Stocks Seeing Modest Weakness In Early Trading
Stocks have moved modesty lower in early trading on Thursday, giving back some ground after moving mostly higher over the three previous sessions. The major averages have slipped into negative territory, although selling pressure has remained relatively subdued.
The major averages have climbed off their lows for the young session but currently remain in the red. The Dow is down 15.79 points or 0.1 percent at 13,541.21, the Nasdaq is down 9.36 points or 0.3 percent at 3,094.76 and the S&P 500 is down 3.31 points or 0.2 percent at 1,457.60.
The early weakness on Wall Street is partly due to a disappointing report on weekly jobless claims, which inspired some traders to cash in on the recent strength in the markets.
The report showed that initial jobless claims jumped to 388,000 in the week ended October 13th after falling to a four-year low 342,000 in the previous week.
Economists had been expecting jobless claims to show a more modest increase to 365,000 from the 339,000 originally reported for the previous week.
The rebound from the four-year low set in the previous week was partly due to the normalization of distortions caused by seasonal adjustment challenges in California.
However, a positive reaction to a batch of largely upbeat Chinese economic data has helped to limit the downside for the markets.
China reported a 7.4 percent increase in third quarter GDP, which was slower than the 7.6 percent growth recorded in the second quarter but in line with estimates. The communist country also reported stronger than expected industrial production and retail sales growth in September.
Most of the major sectors have shown only modest moves to the downside, although gold stocks are seeing notable weakness amid a drop by the price of the precious metal.
Semiconductor, trucking, and electronic storage stocks are seeing more moderate weakness, while strength is visible among airline, networking, and railroad stocks.
In overseas trading, stock markets across the Asia-Pacific region saw considerable strength on the heels of the upbeat Chinese economic data. Japan's Nikkei 225 Index surged up by 2 percent, while Hong Kong's Hang Seng Index advanced by 0.5 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is up by 0.3 percent, the U.K.'s FTSE 100 Index is down by 0.1 percent and the French CAC 40 Index is down by 0.3 percent.
In the bond market, treasuries are regaining some ground after ending the previous session firmly in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 1.797 percent. |
| Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Flat At Open Thursday
Toronto stocks were little changed at open Thursday amid selling in metal stocks, with the S&P/TSX Composite Index edging up 2.39 points or 0.02 percent to 12,463.64.
The Diversified Materials Index was down nearly 1 percent, with Teck Resources surrendering over 2 percent. Inmet Mining and First Quantum Minerals were down around 1 percent each.
Among gold stocks, Goldcorp. and Barrick Gold were down over 1 percent each.
In the oil patch, Niko Resources lost close to 3 percent, while Cenovus Energy and Husky Energy were down around 1 percent each.
On the other hand, Lundin Petroleum and Encana Corp. gathered nearly 3 percent each
Telecommunications company Telus Corp. edged up 0.50 percent after announcing that its shareholders have voted strongly in favor of a proposal to exchange the company's non-voting shares for common shares on a one-for-one basis.
The price of crude oil was little changed Thursday morning as traders digest economic growth data out of China, the second largest energy consuming nation and inventories data from the U.S., the world's largest economy. Growth in China's overall national output continued to slow in the third quarter with the GDP recording a 7.4 percent year-on-year growth, data from the National Bureau of Statistics showed. This was in line with expectations but slower than the 7.6 percent growth recorded in the second quarter.
Crude for November delivery slipped $0.50 to $91.62 a barrel.
The price of gold was moving lower Thursday morning as traders were cautious ahead of the outcome of the two-day summit of the EU leaders at Brussels, beginning today. Gold for December lost $10.50 to $1,742.50 an ounce.
In corporate news from Canada, telecommunications company Telus Corp. said that its shareholders have voted strongly in favor of a proposal to exchange the company's non-voting shares for common shares on a one-for-one basis.
Electrical products distributor Wesco International Inc. said that it has agreed to acquire Canada-based rival Eecol Electric Corp. for about C$1.14 billion.
In economic news, Canadian wholesale sales rose by 0.5 percent to $49.7 billion in August, snapping their two consecutive monthly declines, Statistics Canada said. Economists expected whole sales to rise just 0.2 percent in the month. Higher sales in the food, beverage and tobacco sub-sector, and the machinery, equipment and supplies sub-sector, were the main contributors to the increase. Meanwhile, inventories rose for a ninth consecutive month, gaining 0.8 percent to $61.6 billion in August. |
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Stocks Mixed Ahead Of EU Summit
European stocks are moving sideways on Thursday, as investors paused for breath following recent gains awaiting cues from the two-day EU summit beginning today.
Commodities are little changed and the euro is trading below one-month high against the dollar after Spain's funding costs fell at an auction and data showed bad loans at Spanish banks surged to a new record high in August. The latest figures from the Bank of Spain showed that the value of loans at risk of not being repaid rose to EUR 178.6 billion or 10.5 percent of the total lending from EUR 173.2 billion in the previous month.
The Euro Stoxx 50 index of Eurozone bluechip stocks and the Stoxx Europe 50 index, which includes some major U.K. companies, are edging down marginally. Around Europe, France's CAC 40 is moving down 0.1 percent and Switzerland's SMI is losing 0.3 percent, but the German DAX is gaining 0.4 percent and the U.K.'s FTSE 100 is up 0.1 percent.
Akzo Nobel NV is tumbling 5 percent in Amsterdam after the paint maker reported a loss for the third quarter on the back of 2.5 billion euros impairment in its Decorative Paints business.
Cairn Energy Plc. is edging up 0.1 percent in London after issuing an interim management statement. Rolls-Royce Holdings is moving down 0.2 percent despite winning a contract to supply its Spinline digital safety instrumentation and control to the China Guangdong Nuclear Power Corp.
Shares of Nestlé S.A. are losing 2 percent in Zurich after the Swiss food and nutrition products giant reported 11 percent increase in sales for the nine-month period, with an organic growth of 6.1 percent, helped by continuous growth in all of its regions.
British energy giant BP Plc. is gaining 0.9 percent amid reports the company is nearing a deal to sell its 50 percent shareholding in troubled Russian oil producer TNK-BP to Anglo-Russian state oil firm OAO Rosneft.
In economic news, U.K. retail sales volume, including sales of automotive fuel grew 0.6 percent in September from a month ago, when it fell 0.1 percent, the Office for National Statistics said. Economists had forecast a 0.4 percent rise for September. |
| Asia Market | Asian Stocks Rally On China Relief
Asian stocks rose across the board on Thursday after a string of Chinese economic data beat estimates, raising hopes for a rebound in the world's second largest economy. Fresh signs of recovery in the U.S. housing market and e-Bay's third-quarter results that were largely in line with estimates also helped lift investor sentiment ahead of the EU summit beginning in Brussels, Belgium tonight. Ahead of the release of China's economic growth data, Premier Wen Jiabao had said that the Chinese economy is stabilizing and should meet fiscal-year economic targets.
Japanese shares rose for the fourth straight session, boosted by encouraging Chinese data and speculation that the Bank of Japan may consider further monetary easing at its next policy meeting. With a weaker yen against both the euro and dollar lifting exporters, the benchmark Nikkei average jumped 2 percent to 8,983, its highest closing level since September 25. The broader Topix index rallied 1.7 percent.
Automakers such as Toyota Motor and Honda Motor rose 2-4 percent, heavyweight Fast Retailing advanced 2.8 percent and steelmaker JFE Holdings gained 1.9 percent. China-sensitive Fanuc and Komatsu rose by 1.2 percent and 4.7 percent, respectively on hopes for a year-end rebound in China. Canon jumped 3 percent, closing up for a sixth consecutive session, shares of Sony added 2.8 percent, Advantest climbed 6.2 percent and Yaskawa Electric soared 6.7 percent on a brokerage upgrade.
China's Shanghai Composite index rose 1.2 percent and Hong Kong's Hang Seng index gained half a percent after official data showed China's industrial production, retail sales and fixed-asset investment accelerated in September, signaling that the country is not at risk of hard landing.
Growth in China's overall national output continued to slow in the third quarter with the gross domestic product recording a 7.4 percent year-on-year growth during the period, data from the National Bureau of Statistics showed. This was in line with expectations but slower than the 7.6 percent growth recorded in the second quarter.
Industrial production grew 9.2 percent year-on-year in September compared to forecasts for a 9 percent rise, while retail sales grew 14.2 percent annually during the month compared to expectations for a 13.2 percent increase, data released by the statistical office showed. Fixed asset investment during the January to September period was up 20.5 percent, slightly faster than 20.2 percent growth forecast by analysts.
Australian shares hit a 15-month high, led by miners after a batch of Chinese economic reports beat estimates. The benchmark S&P/ASX 200 index rose 0.7 percent to 4,559, its highest close since late July 2011. Global miners BHP Billiton and Rio Tinto soared 3-5 percent, tracking firmer copper prices, while smaller rival Fortescue rose 2.7 percent and gold miner Newcrest added 1.2 percent. Gindalbie Metals jumped 10.5 percent after announcing the first commercial shipment of iron ore from its 50%-owned Karara iron ore project.
Oil & gas firm Woodside Petroleum advanced 2.4 percent after the company lifted its full year production target, mainly due to a better than expected performance at its Pluto gas project. Oil Search and Santos edged down modestly. Media firm Ten Network Holdings fell 1.6 percent, extending the previous session's loss after posting a full-year loss of A$12.9 million and launching another cost-cutting program. Banks ended mostly higher, with ANZ and Commonwealth ending flat, while NAB rose 0.6 percent and Westpac added 0.2 percent.
In economic news, Australia's international merchandise imports fell 3 percent on a seasonally-adjusted basis to A$20.6 billion ($21.3 billion) in September compared to A$21.22 billion in August, figures released by the Australian Bureau of Statistics revealed.
Seoul shares rose modestly on the back of stronger-than-expected U.S. housing data. The benchmark Kospi average edged up 0.2 percent, led by shipbuilders and oil stocks. Economy-sensitive shipbuilders extended gains for a second consecutive session on easing Eurozone concerns ahead of the two-day EU summit, where leaders are expected to discuss ways to strengthen economic and monetary union. Hyundai Heavy Industries and Daewoo Shipbuilding jumped 3-5 percent.
New Zealand shares rose to a fresh four-and-a-half-year high after Chinese GDP data came in line with expectations. Breaking through the psychological 4,000 level, the benchmark NZX-50 ended the session up nearly a percent at 4,002, its highest level since January 2008.
Among the prominent gainers, Fletcher Building, the nation's largest construction company, climbed 3.3 percent, utility Contact Energy rallied 1.9 percent and Telecom, New Zealand's largest telecommunications company, rose 0.8 percent. Fisher & Paykel Appliances added 2.4 percent after Chinese appliance maker Haier raised its takeover offer for the whiteware manufacturer. Goodman Fielder led the decliners on the exchange, falling 2.9 percent.
Elsewhere, India's benchmark Sensex was moving up 0.8 percent, Indonesia's Jakarta Composite index was up 0.4 percent, Malaysia's KLSE Composite rose 0.2 percent, Singapore's Straits Times index was gaining 0.4 percent and the Taiwan Weighted average edged up marginally. |
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| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | Crude Steady Amid China GDP, US Inventories Data
The price of crude oil was little changed Thursday morning as traders digest economic growth data out of China, the second largest energy consuming nation and inventories data from the U.S., the world's largest economy.
Growth in China's overall national output continued to slow in the third quarter with the GDP recording a 7.4 percent year-on-year growth, data from the National Bureau of Statistics showed. This was in line with expectations but slower than the 7.6 percent growth recorded in the second quarter.
Light Sweet Crude Oil (WTI) futures for November delivery, slipped $0.17 to $91.95 a barrel. Yesterday, ended almost flat on a weak dollar and some upbeat housing data from the U.S. that brightened the demand growth scenario. Investors were also upbeat on a resolution to the euro zone debt crisis with the upcoming European heads of state summit this week. Gains were capped as an Energy Information Administration weekly oil report that showed U.S. crude stockpile to have increased last week.
Wednesday during trading hours, the EIA revealed that U.S. crude oil inventories moved up by 2.90 million barrels and gasoline stocks added 1.70 million barrels in the weekended October 12. Analysts expect crude oil inventories to gain 1.5 million barrels and gasoline stocks to shed 0.40 million barrels last week.
The price of gold was ticking lower Thursday morning as traders were cautious ahead of the outcome of the two-day summit of the EU leaders at Brussels, beginning today.
Gold for December delivery, the most actively traded contract, eased $6.30 to $1,746.70 an ounce. Yesterday, gold ended higher with the dollar continuing to weaken against some major currencies and hopes of resolution to the euro zone debt crisis coupled with reports that Spain is inching closer to an official request for bailout. Nonetheless, some upbeat housing data from the U.S. capped gains made by the precious metal.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,333.89 tons.
This morning, the U.S. dollar slipped back toward a one-month low versus the euro and a two-week low against sterling. The buck was advancing to a 2-month high versus the yen and trading higher against the Swiss franc.
In economic news from the euro zone, U.K. retail sales volume that include sales of automotive fuel grew 0.6 percent in September from a month ago, when it fell 0.1 percent, the Office for National Statistics said . Economists had forecast a 0.4 percent rise for September. Sales excluding automotive fuel also expanded 0.6 percent month-on-month, larger than the 0.3 percent rise forecast by economists.
Traders will look to the weekly jobless claims data from the U.S. Labor Department due out at 8.30 a.m ET. Economists expect the new claims to move up to 365,000 from the last week's 339,000. |
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