Australian and Asian Report 19th July 2011

Asian Market Snapshot

Australian and Asian Report 11th July 2011

Asian markets are trading lower this morning, as dismal US job data and a rise in Chinese inflation dampened investor sentiments. In Japan, exporters, Toyota Motor, Tokyo Electron and Honda Motor, traded lower, as the yen appreciated against the dollar. Financial stocks, Mizuho Trust & Banking, Tokio Marine Holdings and Mitsubushi UFJ Financial Group, paced declines, as risk appetite faded among investors. In Hong Kong, oil producers, Cnooc and PetroChina lost values, tracking lower crude oil prices. Stocks also fell, as higher-than-expected inflation data from China raised concerns that the government would take additional measures to curb inflation. In South Korea, exporters, Samsung Electronics and Hyundai Motor traded in negative territory, amid downbeat prospects for their US markets. Nikkei 225 index is trading0.7% lower, at 10,070.8. Hang Seng index is down 0.9%, at 22,525.5, while the Kospi index is trading 1.0% lower, at 2,159.5.

Australian and Asian Report 15th June 2011

US markets rallied yesterday, as positive reports on US retail sales and Chinese industrial production buoyed sentiment among investors. Retailers, J.C. Penney and Best Buy, surged 17.0% and 4.5%, as the former appointed Ron Johnson, Apple’s retail head, as its Chief Executive Officer, while the latter’s net income managed to surpass market expectations. Among technology stocks, shares of Apple rose 1.8%, as the company resolved a patent litigation dispute with Nokia, while Hutchinson Technology, up 13.5%, led the makers of disk drives and related components higher, after the company lifted its outlook for shipments of suspension assemblies for its current, fiscal third quarter. Energy stocks, Exxon Mobil and Chevron, paced gains, as oil prices edged up. DJIA gained 1.0% or 123.1 points to 12,076.1. NASDAQ climbed 1.5% or 39.0 points to 2,678.7. S&P 500 index closed 1.3% higher, at 1,287.9.

Australian and Asian Report 13th June 2011

US markets dipped sharply on Friday, with the DJIA ending below the important level of 12,000 for the first time in three months, amid further signs of a global economic slowdown. Among insurance stocks, Travelers retreated 3.1%, as it delayed its share buyback program, following $1 billion loss in natural disasters. Peers, Principal Financial, MetLife and Allstate, recorded losses between 1.7% and 1.8%. Regional bank stocks, Northern Trust Corp and M&T Bank Corp, lost 1.2% each, after Fed mulled to introduce annual stress tests for the firms having $50 billion or more assets. Intel declined 1.8%, as Macquarie slashed its price target on the stock. Drugmaker, Pfizer, shed 3.1%, despite gaining regulatory approval to acquire Danish medical services company Ferrosan’s consumer healthcare business.
DJIA edged down 1.4% or 172.5 points to 11,951.9. NASDAQ shed 1.5% or 41.1 points to 2,643.7. S&P 500 lost 1.4% or 18.0 points to 1,271.0.

Australian and Asian Report 2nd June 2011

European Market Snapshot
Other European markets ended lower yesterday, as risk appetite waned among investors, after economic data indicated a slowdown in European and Chinese manufacturing. Moreover, a weak manufacturing and payrolls data in the US, further weighed on market sentiments. Banks, Societe Generale and Commerzbank, declined 1.7% and 1.1%, respectively, on weak macro economic reports, while Swedbank dropped 1.6%, after Citigroup downgraded the stock to ‘Hold’ from ‘Buy’. Steelmakers, Salzgitter and ThyssenKrupp, fell 2.3% and 1.3%, respectively, tracking the decline in base metal prices. Computer and software retailer, Bechtle retreated 7.7%, after BWK stated that it would sell shares of the company to institutional investors. Mobile phone maker, Nokia, lost 0.8%, after Goldman Sachs downgraded the stock to ‘Neutral’ from ‘Buy’, citing rapid market-share loss and a weakening balance sheet. FTSEurofirst 300 index declined 1.0% to close at 1,131.0. German DAX Xetra 30 fell 1.1% or 76.3 points to 7,217.4. French CAC-40 lost 1.1% or 42.1 points to 3,964.8.

Australian and Asian Report 24th May 2011

Asian markets are trading higher this morning, after Federal Reserve Bank of St. Louis, President James Bullard, stated that the Federal Reserve would persist with its commitment of near-zero interest rates for an “extended period”. In Japan, the Nikkei 225 index fluctuated between gains and losses, as losses in exporters were offset by gains in shipping stocks. Exporters, Toyota Motor and Honda Motor, traded lower, after data pointed to weakening economic growth in the US and Europe. Shipping stocks, Nippon Yusen, Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha, gained values, as the Baltic Dry Index rose for the third consecutive day yesterday. In Hong Kong, investors snapped up shares of utilities and coal miners following their recent losses. In South Korea, lingering Eurozone debt concerns kept gains in check for the Kospi index. Nikkei 225 index is trading 0.1% higher, at 9,469.6. Hang Seng index is up 0.1%, at 22,726.4, while the Kospi index is trading 0.2% higher, at 2,060.2.

International Report 24th May 2011

US markets finished lower yesterday, as downbeat global economic data coupled with the ongoing Eurozone debt crisis weighed on investors’ sentiment. Industrial stocks, DuPont and Caterpillar, dropped 2.2% and 2.3%, respectively, as data showed that manufacturing growth in China fell to a 10-month low in May. Financial stocks, American Express, JP Morgan and Bank of America, retreated between 0.1% and 1.3%, as Standard & Poor’ issued warning about Italy’s sovereign-credit rating. Among energy sector stocks, Schlumberger, Denbury Resources, and Devon Energy, declined between 1.7% and 3.2%, in line with a slide in oil price. Sony dropped 1.7%, as it predicted a full year net loss compared to its earlier forecast of profit, while Freeport-McMoRan Copper & Gold edged down 2.0%, tracking the fall in copper prices. DJIA shed 1.0% to 12,381.3. NASDAQ lost 1.6% to 2,758.9. S&P 500 declined 1.2% to 1,317.4.

Other European markets closed lower yesterday, led by losses in banks and insurers, as a negative outlook for Italy by S&P renewed concerns about Eurozone’s debt crisis. Commerzbank dropped 5.3%, after the bank announced a €5.3 billion share sale at a steep discount to the market price, in a bid to help repay state aid. Credit Agricole declined 3.0%, after S&P downgraded the counterparty credit rating for the bank to A+/A-1 from AA-/A-1+, citing the bank’s ‘significant sensitivity’ to Greece’s creditworthiness and economic prospects. Insurers, Aegon and Swiss Life Holding fell 3.3% each, after UniCredit downgraded the insurance sector in Europe to ‘Neutral’ from ‘Overweight’. Among airlines, Ryanair dropped 5.3%, after the company revealed that it would cut capacity, while Air France fell 4.5%, as a volcanic eruption in Iceland threatened to disrupt trans-Atlantic flights. FTSEurofirst 300 index declined 1.7% to 1,116.5. German DAX Xetra 30 dropped 2.0% to 7,121.5. French CAC-40 fell 2.1% to 3,907.0.

Australian and Asian Report 19th May 2011

US markets closed higher yesterday, as the minutes of the recent Federal Reserve meeting gave no signal of imminent tightening of monetary policy. Energy stocks, Exxon Mobil and Chevron, advanced 1.7% and 2.4%, respectively, in line with a rise in oil prices, and after a bill proposing a cut in annual tax subsidies for these two companies was rejected in the Senate. Dell, up 5.4%, led the computer hardware sector higher, as the company revealed better-than-expected first quarter profits and raised its annual outlook. The stock also rose, as at least 12 brokers raised their price targets on the firm. Retailer, Abercrombie & Fitch jumped 3.4%, as its first quarter earnings beat market estimates. Among commodity stocks, Freeport-McMoRan Copper & Gold edged up 3.8%, tracking higher gold and copper prices, while Potash Corp. of Saskatchewan rose 2.4%, as corn prices climbed. DJIA edged up 0.6% or 80.6 points to 12,560.2. NASDAQ advanced 1.1% or 31.8 points to 2,815.0. S&P 500 gained 0.9% or 11.7 points, to 1,340.7.

US markets closed lower on Friday, as dismal corporate earnings, coupled with renewed European debt crisis, weighed on investors’ sentiment. Financial stocks, JP Morgan, Bank of America and Janus Capital, retreated between 2.1% and 4.5%, respectively, as changes to the Consumer Financial Protection Bureau were approved by Republicans of US House Panel. Yahoo, down 3.6%, led the technology sector lower, following an escalation in dispute with Alibaba Group regarding the sale of one of the latter’s big assets without shareholder approval. Among other technology stocks, CA plummeted 8.6%, after it posted disappointing fourth quarter results, and Nvidia tumbled 10.9%, as Needham & Co. downgraded the stock to “Hold” from “Buy”, citing concerns over its core graphics chip processor business. DJIA edged down 0.8% or 110.2 points to settle at 12,595.8. NASDAQ slid 1.2% or 34.6 to close at 2,828.5.  S&P 500 lost 0.8% or 10.9 points to 1,337.8.  UK markets closed mixed on Friday, as gains due to positive company updates were offset by losses in financials and utility stocks. A record contract backlog of $12.3 billion saw shares of Petrofac move higher, while BAE Systems rose 1.4%, after bagging a US army contract worth $850 million to manage an ammunition plant. Business outsourcing firms, Capita and Serco, paced gains, as their upbeat trading updates prompted Credit Suisse to upgrade its forecasts higher for the companies. However, the FTSE 100 index ended in the red, as banks, Barclays and Standard Chartered lost values, after Eurozone debt fears resurfaced. Scottish & Southern Energy, down 2.4%, led the utility sector lower, after Citigroup squashed speculation of a bid for the company. FTSE 100 lost 0.3% or 19.1 points to 5,925.9. FTSE 250 gained 0.3% or 32.1 points to 11,999.2.