| ADVFN III | Morning Euro Markets Bulletin | ||
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| London Market Report | ||||||||||||||||||||
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| London open: China concerns dampen Footsie; G4S tanks Market Movers
- China's Wen dampens sentiment - Miners drop on Chinese worries, Nomura comments - G4S tumbles on Olympics contract loss estimates London's benchmark index opened slightly lower on Monday morning as comments from China's Premier weighed heavily on stocks in the mining sector. G4S also took a tumble early on after revealing estimated losses for its Olympics contract. After China registered its sixth straight quarterly slowdown in growth last week, Premier Wen Jiabao had some worrying words about his country's economy as he noted that the expected rebound was still not as stable as forecast. "It should be clearly understood that the momentum for a stable rebound in the economy has not yet been established," he warned according to a report from the state-run Xinhua news agency. Meanwhile, analyst Craig Erlam said that the US Federal Reserve (Fed) and its Chairman Ben Bernanke will be in the spotlight again this week ahead of the semi-annual monetary policy report on Tuesday and Wednesday. "With the testimony completely unscripted, people will play close attention for any indication that the Fed will loosen the purse strings in the second half of the year. Given recent testimonies and comments from the Fed Chairman, I expect we'll see more of the same comments again," he said. Miners, G4S and National Grid provide a drag Randgold Resources, Rio Tinto, Polymetal, Fresnillo and ENRC were heavy fallers on the back of Wen's comments and concerns over a slowdown in the world's second-largest economy. Also weighing on stocks was Nomura which lowered its price targets across the mining sector after cutting its commodity price forecasts. Sector peer Glencore International was falling by a lesser rate after announcing that the acquisition of agricultural business Viterra has been approved by Canadian authorities. | ||||||||||||||||||||
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| Europe open: Goldman Sachs cuts estimates for Spanish growth -Investors looking to Eurogroup summit at end of week -Bernanke´s speech tomorrow may give more clues on policy -China´s Wen says stable rebound not yet established -Goldman Sachs says Spain will not meet fiscal deficit targets 2014 -ECB supports Spanish bank senior debt holders sharing losses -WSJ FTSE-100: -0.24% Dax-30: -0.15% Cac-40: -0.36% FTSE-Mibtel: -0.25% Ibex 35: -0.55% Stoxx 600: -0.12% The main European equity benchmarks have begun the morning slightly lower. That despite remarks out of officials in China which seem to augur that more policy stimulus may be forthcoming. The news-flow regarding the Eurozone has been somewhat mixed over the weekend. Ireland is to announce new stimulus measures while Italy has announced plan to sell state assets, with the aim of reducing its public debt burden by 20% by 2018. Nevertheless, Italy has also cut its estimate for economic growth this year to -2.0% from -1.2% before. On the negative side of things, Goldman Sachs has reportedly cuts its growth estimates for the Spanish economy this year and next. More importantly, it does not expect the country to be able to meet its fiscal deficit targets and it sees the possibility that Spain may have to apply for a rescue. Acting as a backdrop, investors are keen to learn whether US Fed Chairman Ben Bernanke will give any hints regarding a further monetary boost during his Senate testimony tomorrow. Investors are also digesting a smattering of rather "strict" talk out of German authorities over the weekend regarding the Eurozone rescue. Nokia slashes pricesNokia has slashed the price on its flagship cell-phones in the US to staunch its loss of market share to rivals such as Apple. H&M, the world's second-largest apparel retailer, has reported sharply weaker than expected like-for-like annual sales growth in local currencies for the month of June. From a sector stand-point, and within the DJ Stoxx 600, the worst performers at the moment are: automobiles (-0.68%), basic resources (-0.60%) and utilities (-0.53%). Economic data due outEurozone consumer price (June) and external trade (May) data are due out at 10am. Crowded short in the euro?The euro/dollar is now off by 0.17% to the 1.2230 dollar level, with some observers talking about a "crowded short". Front month Brent crude futures are now down by 0.776 dollars, to the 102.22 dollar per barrel mark in ICE trading. | ||||||||
| US Market Report | ||
US close: Losing streak ended in style
S&P 500: +22 at 1,357 NASDAQ Composite: +42 at 2,909 Chinese GDP rose 1.8% in the second quarter, according to data published by the Chinese statistics bureau. Consensus estimates had been pointing to a rise of 1.7%. Versus the same period of last year GDP was up by 7.6%, as expected. Investment bank JP Morgan Chase was the top performer among Dow Jones constituents after announcing its second quarter results. The bank´s net profits came in at $4.96bn, down from $5.43bn a year earlier, well ahead of analysts´ expectations. Nevertheless, the firm did revise its first quarter results lower. Even so, investors were heartened by chief executive Jamie Dimon´s claim that the bank will still achieve record profits this year. Elsewhere in the banking sector Wells Fargo was wanted as quarterly earnings per share of 82 cents were a shade higher than the 81 cents the market had been expecting. In after-hours trading credit companies Visa and Mastercard both tended firmer after they settled lawsuits with disgruntled merchants. In contrast, computer printer maker Lexmark tanked after it issued a profit warning. Hewlett-Packard and Xerox declined in sympathy. Sticking with the computing sector, Microsoft saw a bit of buying interest, with investors diving in ahead of the expected unveiling of details of a new version of the software company's cash-cow Office software suite on Monday. Macro-economic dataProducer prices (PPI) rose by 0.1% month-on-month in June, versus the -0.5% forecast by the consensus. At the core level however they registered an increase of 0.2% month-on-month, as expected.Analysts at Barclays had this to say about today´s price data: "Taken alongside a 1.0% increase in food prices at the intermediate level, it suggests that food price inflation has stabilised following recent declines and hints at the first signs that recent sharp gains in some agricultural commodity prices may be beginning to pass through the supply chain. Excluding food and energy, the core PPI rose 0.2%, in line with our forecast and the consensus and the fourth consecutive two-tenth gain. The University of Michigan´s preliminary consumer confidence survey for the month of July has come in at 72 points, versus 73.2 for the month before (Consensus: 73.4). The expectations sub-index dropped to 64 points after the previous month´s reading of 67.8. Treasuries slightly lower10-year US Treasuries fell by 12.5 cents, with yields edging up to 1.49% from 1.48% the day before.Front month West Texas crude futures rose by $1.02 to $87.10 a barrel on the New York Mercantile Exchange. S&P 500 - Risers Abercrombie & Fitch Co. (ANF) $35.48 +5.78% Tenet Hlthcre Corp. (THC) $5.14 +5.76% JP Morgan Chase & Co. (JPM) $36.07 +5.75% Citigroup Inc. (C) $26.65 +5.13% E*TRADE Financial Corp. (ETFC) $7.85 +4.95% R.R. Donnelley & Sons Co. (RRD) $12.60 +4.83% Genworth Financial Inc. (GNW) $5.32 +4.72% Franklin Resources Inc. (BEN) $113.88 +4.50% SunTrust Banks Inc. (STI) $24.75 +4.25% Leucadia National Corp. (LUK) $22.33 +4.20% S&P 500 - Fallers Lexmark International Inc. (LXK) $20.36 -16.25% Supervalu Inc. (SVU) $2.32 -13.75% F5 Networks Inc. (FFIV) $91.40 -2.21% AK Steel Holding Corp. (AKS) $5.60 -2.10% Hewlett-Packard Co. (HPQ) $18.98 -1.91% Dean Foods Co. (DF) $14.52 -1.76% Xerox Corp. (XRX) $7.27 -1.76% Dow Jones I.A - Risers JP Morgan Chase & Co. (JPM) $36.07 +5.75% Bank of America Corp. (BAC) $7.82 +3.85% Caterpillar Inc. (CAT) $82.07 +3.05% Microsoft Corp. (MSFT) $29.39 +2.65% Boeing Co. (BA) $73.51 +2.51% Dow Jones I.A - Fallers Hewlett-Packard Co. (HPQ) $18.98 -1.91% Nasdaq 100 - Risers Check Point Software Technologies Ltd. (CHKP) $46.04 +3.95% Dish Network Corp. (DISH) $27.33 +3.88% Infosys Technologies Ltd. (INFY) $40.21 +3.77% Celgene Corp. (CELG) $65.27 +3.69% Expedia Inc. (EXPE) $45.67 +3.65% Cognizant Technology Solutions Corp. (CTSH) $57.26 +3.45% Foster Wheeler AG (FWLT) $16.11 +3.20% PACCAR Inc. (PCAR) $37.22 +3.05% Nasdaq 100 - Fallers Logitech International S.A. (LOGI) $9.48 -2.47% Research in Motion Ltd. (RIMM) $7.25 -2.29% Apollo Group Inc. (APOL) $31.77 -0.66% Wynn Resorts Ltd. (WYNN) $96.22 -0.55% | ||
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