| Stocks Seeing Modest Strength In Early Trading
Stocks have moved modestly higher in early trading on Wednesday, although buying interest has remained somewhat subdued. The major averages have all moved to the upside after ending the previous session nearly flat.
The major averages have recently pulled back off their highs for the young session but currently remain in positive territory. The Dow is up 24.13 points or 0.2 percent at 12,812.64, the Nasdaq is up 7.06 points r 0.2 percent at 2,923.74 and the S&P 500 is up 1.64 points or 0.1 percent at 1,389.45.
The early strength on Wall Street is partly due to the release of a report from the Labor Department showing that jobless claims pulled back in line with estimates after surging higher in the previous week.
The report, which was released a day earlier than usual due to the holiday on Thursday, showed that jobless claims fell to 410,000 from the previous week's revised figure of 451,000.
Economists had expected jobless claims to pull back to 410,000 from the 439,000 originally reported for the previous week.
However, the latest news out of Europe has helped to limit the upside for the markets, as finance ministers failed to strike a deal on Greece, further delaying the approval of the much-awaited 31.5 billion euro loan installment.
The Eurogroup will meet again on November 26th to complete "further technical work on some elements of this package," Eurogroup President Jean-Claude Juncker said in a statement issued after the ministers' meeting in Brussels.
Traders are also keeping an eye on developments in the Middle East, with Secretary of State Hillary Clinton in the region to try to help broker a cease fire between Israel and Palestinian militants in Gaza.
Most of the major sectors are showing only modest moves in early trading, although strength is visible among networking, software, and electronic storage stocks. On the other hand, airline stocks are seeing some early weakness.
Among individual stocks, farm equipment maker Deere (DE) has come under pressure after reporting fiscal fourth quarter earnings that came in below analyst estimates. However, the company also forecast higher earnings and sales for fiscal 2013.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Wednesday. Japan's Nikkei 225 Index advanced by 0.9 percent, while Australia's All Ordinaries Index fell by 0.4 percent.
Meanwhile, the major European markets are seeing modest strength on the day. While the French CAC 40 Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both just above the unchanged line.
In the bond market, treasuries are moving modestly lower, pulling back further off last week's highs. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.7 basis points at 1.683 percent. | Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | TSX Slips At Open Wednesday
Toronto stocks edged down at open Wednesday amid marginal selling in commodities, with the S&P/TSX Composite Index losing 14.83 points or 0.12 percent to 12,031.46.
The Diversified Materials Index was down nearly 1 percent, with First Quantum Minerals and Inmet Mining shedding around 1 percent each.
In the oil patch, Bonterra Energy and Paramount Resources were down around 1 percent each.
Among gold plays, Detour Gold lost over 3 percent.
Commercial real estate company Brookfield Office Properties Inc. slipped 0.25 percent after announcing the sale of it interest in two properties for about 182 million.
Meanwhile, Altus Group Ltd surged 8 percent.
The price of crude oil was recovering from its previous session's steep fall Wednesday morning as trader await cues from the official inventories data from the EIA, due out later during the sessions. Analysts expect crude oil inventories to jump 1 million barrels and gasoline stocks to add 1.25 million barrels last week. Crude for January moved up $0.77 to $87.52 a barrel.
The price of gold was steady around $1,725 Wednesday morning as traders focus on Middle-East tensions and US fiscal cliff talks. Gold for December added $4.90 to $1,728.50 an ounce.
In corporate news from Canada, commercial real estate company Brookfield Office Properties Inc. announced the sale of it interest in two properties for about 182 million.
Industrial and commercial real estate properties dealer Granite Real Estate Inc. announced that it received necessary legal approvals to convert itself into a real estate investment trust or the "REIT Conversion"
Strategic Oil & Gas Ltd. reported a narrower third quarter net loss of $718,000 or breakeven per share compared to a loss of $1.39 million or $0.01 per share a year ago. |
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | European Markets Fall After No Deal On Greece
The European markets are in negative territory on Wednesday, after Eurozone finance ministers on Tuesday failed to strike a deal on Greece. The Asian markets ended mostly higher, while the U.S. index futures indicate a lower open.
The failure of Eurozone finance ministers to strike a deal on Greece has delayed further the approval of the much-awaited 31.5 billion euros loan installment amid fears that the country will run out of cash this month.
The Eurogroup will meet again on November 26 to complete "further technical work on some elements of this package," Eurogroup President Jean-Claude Juncker said in a statement issued after the ministers' meeting in Brussels on Tuesday.
However, Juncker said the Eurogroup has made progress in identifying "a consistent package of credible initiatives aimed at making a further substantial contribution to the sustainability of Greek government debt."
A leading indicator for Germany's economic activity increased 0.1 percent month-on-month to 102.6 in September, marking its first gain since February this year, the Conference Board said in a report.
Bank of England's minutes showed that policymakers earlier in the month decided to retain quantitative easing at 375 billion pounds through a split vote, as David Miles sought an increase of 25 billion pounds citing the slackness in the economy.
Japan's exports and industrial production would likely continue to decrease for the time being, while the overall economic activity is expected to remain relatively weak, the Bank of Japan said in the latest monthly report.
The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.02 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.09 percent.
The German DAX is down 0.1 percent. The French CAC 40, the UK's FTSE 100 and Switzerland's SMI are falling around 0.2 percent each.
In Frankfurt, K+S is losing 1.3 percent. JPMorgan reduced its rating on the stock. Deutsche Bank cut Siemens to "Sell" from "Hold." The stock is falling 1.1 percent.
BASF shares are flat after the company announced an offer to acquire Norway's Pronova. Pronova is climbing around 5 percent in Oslo.
Airline Lufthansa is gaining 1.7 percent. BMW and Daimler are up around 1.7 percent each while Volkswagen is adding 1 percent.
GSW Immobilien is adding 1.6 percent. JPMorgan initiated the real estate developer with an "Overweight" rating.
In Paris, Lafarge is declining 2.7 percent and drugmaker Sanofi is falling 1.2 percent. Lenders Societe Generale, BNP Paribas and Credit Agricole are in negative territory.
In London, Johnson Matthey is declining 6.4 percent. The chemicals firm reported a decline in profit for the first half of the year, as revenues were hurt amid decreased prices on precious metals.
Food and support services company Compass Group reported a lower profit for the year, but lifted its final dividend and announced a new share repurchase program. The stock is down 1.9 percent.
Randgold Resources is dropping 2.4 percent, Eurasian Natural Resources is falling 1.9 percent and Rio Tinto is losing 1.2 percent. |
| Asia Market | | Asian Stocks Mixed Amid Uncertainty Over Greek Aid
Asian stocks ended on a mixed note on Wednesday, as fresh concerns about Europe's economy outweighed better-than-expected housing starts data out of the U.S. Moody's downgraded France's sovereign rating late Monday and Eurozone officials failed to reach an agreement on the next tranche of aid to Greece to help it avoid bankruptcy, rekindling worries about the euro zone. Japan's larger-than-expected trade deficit for October and Fed Chairman Ben Bernanke's warning over the looming fiscal cliff of scheduled spending cuts and tax hikes also rendered the underlying mood somewhat cautious ahead of the U.S. Thanksgiving holiday on Thursday.
Tokyo stocks rose to a two-month high, led by export-oriented stocks as the yen continued to weaken against the dollar, though concerns about Greece helped stem losses. Against the euro, the yen hit a six-month low on speculation of BOJ easing and as data showed Japan's exports fell more than expected in October. The benchmark Nikkei average rose 0.9 percent to 9,223, its highest closing level since September 19, while the broader Topix index added 0.7 percent.
Japan posted a merchandise trade deficit of 549.0 billion yen in October, the Ministry of Finance said, reflecting slowing exports to China and the European Union. Sinking into the red for the 11th time in the last 13 months, the headline figure was wider than forecasts for a shortfall of 360.0 billion yen. Exports were down 6.5 percent from a year earlier to 5.149 trillion yen. Exports to China were the key drag, plummeting 11.6 percent year-over-year to 947.766 billion yen due to escalating tensions over the ownership of disputed islands in the East China Sea.
In stock-specific action, the yen's weakness boosted automakers and auto parts makers, with Toyota Motor, Honda Motor and Denso gaining 2-3 percent. Other major exporters like Canon and Shin-Etsu Chemical rose 1-2 percent, semiconductor equipment maker Tokyo Electron advanced 1.2 percent and Fuji Heavy Industries added 2.6 percent on a brokerage downgrade.
China's Shanghai Composite index rose over a percent, reversing early losses, while Hong Kong's Hang Seng index rallied 1.4 percent on signs of a Chinese recovery. A leading indicator of economic activity in China rose at a faster pace in October, driven by renewed real estate activity and upbeat consumer expectations, a report from the Conference Board showed today.
Australian shares edged lower, led by miners and energy firms as commodities weakened and worries over the euro zone debt situation resurfaced. Both the benchmark S&P/ASX 200 as well as the broader All Ordinaries index edged down about 0.4 percent each. BHP Billiton slipped 0.7 percent, Rio Tinto lost 0.9 percent and smaller rival Fortescue retreated 2.7 percent after spot iron-ore prices hit two week lows on Tuesday, reflecting weakness in the steel market and reports that China is considering cutting tax rates for local iron-ore miners to encourage domestic production.
Woodside Petroleum dropped a percent and Santos fell 2.4 percent after U.S. crude futures tumbled 2.8 percent yesterday on reports of a possible ceasefire agreement between Israel and Hamas. Among the major banks, ANZ, Commonwealth and NAB slipped marginally, while Westpac eased 0.4 percent.
Seoul shares reversed early gains to end lower after Greek aid talks ended inconclusively. The benchmark Kospi average slipped 0.3 percent in moderate trading, with declining shares outpacing gaining ones by 545 to 271 shares. Market heavyweight Samsung Electronics bucked the downward trend to end up 1.5 percent, extending gains for the third consecutive session.
South Korea's won fell for the first time in three sessions after Finance Minister Bahk Jae-wan said the government would make all efforts to stabilize the exchange rate. "The government will keep close tabs on any developments in the local and global foreign exchange markets and take necessary measures in accordance with any such developments," the finance minister was quoted as saying in a weekly crisis management meeting.
New Zealand shares ended slightly subdued following mixed regional cues. The benchmark NZX-50 index slipped 2 points or 0.04 percent to 3,971, dragged down by Sky Network Television and Hallenstein Glasson Holdings, which ended down about 2 percent each. Heavyweight Telecom lost 1.7 percent after the country's biggest phone company said its $300 million share buy-back program announced in February was two-third complete.
Fletcher Building added a percent to hit a 13-month high after the nation's largest construction company gave an upbeat earnings outlook for the 2013 financial year yesterday. Diligent Board Member Services rallied 2.7 percent on speculation the company is mulling a Nasdaq listing, while shares of Xero, the cloud-based accounting platform provider, rose 4.1 percent.
Elsewhere, India's benchmark Sensex was moving up 0.7 percent, Indonesia's Jakarta Composite index was up marginally and Singapore Straits Times index was gaining 0.1 percent, while key benchmark indexes in Malaysia and Taiwan were down 0.1 percent and 0.8 percent, respectively.
On Wall Street, stocks showed a lack of direction before closing roughly flat overnight, after Federal Reserve Chairman Ben Bernanke warned that the Fed does not have the tools to offset the negative impact of the U.S. going over the fiscal cliff. Bernanke also said that the U.S. economy continues to be hampered by the lingering effects of the financial crisis on its productive potential and by a number of headwinds that have hindered the normal cyclical adjustment of the economy. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | Crude Up Ahead Of Official Inventories Data
The price of crude oil was recovering from its previous session's steep fall Wednesday morning as trader await cues from the official inventories data from the EIA, due out later during the sessions.
Light Sweet Crude Oil (WTI) futures for January delivery, added $0.75 to $87.50 a barrel. Yesterday, oil lost nearly 3 percent as supply concerns eased with developments in the Middle East suggest mediators were on the verge of a breakthrough for an immediate end to hostilities between Israel and Hamas that controls the Gaza Strip. Oil prices also tracked a declining equity market as investors await the outcome of the euro zone finance ministers meeting that decides on the next tranche of bailout aid to Greece.
Tuesday after the market hours, the API said US crude oil inventories fell 1.90 million barrels and gasoline stocks dipped 4.80 million barrels in the weekended November 16.
The price of gold was steady around $1,725 Wednesday morning as traders focus on Middle-East tensions and US fiscal cliff talks.
Gold for December delivery, the most actively traded contract, edged up $2.10 to $1,725.70 an ounce. Yesterday, gold ended lower mostly on profit-taking even as the euro traded lower and investors await the outcome of the euro zone finance ministers meet on Greece. Some upbeat housing starts data from the U.S. also saw appeal for the precious metal wane, although building permits dropped in October.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,342.20 tons.
This morning, the U.S. dollar was leveling off from its 2-week low versus the euro and a weekly low against sterling. The buck was extending its 7-month high versus the yen and ticking higher against the Swiss franc.
In economic news from the euro zone, Bank of England policymakers decided to retain quantitative easing at GBP 375 billion through a split vote early November, as David Miles sought an increase of GBP 25 billion citing the slackness in the economy. Eight members of the Monetary Policy Committee agreed that maintaining the size of the asset purchase programme was appropriate, minutes showed Wednesday. The meeting was held on November 07 and 08.
Traders will look to the weekly jobless claims report from the U.S. Labor Department due out at 8.30 a.m ET. Economists expect claims to decline to 415,000 from 439,000 in the previous week.
Today during trading hours, the EIA will release its US crude oil inventories report for the weekended November 16. Analysts expect crude oil inventories to jump 1 million barrels and gasoline stocks to add 1.25 million barrels last week. |
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