Stocks Mostly Higher Amid Optimism About Further Stimulus
9/11/2012 11:06 AM ET
With traders expressing optimism about further monetary stimulus, stocks are mostly higher in late morning trading on Tuesday. The major averages have rebounded after ending the previous session firmly in negative territory.
The strength on Wall Street comes as traders look ahead to the Federal Reserve's upcoming monetary policy meeting. Many expect the central bank to announce a third round of quantitative easing to stimulate the sluggish economy.
Nonetheless, buying interest remains relatively subdued amid uncertainty about the outcome of the meeting as well as the German Federal Constitutional Court's ruling on a request for a temporary injunction against Europe's permanent bailout fund.
Steel stocks have moved sharply higher on the day, with the NYSE Arca Steel Index advancing by 2 percent. With the gain, the index is on pace to end the day at its best closing level in a month.
Considerable strength has also emerged among computer hardware stocks, as reflected by the 1.8 percent gain being posted by the NYSE Arca Computer Hardware Index. Logitech has helped to lead the sector higher, surging up by 5.7 percent.
Gold, natural gas, and oil stocks are also posting notable gains, moving higher along with their associated commodity prices.
The major averages have moved to the upside in recent trading, with the Dow and the S&P 500 reaching new highs. The Dow is up 88.62 points or 0.7 percent at 13,342.91, the Nasdaq is up 10.45 points or 0.3 percent at 3,114.47 and the S&P 500 is up 6.97 points or 0.5 percent at 1,436.05.
| Canadian Market Report |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Edges Up Amid Cautious Trade - Canadian Commentary
9/11/2012 11:23 AM ET
Canadian stocks were hovering in the green Tuesday morning as traders await cues from the the FOMC meeting and a verdict by the German constitutional court on the ESM due on Wednesday. Meanwhile, today's data out of Canada revealed the nation had its biggest trade deficit on record in the month of July.
The S&P/TSX Composite Index was up 27.82 points or 0.23 percent to 12,243.25, a day after snapping its four session winning streak.
The Diversified Materials Index gained over 1 percent, with Teck Resources adding nearly 3 percent. Inmet Mining was up close to 2 percent..
The price of Crude oil edged up Tuesday morning as traders await cues from the the FOMC meeting and a verdict by the German constitutional court on the ESM due on Wednesday. Meanwhile, the Organization of Petroleum Exporting Countries in its monthly oil market report, said it still expects supply from other oil producers to outpace the rise in global demand next year by a small margin, highlighting the downside risks to demand due to contagion from the euro zone crisis.
Crude for October added $0.36 to $96.90 a barrel.
Celtic Exploration rose over 2 percent, while Tourmaline Oil and Imperial Oil were adding around 1 percent each.
The price of gold was ticking higher Tuesday morning as the U.S. dollar was moving lower versus a basket of currencies ahead of FOMC outcome. Also, traders await a key ruling from a German court on the legality of the euro zone bailout fund. gold for December gained $4.50 to $1,736.30 an ounce.
Among gold plays, Eldorado gold and Allied Nevada gold were up around 2 percent each.
Meanwhile, financial stocks were trading lower, with Fairfax Financial Holdings and TD Bank losing around 1 percent each.
Royal Bank announced changes to its business segments, effective October 31. RBC's business segments for financial reporting purposes will be: Investor & Treasury Services; Personal & Commercial Banking; Capital Markets; Wealth Management; and Insurance. The stock was down 0.60 percent.
In economic news, Statistics Canada said trade deficit with the world expanded from $1.9 billion in June to $2.3 billion in July as exports fell 3.4 percent and imports decreased 2.2 percent in July. Exports of energy products fell 8.5 percent to $8.2 billion in July on lower volumes and prices. Economists expected trade deficit of $1.40 billion.
Meanwhile, the Canada Mortgage and Housing Corp said the seasonally adjusted annualized rate of housing starts was 224,900 units in August, compared with 208,000 units in July. The July figure was revised down slightly from 208,500 units reported previously.
9/11/2012 11:23 AM ET
From the U.S., the Commerce Department said the nation exported $183.3 billion in goods and services in July, compared to imports of $225.3 billion for the month. The difference marks a trade deficit of $42 billion, up from the June trade deficit level of $41.9 billion.
Elsewhere, German wholesale price inflation accelerated for the second straight month, according to a report released by the Federal Statistical Office. The wholesale price index rose 3.1 percent year-over-year in August compared to expectations for a 2 percent increase.
Meanwhile, U.K.'s visible trade deficit declined to 7.1 billion pounds in July from a deficit of 10.1 billion pounds in June. Economists expected a more modest drop to 10 billion euros. |
| European Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Fall Ahead Of German Court Ruling, FOMC Meet
9/11/2012 7:29 AM ET
The European markets are in negative territory in afternoon trading Tuesday amid concerns that the European Central Bank's bond-buying plan might be jeopardized by a court ruling in Germany on the legality of the the European Stability Mechanism. The Asian markets ended mostly lower, ahead of the FOMC meeting.
Germany's Federal Constitutional Court said today that it would not delay its keenly awaited ruling on the European Stability Mechanism, while rejecting a last-minute bid by a German lawmaker to postpone the judgment.
Reports said the top court in Karlsruhe would pronounce its ruling on the bailout fund and the fiscal compact for budget discipline at 0800 GMT on Wednesday, as originally planned, after rejecting a petition for a temporary injunction by Peter Gauweiler, a member of Parliament.
Gauweiler has said in a statement that the fund should not be ratified until the European Central Bank revokes its bond-buying plan.
Europe still has a "long way to go" in resolving its debt crisis, International Monetary Fund Deputy Managing Director Zhu Min reportedly said. "The crisis is not over," he was quoted as saying during a speech at the World Economic Forum in the Chinese port city of Tianjin. "We are still in the middle" and "there is a long way to go," he said.
Germany's wholesale price inflation accelerated for the second consecutive month in August, data released by the Federal Statistical Office showed. The wholesale price index increased 3.1 percent on an annual basis in August, faster than the 2 percent growth seen in July.
The euro Stoxx 50 index of eurozone bluechip stocks is falling 0.34 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.07 percent.
The German DAX is losing 0.04 percent and the French CAC 40 is falling 0.42 percent. The UK's FTSE 100 is dropping 0.38 percent and Switzerland's SMI is declining 0.47 percent.
In Frankfurt, Commerzbank is falling 2 percent and Deutsche Bank is down 0.3 percent.
BMW, Daimler and Volkswagen are in negative territory.
HeidelbergCement is losing 1.1 percent. Merrill Lynch reinitiated the stock with an "Underperform" rating.
Kontron is moderately higher. Berenberg cut its rating on the stock.
In Paris, LVMH is losing 4.2 percent after Burberry issued a profit warning in the U.K. PPR is falling 3.8 percent.
Societe Generale and Credit Agricole are falling 2.1 percent and 1.8 percent, respectively. BNP Paribas is modestly higher.
Renault and Peugeot are dropping around 1.5 percent each.
9/11/2012 7:29 AM ET
Sanofi is gaining 1.8 percent. The drug maker's vaccines division said its vaccine candidate protects against dengue fever caused by three dengue virus types.
In London, Burberry is plunging 18.6 percent after issuing a profit warning.
Anglo American and Antofagasta are retreating 4.2 percent and 3.2 percent, respectively.
Royal Bank of Scotland is advancing 1.6 percent and British American Tobacco is gaining 1.5 percent.
IG Group is rising 4.7 percent. The firm reported first-quarter revenues in line with its expectations.
Philips is down 0.5 percent in Amsterdam. The company announced elimination of 2,200 more jobs and expanded its cost savings target by 300 million euros.
Intesa Sanpaolo is losing 1.2 percent in Milan after a broker downgrade.
Inditex is gaining over 1 percent in Madrid even after Goldman Sachs reduced its rating on the stock.
Across Asia/Pacific, Australia's All Ordinaries slid 0.2 percent, China's Shanghai Composite index fell 0.7 percent and Japan's Nikkei 225 dropped 0.7 percent. However, Hong Kong's Hang Seng advanced 0.15 percent.
In the U.S., futures point to a higher open ahead of U.S. Federal Reserve's meeting. In the previous session, apprehension ahead of the Federal Reserve's upcoming monetary policy meeting contributed to weakness on Wall Street. The major averages ended the day firmly in negative territory.
In the commodity space, Crude for October delivery is losing $0.05 to $96.49 per barrel and December gold is advancing $2.6 to $1734.4 a troy ounce. |
| Asia Market Reports | Asian Markets Mostly Down On Economic Concerns
9/10/2012 11:45 PM ET
Asian markets are mostly trading lower on Tuesday with investors tracking a weak lead from Wall Street where stocks declined overnight amid worries about the global economy. Some weak economic data from the region and caution ahead of the U.S. Federal Reserve's interest rate decision are also contributing to the subdued trend.
The Australian market recovered and regained some lost ground after a weak start. Energy, financial and consumer discretionary stocks are trading weak. Mining, industrial and healthcare stocks are trading mixed.
The benchmark S&P/ASX 200 index, which declined to 4,316.7 in early trades, is currently at 4,329, down 4.8 points from its previous close. The broader All Ordinaries index is down 7.8 points at 4,350.2.
Among bank stocks, ANZ Bank , Commonwealth Bank of Australia, National Australia Bank and Westpac are trading lower by 0.3 to 0.5 percent. Bendigo & Adelaide Bank is losing about 0.8 percent, while Bank of Queensland is trading flat.
Among miners, BHP Billiton (BHP, BBL) is trading flat, Rio Tinto (RIO, RIO.L) is down 0.6 percent and Newcrest Mining is losing nearly a percent, while Fortescue Metals is down more than 2 percent.
In the energy sector, Santos is down 1.2 percent, Caltex Australia is losing 1.4 percent, Woodside Petroleum is down with a loss of 0.6 percent and Origin Energy is trading marginally down, while Oil Search is trading flat.
PanAust is trading lower by over 3 percent. JB Hi-Fi, Atlas Iron, James Hardie Industries, Qantas Airways, ALS, Tabcorp Holdings and Seven West Media are all trading lower by over 2 percent.
Whitehaven Coal, Toll Holdings, Boral and Leighton Holdings are also trading notably lower.
Orica, Cochlear, Boral, CSL and Sydney Airport are up in positive territory, gaining between 1.4 percent and 2.3 percent.
In economic news, confidence among Australian businesses fell back in August after a solid improvement in July as weak outlook for commodity prices crushed confidence level in the mining industry, according to the latest survey published by the National Australia Bank.
The business confidence index fell to -2 in August from 3 in July. Mining was the worst affected industry, although most sectors saw weaker confidence levels on the back of global uncertainty. A notable exception was retail where lower rates seem to have offset these impacts, NAB said.
At the same time, the business conditions index rose to 1 in August from -3 in July. However, the levels of activity remain subdued.
The Japanese market drifted lower with investors pressing sales at several counters across the board amid lingering worries about the economic situation in Europe.
9/10/2012 11:45 PM ET
Automobile, bank, retail, construction, glass & ceramics, chemicals and precision instruments stocks were mostly down in negative territory. Foods and pharmaceuticals stocks displayed a mixed trend.
The benchmark Nikkei 225 Index was down 72.4 points or 0.8 percent at 8,797 when the morning session ended.
Sumco Corp. shares lost more than 7 percent. Asahi Glass, Ebara Corp., Nippon Express, Mitsumi Electric, Shinsei Bank, Sumitomo Metal Industries, Kobe Steel and Mazda Motor declined by 3 to 4 percent.
Toshiba Corp. announced that it will pay $30 million to settle a lawsuit in the United States over alleged price-fixing involving liquid crystal display panels and products containing LCD panels.
Panasonic Corp. shares lost more than 2 percent following a rating downgrade of the company by Moody's Investors Service.
NTN Corp., Mitsubishi Motors, Mitsubishi Materials, Komatsu, Showa Shell KK, Mitsui Mining & Smelting, Taisei Corp., Nippon Steel, Sumitomo Mitsui Trust Holdings and Toyota Motor were also down by over 2 percent.
Nissan Motor, Advantest Corp. , JX Holdings, Nissan Chemical Industries, Japan Steel Works, Mizuho Financial and SMFC too posted notable losses.
Meanwhile, Nisshin Steel, Nippon Light Metal, Japan Tobacco and Kawasaki Kisen Kaisha gained 1 to 2.5 percent.
Pioneer Corp., Tokyo Electric Power, Trend Micro, Shizuoka Bank, Fuji Electric Power and Kansai Electric Power were up with modest gains.
In economic news, the value of M2 money stock and CDs in Japan was up 2.4 percent on year in August at 819.0 trillion yen, according to the data released by the Bank of Japan said. That was higher than forecasts for an increase of 2.3 percent following the 2.2 percent gain in July.
M3 was up an annual 2.1 percent to 1,126.3 trillion yen - also topping expectations for a 1.9 percent increase, which would have been unchanged from the previous month.
L money stock added 0.3 percent on year to 1,462.1 trillion yen in August after showing a flat reading a month prior.
In the currency market, the U.S. dollar traded in the lower 78 yen range in early deals in Tokyo. The yen is currently trading at 78.21 to the dollar.
Among other markets in the Asia-Pacific region, Shanghai, Hong Kong, Malaysia and Indonesia are trading notably lower. South Korea and Taiwan are down marginally, while New Zealand and Singapore are trading marginally higher.
On Wall Street, stocks ended mostly lower on Monday, after showing a lack of direction almost right through the session. Some profit taking after recent gains and apprehension ahead of the Federal Reserve's upcoming monetary policy meeting contributed to the weakness.
9/10/2012 11:45 PM ET
The major averages all ended the day firmly in negative territory. The Dow drifted down 52.3 points or 0.4 percent to 13,254.3, the Nasdaq dropped 32.4 points or 1 percent to 3,104 and the S&P 500 slid 8.8 points or 0.6 percent to 1,429.1.
Major European markets too ended lower on Monday. The French CAC 40 Index lost 0.4 percent, while the U.K.'s FTSE 100 index and the German DAX index both closed just below the unchanged line.
U.S. Crude oil made a late rally to end higher on Monday, notwithstanding demand growth concerns after some disappointing macroeconomic data from China. Light Sweet Crude oil futures for October delivery gained $0.12 or 0.1 percent to close at $96.54 a barrel on the New York Mercantile Exchange. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | China's Growth Remains On Track, Premier Says
9/11/2012 8:31 AM ET
China's Premier Wen Jiabao on Tuesday said the economy is on track to meet its growth target of 7.5 percent this year.
Speaking at the World Economic Forum in Tianjin, Wen said the government stands ready to utilize the CNY 100 billion reserve fund to fine tune the economy if needed. The government gives high priority to stabilize growth, he added.
The Chinese leader expects the economy to stabilize on recent measures like tax reduction, required reserve ratio, and infrastructure spending.
Wen defended massive stimulus initiated by China during financial crisis in 2008. Some people accused that it paid undue price.
He said, "It was exactly due to our resolute decision and scientific response that China was able to avoid factory closures and job losses."
The government last week added stimulus worth more than CNY 1 trillion through the approval of a slew of infrastructure projects. It includes rail projects as well as highway construction.
At APEC Economic Leaders' Meeting in Russia held over the weekend, Chinese President Hu Jintao said that the economy is facing notable downward pressure largely due to slowing export growth.
China's economic growth slowed to a three-year low of 7.6 percent in the second quarter, just above the government's full-year target of 7.5 percent. This primarily reflected weak exports due to reduced demand from European Union, its largest trading partner.
Data released earlier on the day showed that bank lending surged in August mirroring higher government spending amid efforts to stimulate growth.
The central bank reduced interest rates in June and July and has also lowered the reserve requirement ration three times since November last year. |
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