lost 0.2 percent to close at 4059.7.

Peugeot SA (UG) slumped 12.1 percent after General Motors indicated that it would sell its entire 7 percent stake in the company through a private placement to institutional investors.

Fortum Oyj (FUM1V), Storebrand ASA (STB) and Delta Lloyd NV (DL) declined between 3 percent and 3.5 percent following broker downgrades.

Banca Monte Dei Paschi Di Siena SpA (BMPS) lost 3.3 percent. The company’s board has rejected a request by one of its top investor to delay a plan for a EUR 3 billion capital increase.

On the flip side, Snam SpA (SRG), Sandvik AB (SAND) and Syngenta AG (SYNN) gained between 1.8 percent and 2.7 percent following broker upgrades.

Mediobanca SpA (MB) added 1.4 percent after investor, Vincent Bollore, indicated that he is ready to increase his group’s stake in the lender, if required.

Asia: Indices end mixed
Nikkei 225 Intraday
Source: Bloomberg

Asian markets closed mixed as investors remained apprehensive of the US Federal Reserve’s action at its monetary policy meeting next week.

In Japan, JVC Kenwood Corporation (6632) surged 3.7 percent amid reports that the company might start making automotive resin panels in China. Asahi Group Holdings (2502) gained 2.5 percent after a broker raised its price target on the stock after the company indicated that it plans to launch a premium version of its Super Dry beer in Japanese market. Kobe Bussan (3038) added 1.4 percent after the company forecast an increase in its full year net income. The Nikkei 225 index advanced 0.4 percent to close at 15403.1.

In Hong Kong, Comba Telecom Systems Holdings (2342) soared 5.5 percent after the company bagged orders for 4G mobile base stations antennas in China. In China, China CITIC Bank Corporation (601998) lost 0.3 percent after media reports indicated that the company plans to seek an approval from its shareholders over a bad-loan write-down of around USD 900 million. In South Korea, Hyundai Heavy Industries (009540) and Daewoo Shipbuilding & Marine Engineering (042660) declined 3.4 percent and 2.8 percent, respectively.

Commodities: Trading mixed

The Gold futures contract is trading 0.8 percent higher at USD 1234.7 per ounce recouping some of its yesterday’s steep losses.

The Brent crude one-month futures contract is trading 0.6 percent lower at USD 108.1 per barrel as expectations of a resumption of Libyan oil exports continued to weigh on the investor sentiment.

Macro Update

  • US producer prices fall unexpectedly in November
  • Eurozone employment stagnates in the third quarter of 2013
  • German wholesale prices drop at a slower pace in November

 

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous/
**Previous Est.

Frequency

Eurozone

14-Dec 15:30

ECB's Coeure Speaks in Monaco

Low

-

-

-

China

15-Dec

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

Low

-

5.77%

Monthly

Eurozone

15-Dec 08:30

ECB's Coeure Speaks in Monaco

Low

-

-

-

Japan

15-Dec 23:50

Tankan Large Manufacturing Outlook (Q4)

Medium

-

11.00

Quarterly

Japan

15-Dec 23:50

Tankan Large All Industry Capex (Q4)

Medium

-

5.10%

Quarterly

Japan

15-Dec 23:50

Tankan Large Manufacturing Index (Q4)

Medium

-

12.00

Quarterly

Japan

15-Dec 23:50

Tankan Non - Manufacturing Index (Q4)

Medium

-

14.00

Quarterly

Japan

15-Dec 23:50

Tankan Non - Manufacturing Outlook (Q4)

Medium

-

14.00

Quarterly

UK

16-Dec 00:01

Rightmove House Price Index (YoY) (Dec)

Low

-

4.00%

Monthly

UK

16-Dec 00:01

Rightmove House Price Index (MoM) (Dec)

Low

-

-2.40%

Monthly

China

16-Dec 01:45

HSBC Manufacturing Purchasing Managers' Index Prelim (Dec)

Medium

-

50.80

Monthly

Japan

16-Dec 04:00

Tokyo Condominium Sales (YoY) (Nov)

Low

-

21.40%

Monthly

France

16-Dec 08:00

Markit Services Purchasing Managers' Index Prelim (Dec)

Low

-

48.00

Monthly

France

16-Dec 08:00

Markit Manufacturing Purchasing Managers' Index Prelim (Dec)

Low

-

48.40

Monthly

Germany

16-Dec 08:30

Markit Services Purchasing Managers' Index Prelim (Dec)

Medium

-

55.70

Monthly

Germany

16-Dec 08:30

Markit Manufacturing Purchasing Managers' Index Prelim (Dec)

Medium

-

52.70

Monthly

Eurozone

16-Dec 09:00

Markit Services Purchasing Managers' Index Prelim (Dec)

High

-

51.20

Monthly

Eurozone

16-Dec 09:00

Markit Manufacturing Purchasing Managers' Index Prelim (Dec)

High

-

51.60

Monthly

Eurozone

16-Dec 09:00

Markit Composite Purchasing Managers' Index Prelim (Dec)

High

-

51.70

Monthly

Eurozone

16-Dec 09:00

Trade Balance n.s.a. (Oct)

Low

-

EUR 13.10bn

Monthly

Eurozone

16-Dec 09:00

Trade Balance s.a. (Oct)

Low

-

EUR 14.30bn

Monthly

Italy

16-Dec 09:00

Global Trade Balance (Oct)

Low

-

EUR 0.79bn

Monthly

Italy

16-Dec 09:00

Trade Balance EU (Oct)

Low

-

EUR 0.47bn

Monthly

UK

16-Dec 11:00

CBI Trends Selling Prices (Dec)

Medium

-

5.00

Monthly

UK

16-Dec 11:00

CBI Industrial Trends Survey - Orders (Dec)

Low

-

11.00

Monthly

US

16-Dec 13:30

NY Empire State Manufacturing Index (Dec)

Low

5.00

-2.21

Monthly

US

16-Dec 13:30

Non-Farm Productivity Final (Q3)

Low

2.50%

1.90%**

Quarterly

US

16-Dec 13:30

Unit Labour Costs Final (Q3)

Low

-1.10%

-0.60%**

Quarterly

Canada

16-Dec 13:30

Foreign portfolio investment in Canadian securities (Oct)

Low

-

CAD 8.36bn

Monthly

Canada

16-Dec 13:30

Canadian portfolio investment in foreign securities (Oct)

Low

-

-CAD 1.46bn

Monthly

US

16-Dec 13:58

Markit Manufacturing Purchasing Managers' Index Prelim (Dec)

Medium

-

54.70

Monthly

Eurozone

16-Dec 14:00

ECB President Draghi Speaks to European Parliament in Brussels

Medium

-

-

-

US

16-Dec 14:00

Net Long-Term TIC Flows (Oct)

Medium

-

USD 25.50bn

Monthly

US

16-Dec 14:00

Total Net TIC Flows (Oct)

Low

-

-USD 106.80bn

Monthly

Canada

16-Dec 14:00

Existing Home Sales (MoM) (Nov)

Low

-

-3.20%

Monthly

US

16-Dec 14:15

Industrial Production (MoM) (Nov)

Medium

0.50%

-0.10%

Monthly

US

16-Dec 14:15

Manufacturing (SIC) Production (MoM) (Nov)

Medium

-

0.30%

Monthly

US

16-Dec 14:15

Capacity Utilisation (Nov)

Low

78.40%

78.10%

Monthly

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

 

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