Forex Overnight: EUR is trading higher
The EUR is trading higher this morning against the major currencies, after the head of the euro-area finance ministers’ group, Jean-Claude Juncker, yesterday, signaled that the European Union leaders would decide on additional aid for Greece by the end of June 2011.
The JPY is trading 0.4% lower against the USD, after the Moody’s Investors Service placed Japan’s Aa2 local and foreign currency bond ratings on review for a possible downgrade.
At 6am, the EUR is trading 0.7% higher against the USD at $1.4382, while GBP is trading 0.4% higher against the USD at $1.6544. The EUR is trading 0.3% higher against the GBP at £0.8694.
The AUD is trading 0.2% higher against the USD.
UK Stocks: Likely to open higher
UK markets are likely to open higher, with the FTSE 100 expected to open 37 to 42 points higher.
Renold, Majedie Investments, GCP Infrastructure Investments, Artemis and Hargreave Hale are scheduled to report their results later today.
Royal Bank of Scotland and its local Chinese partner, Guolian Securities, have launched a joint venture in China. The bank would hold a one-third stake in the venture.
The Daily Telegraph has reported that Debenhams is in talks with Sears about opening concession or franchise areas in Sears outlets across the US.
The Telegraph has reported that Wolseley has hired Bank of America Merrill Lynch to run an auction of Build Center, the building trade supplier, Electric Center, the electrical products wholesaler, and Encon, the insulation specialist.
Novae Group and Omega Insurance are in preliminary talks over a £500.0 million merger, as a move towards consolidation in the industry.
The Chief Executive Officer of Tesco, has indicated that the company is to planning to launch new Tesco-owned brands, in both the food and non-food businesses.
Asia: Trading higher
Asian markets are trading higher this morning, amid optimism that the European officials would offer additional aid for Greece.
In Japan, export sector stocks, Sony Corporation, Elpida Memory and Sharp Corporation are trading higher, as the Yen weakened against the Euro. Sojitz Corporation has gained, after news indicated that it plans to boost production of rare metals in Portugal and Canada by about 60.0%, between 2012 and 2013. Tabuchi Electric Company has risen, after it announced plans to raise ¥824 million by selling shares to TDK Corporation, and to four other companies. Tokyo Electric Power Company is trading lower, after Standard & Poor’s lowered its credit rating to Junk. At 6 am, the Nikkei is trading 1.4% higher at 9,640.5.
In South Korea, Samsung Electronics has gained, after it announced its decision to commence mass production at its liquid crystal display plant in Suzhou, China, in H1 FY2013. In Hong Kong, Cosco Pacific is trading higher. In China, Huaneng Power International and China Yangtze Power have gained, after reports indicated that the government would increase retail electricity prices beginning next month.
US Stocks: Futures trading higher
US stock index futures are trading higher at 6am, with the S&P 500 Index futures up 8.1 points.
Key economic releases today include Consumer Confidence, Chicago Purchasing Manager Index, Dallas Fed Manufacturing Activity and S&P/Case-Shiller Home Price Index.
In corporate releases, Phillips Van Heusen Corporation, Lions Gate Entertainment Corporation and Eltek would announce their results today.
US markets were closed yesterday, on account of Memorial Day.
European Stocks: Expected to open higher
European markets are expected to open higher. The DAX is likely to open 51 to 57 points higher, while the CAC is expected to open 21 to 27 points higher.
Investors await German Retail Sales and Unemployment Rate, Euro-zone Consumer Price Index and Swiss Gross Domestic Product.
Strabag, Voestalpine, Neopost, Petrolia, Bavarian Nordic, Laurent Perrier and Sevan Marine are scheduled to report their results later today.
Renault has appointed Carlos Tavares as its new Chief Operating Officer, effective immediately.
In overnight news, the Financial Times Deutschland has reported that Bayer would outsource the production of its blockbuster drug, Betaferon, to Boehringer Ingelheim.
The Financial Times Deutschland, citing Munich Re’s board member, Torsten Jeworrek, has reported that the company seeks expansion in the US through more acquisitions.
LVMH Moet Hennessy Louis Vuitton has stated that it wishes to remain a long-term shareholder of Hermes, and denied allegations it was trying to destabilise the latter.
According to the Times of Oman, Alstom has signed a preliminary agreement for constructing an aerial urban metro line in Baghdad, called the Baghdad Elevated Train (BET). The metro plan would cost about $1.5 billion, and would be funded by the French government and banks.
Macro Update
Japanese industrial production rises in April
On a monthly basis, industrial production in Japan climbed 1.0% in April, compared to a 15.5% decline posted in the previous month.
Moody's reviews Japan rating for downgrade
Moody's Investors Service has put Japan's Aa2 local and foreign currency bond ratings on review for a possible downgrade, due to long-term fiscal concerns.
Unemployment rate in Japan climbs in April
On a seasonally adjusted basis, the unemployment rate in Japan rose to 4.7% in April, compared to a 4.6% rate posted in the prior month.
South Korea’s industrial production drops in April
On a month-on-month basis, the industrial production in South Korea fell 1.5% in April, following a 1.4% increase recorded in March.
Australia's current-account deficit widens in 1Q FY2011
On a seasonally adjusted basis, the current account deficit in Australia widened to A$ 10.45 billion for the first quarter of 2011, following an A$ 8.09 billion deficit recorded in the previous quarter.
Australian building approvals drop in April
On a monthly basis, building approvals in Australia fell 1.3% in April, following a revised gain of 8.6% posted in the previous month.
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