Forex Overnight: USD trading stronger
The USD is trading higher against most of the key currencies, amid a rise in risk aversion. An inconclusive meeting of European Union (EU) officials in Poland has led the EUR to trade weaker against the major currencies this morning. Additionally, the EUR is under pressure, ahead of the EU and the International Monetary Fund’s (IMF) assessment, later today, on the approval of the next tranche of aid for Greece. At 6 am, the EUR has weakened 1.0 percent against the USD to trade at $1.3665, and has declined 0.4 percent against the GBP to trade at £0.8706.
The JPY is trading 0.2 percent lower against the USD, following indications from the Japanese government that it might act to curb the appreciation in the Yen.
The AUD and CAD have lost 1.2 percent and 0.6 percent against the USD, respectively, amid rising concerns about global economic growth.
UK Stocks: Expected to open in negative territory
The FTSE 100 is likely to open 47 to 52 points in the red.
No economic release scheduled for today.
Highland Gold Mining , Petra Diamonds, Greenko Group and International Ferro Metals are scheduled to report their results later today.
Bob Dudley, the CEO of BP, has stated that the company remains committed to achieve its oil production targets at Iraq’s Rumaila field and is not renegotiating contract terms.
The South China Morning Post has reported that Standard Chartered has stated that it does not plan to lay off jobs in Hong Kong.
The Sunday Times has reported that Tesco is mulling to bid for all or part of The Garden Centre Group, in a £300.0 million sale managed by Lloyds Banking Group.
The Financial Times has reported that Tim Tookey, the Finance Director of Lloyds Banking Group, is set to resign from the bank to take over as the CFO of Friends Life.
According to the Sunday Telegraph, William Hill is in the initial discussion stage to acquire Probability Plc, the mobile-phone gaming company.
Asia: Trading lower
Persistent concerns about the sovereign debt crisis in Eurozone are weighing on the Asian markets this morning.
In Japan, markets are closed on account of a holiday for Respect for the Aged Day.
In Hong Kong, markets are trading lower, with financial sector stocks trading in negative territory. Bank of China Limited, Bank of Communications and Ping An Insurance Group have retreated, amid reports that Greece might not receive its next aid tranche without further austerity measures. Cnooc Limited and Jiangxi Copper Company have declined, on concerns about the demand outlook for commodities. In China, Poly Real Estate Group and Industrial & Commercial Bank of China have lost value, after data indicating a rise in new-home prices in all cities in August raised speculation of further monetary tightening. Sany Heavy Industry has eased, after it stated that it plans to raise up to $3.3 billion in a Hong Kong initial public offering. Despite South Korean markets trading weaker, Hyundai Engineering & Construction has advanced, after it stated that it has received a KRW 1.6 trillion order to construct a thermal power plant in Vietnam.
US Stocks: Futures trading weaker
At 6 am, S&P 500 Index Futures are trading 20.1 points lower.
NAHB Housing Market Index for September is scheduled for release today.
Lennar Corporation and Accuray are scheduled to announce their results today.
Goodrich Corporation continued its regular session gains in the extended trading session on Friday, soaring 9.8 percent, amid reports that United Technologies Corporation might make a takeover bid for the company. Wipro, Almaden Minerals and NeoProbe featured amongst other key gainers, rising 8.2 percent, 6.3 percent and 5.7 percent, respectively. Healthcare sector stocks, Complete Genomics, Isis Pharmaceuticals and Curis, the major laggards in the after hours session, tumbled 21.7 percent, 6.8 percent and 6.7 percent, respectively.
On Friday, the S&P 500 index added 0.6 percent in the regular trading session, amid optimism that European leaders would act jointly to tackle the Eurozone debt crisis. Aerospace and defence sector stocks, Rockwell Collins, Goodrich Corporation, Textron and Tyco International jumped 7.8 percent, 7.4 percent, 6.8 percent and 3.1 percent, respectively, following a report that United Technologies Corporation is seeking financing for a major acquisition in the U.S. Amazon.com and Procter & Gamble climbed 5.2 percent and 2.5 percent, respectively, after U.S. consumer sentiment index rose in August. eBay surged 5.2 percent, after a broker upgraded its recommendation on the stock to “Out-Perform” from “Neutral” and hiked its target price. General Electric added 1.6 percent, after it signed two new joint ventures in Russia. Netflix plummeted 8.3 percent, after it slashed its U.S. subscriber addition estimates for the third quarter.
European Stocks: Likely to open in the red
The DAX and CAC are expected to trade 53 to 60 points and 48 to 51 points lower, respectively, at open.
Eurozone’s Construction Output is scheduled for release today.
Tipiak SA, HF Company SA, Maximiles SA and Coheris SA are scheduled to report their results today.
Siemens AG has abandoned plans to make nuclear generating equipment with Russia’s Rosatom, following the German government’s decision to phase out nuclear power by 2022.
Markus Ozegovich, the head of Volkswagen AG in Russia, expects the Russian car market to become the largest in Europe by 2013.
Il Sole 24 Ore has reported that Edison SpA’s Italian investors may give their stake to Electricite de France SA in exchange for a 50.0 percent of the former’s Edipower unit.
Les Echos has reported that BNP Paribas SA is planning to save €200.0 million a year in its Belgium operations.
Peabody Energy Corporation and ArcelorMittal SA have announced that they have extended their joint bid for coking coal miner, Macarthur Coal Ltd., by 17 days.
UBS AG has raised its estimate of losses from unauthorised speculative trades to $2.3 billion.
Macro Update
UK house prices rise
On a monthly basis, average house prices in the U.K. edged 0.7 percent higher in September, compared to a 2.1 percent decline posted in the previous month.
QE gave economy significant boost, indicates BoE
The Bank of England (BoE), in its quarterly bulletin, has indicated that the first round of asset purchases gave the economy a significant boost, but any future quantitative easing (QE) may not have the same impact.
Moody's says Italy's ratings under review
Moody's Investors Service has stated that it is continuing its review for possible downgrade of Italy's Aa2 local and foreign currency government bond ratings, and would try to conclude its review within the next month.
Chinese Premier pledges to step up inflation fight
Chinese Premier, Wen Jiabao, has indicated that the government will step up the fight to restrain inflation, which has been led by steep rises in the cost of food.
Economic Calendar
The USD is trading higher against most of the key currencies, amid a rise in risk aversion. An inconclusive meeting of European Union (EU) officials in Poland has led the EUR to trade weaker against the major currencies this morning. Additionally, the EUR is under pressure, ahead of the EU and the International Monetary Fund’s (IMF) assessment, later today, on the approval of the next tranche of aid for Greece. At 6 am, the EUR has weakened 1.0 percent against the USD to trade at $1.3665, and has declined 0.4 percent against the GBP to trade at £0.8706.
The JPY is trading 0.2 percent lower against the USD, following indications from the Japanese government that it might act to curb the appreciation in the Yen.
The AUD and CAD have lost 1.2 percent and 0.6 percent against the USD, respectively, amid rising concerns about global economic growth.
UK Stocks: Expected to open in negative territory
The FTSE 100 is likely to open 47 to 52 points in the red.
No economic release scheduled for today.
Highland Gold Mining , Petra Diamonds, Greenko Group and International Ferro Metals are scheduled to report their results later today.
Bob Dudley, the CEO of BP, has stated that the company remains committed to achieve its oil production targets at Iraq’s Rumaila field and is not renegotiating contract terms.
The South China Morning Post has reported that Standard Chartered has stated that it does not plan to lay off jobs in Hong Kong.
The Sunday Times has reported that Tesco is mulling to bid for all or part of The Garden Centre Group, in a £300.0 million sale managed by Lloyds Banking Group.
The Financial Times has reported that Tim Tookey, the Finance Director of Lloyds Banking Group, is set to resign from the bank to take over as the CFO of Friends Life.
According to the Sunday Telegraph, William Hill is in the initial discussion stage to acquire Probability Plc, the mobile-phone gaming company.
Asia: Trading lower
Persistent concerns about the sovereign debt crisis in Eurozone are weighing on the Asian markets this morning.
In Japan, markets are closed on account of a holiday for Respect for the Aged Day.
In Hong Kong, markets are trading lower, with financial sector stocks trading in negative territory. Bank of China Limited, Bank of Communications and Ping An Insurance Group have retreated, amid reports that Greece might not receive its next aid tranche without further austerity measures. Cnooc Limited and Jiangxi Copper Company have declined, on concerns about the demand outlook for commodities. In China, Poly Real Estate Group and Industrial & Commercial Bank of China have lost value, after data indicating a rise in new-home prices in all cities in August raised speculation of further monetary tightening. Sany Heavy Industry has eased, after it stated that it plans to raise up to $3.3 billion in a Hong Kong initial public offering. Despite South Korean markets trading weaker, Hyundai Engineering & Construction has advanced, after it stated that it has received a KRW 1.6 trillion order to construct a thermal power plant in Vietnam.
US Stocks: Futures trading weaker
At 6 am, S&P 500 Index Futures are trading 20.1 points lower.
NAHB Housing Market Index for September is scheduled for release today.
Lennar Corporation and Accuray are scheduled to announce their results today.
Goodrich Corporation continued its regular session gains in the extended trading session on Friday, soaring 9.8 percent, amid reports that United Technologies Corporation might make a takeover bid for the company. Wipro, Almaden Minerals and NeoProbe featured amongst other key gainers, rising 8.2 percent, 6.3 percent and 5.7 percent, respectively. Healthcare sector stocks, Complete Genomics, Isis Pharmaceuticals and Curis, the major laggards in the after hours session, tumbled 21.7 percent, 6.8 percent and 6.7 percent, respectively.
On Friday, the S&P 500 index added 0.6 percent in the regular trading session, amid optimism that European leaders would act jointly to tackle the Eurozone debt crisis. Aerospace and defence sector stocks, Rockwell Collins, Goodrich Corporation, Textron and Tyco International jumped 7.8 percent, 7.4 percent, 6.8 percent and 3.1 percent, respectively, following a report that United Technologies Corporation is seeking financing for a major acquisition in the U.S. Amazon.com and Procter & Gamble climbed 5.2 percent and 2.5 percent, respectively, after U.S. consumer sentiment index rose in August. eBay surged 5.2 percent, after a broker upgraded its recommendation on the stock to “Out-Perform” from “Neutral” and hiked its target price. General Electric added 1.6 percent, after it signed two new joint ventures in Russia. Netflix plummeted 8.3 percent, after it slashed its U.S. subscriber addition estimates for the third quarter.
European Stocks: Likely to open in the red
The DAX and CAC are expected to trade 53 to 60 points and 48 to 51 points lower, respectively, at open.
Eurozone’s Construction Output is scheduled for release today.
Tipiak SA, HF Company SA, Maximiles SA and Coheris SA are scheduled to report their results today.
Siemens AG has abandoned plans to make nuclear generating equipment with Russia’s Rosatom, following the German government’s decision to phase out nuclear power by 2022.
Markus Ozegovich, the head of Volkswagen AG in Russia, expects the Russian car market to become the largest in Europe by 2013.
Il Sole 24 Ore has reported that Edison SpA’s Italian investors may give their stake to Electricite de France SA in exchange for a 50.0 percent of the former’s Edipower unit.
Les Echos has reported that BNP Paribas SA is planning to save €200.0 million a year in its Belgium operations.
Peabody Energy Corporation and ArcelorMittal SA have announced that they have extended their joint bid for coking coal miner, Macarthur Coal Ltd., by 17 days.
UBS AG has raised its estimate of losses from unauthorised speculative trades to $2.3 billion.
Macro Update
UK house prices rise
On a monthly basis, average house prices in the U.K. edged 0.7 percent higher in September, compared to a 2.1 percent decline posted in the previous month.
QE gave economy significant boost, indicates BoE
The Bank of England (BoE), in its quarterly bulletin, has indicated that the first round of asset purchases gave the economy a significant boost, but any future quantitative easing (QE) may not have the same impact.
Moody's says Italy's ratings under review
Moody's Investors Service has stated that it is continuing its review for possible downgrade of Italy's Aa2 local and foreign currency government bond ratings, and would try to conclude its review within the next month.
Chinese Premier pledges to step up inflation fight
Chinese Premier, Wen Jiabao, has indicated that the government will step up the fight to restrain inflation, which has been led by steep rises in the cost of food.
Economic Calendar
|
Country |
BST |
Economic Indicator |
Relevance
|
Consensus/*Actual
|
Previous
|
Frequency
|
|
UK |
0:01 |
Rightmove House Prices (MoM) (Sep) |
PP
|
0.70%*
|
-2.10%
|
Monthly
|
|
UK |
0:01 |
Rightmove House Prices (YoY) (Sep) |
PP
|
1.50%*
|
-0.30%
|
Monthly
|
|
Eurozone |
10:00 |
Construction Output s.a. (MoM) (Jul) |
P
|
-
|
-1.80%
|
Monthly
|
|
Eurozone |
10:00 |
Construction Output w.d.a. (YoY) (Jul) |
P
|
-
|
-11.30%
|
Monthly
|
|
US |
15:00 |
NAHB Housing Market Index (Sep) |
P
|
15.00
|
15.00
|
Monthly
|
|
Japan |
- |
Respect-for-the-Aged Day Bank Holiday |
|
-
|
-
|
-
|
Note: PPPHigh PPMedium PLow
Corporate Calendar
Corporate Calendar
|
Country |
Company Name |
Index |
Announcement |
|
UK |
Alliance Trust Plc |
FTSE All Share |
Interim |
|
UK |
Dairy Crest Group Plc |
FTSE All Share |
Trading |
|
UK |
French Connection Group Plc |
FTSE All Share |
Interim |
|
UK |
International Ferro Metals Limited |
FTSE All Share |
Prelim |
|
UK |
Ocado Group Plc |
FTSE All Share |
Trading |
|
UK |
PZ Cussons Plc |
FTSE All Share |
Trading |
|
US |
Lennar Corporation |
S&P 500 |
Q3 Earnings Release |
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