Forex Overnight: EUR is trading marginally lower
The EUR is trading lower against the USD this morning, after Jean-Claude Juncker, Luxembourg Prime Minister, indicated that a bailout for Greece must include “voluntary” investor participation.
The JPY is trading 0.3% lower against the USD, amid market speculation that the Bank of Japan will introduce additional stimulus measures to boost economic growth. Additionally, a report this morning showed that Japan’s machinery orders unexpectedly fell in April.
At 6am, the EUR is trading 0.1% lower against the USD at $1.4341, while the GBP is trading slightly higher against the USD at $1.6230. The EUR is trading 0.1% lower against the GBP at £0.8837.
The AUD is trading marginally higher against the USD.
UK Stocks: Likely to open flat
UK markets are likely to open flat, with the FTSE 100 expected to open 3 points lower to 5 points higher.
Latchways, Majestic Wine, Advanced Computer Software Group, British Smaller Companies, and Blavod Wines & Spirits are scheduled to report their results later today.
The Sunday Times has reported that Glencore is considering a takeover bid for ENRC worth about £12.0 billion.
The Sunday Telegraph has reported that Lloyds Banking Group is planning to cut 15,000 jobs as part of its £1.0 billion cost-saving plan.
Taiwan authorities have ordered GlaxoSmithKline to recall two antibiotic products, as an industrial plasticiser was found in samples of the medicines used for the treatment of bacterial infections.
According to the Financial Times, the Chief Executive Officer of Unilever, Paul Polman, has confirmed that the company would not require acquisitions to meet its target of doubling revenues.
Asia: Trading lower
Asian markets are trading lower this morning.
In Japan, Toyota Motor is trading lower, after the company projected a wider-than-anticipated decline in its full year profit. Tyres and other rubber products manufacturers, Bridgestone, Sumitomo Rubber Industries and Yokohama Rubber Company have retreated. Tokyo Electric Power Company is trading lower, on news that the seawater taken near the leaking plant has radioactive strontium level of about 240 times the legal limit. At 6 am, the Nikkei is trading 0.8% lower at 9,434.9.
In South Korea, Hynix Semiconductor is trading higher, amid news that LG Group was interested in buying a 15.0% stake in the company. In Hong Kong, Citic Pacific, Sino Land, Cosco Pacific and China Resources Land are trading lower. In China, ICBC, China Construction Bank and Agricultural Bank of China are trading lower, after a report indicated that new loans dropped in May, compared to the previous month. Chongqing Changan Automobile is trading lower, after the company reported an annual drop in its vehicle sales in May.
US Stocks: Futures trading flat
The S&P 500 Index futures is trading flat at 6am.
In corporate releases, Majesco Entertainment Company, Crown Crafts, IDT Corporation, Quanex Building Products Corporation, Pure Bioscience and Motorcar Parts of America would announce their results today.
In after hours trading on Friday, Ness Technologies surged 11.2%, after it indicated that it has agreed to be acquired by an affiliate of Citi Venture Capital International, for about $307.0 million. Gilead Sciences lost 2.1%, after it stated that it has received a subpoena from the US Justice Department, requesting documents related to the manufacture, quality and distribution practices for several drugs, including Atripla, Emtriva, Hepsera, Letairis, Truvada and Viread.
The S&P 500 index dropped 1.4% on Friday, as concerns persisted over the state of the global economy. Good Year Tire & Rubber slumped 6.7%, amid fears of demand slowdown in the replacement market for tyres. Banks, Goldman Sachs, Bank of America, and Morgan Stanley advanced 1.8%, 1.4%, and 0.8%, respectively, amid reports that international regulators are considering toning down proposed capital rules for large banks. Other financial sector stocks traded weak, with Janus Capital, E*Trade Financial, Genworth Financial, BlackRock, Huntington Bancshares, SunTrust Banks, M&T Bank, and Bank of New York Mellon losing 4.6%, 4.0%, 3.5%, 3.4%, 1.9%,1.4%,1.2% and 1.1%, respectively. AK Steel Holding, up 3.6%, was the largest gainer in the index.
European Stocks: Expected to open flat
European markets are expected to open flat. The DAX is likely to open 8 points lower to 3 points higher, while the CAC is expected to open 3 points lower to 2 points higher.
Gruppo Coin is scheduled to report its results later today.
According to Reuters, ten employees of Deutsche Bank's South Korean securities unit have resigned to join Barclays, after some of the unit's operations were suspended in April, following stock market manipulation allegations.
Linde has announced its plans to invest about $117 million to build an air processing plant in Indonesia, as a move to expand its operations in emerging markets.
Chief Executive Officer of Adidas, Herbert Hainer, has reportedly indicated that the company aims to reach a target of €500 million of sales of outdoor products, by 2015, without acquisitions.
LVMH Moet Hennessy Louis Vuitton’s Sephora cosmetics brand has indicated that it has acquired an additional 20.0% in Russia’s Ile de Beaute, raising its total stake to 65.0%.
Der Sonntag has reported that Actelion has indicated that it could consider putting itself up for sale, or consider other strategic options, if its experimental drug, Macitentan, fails.
The head of Airbus, Thomas Enders, has reportedly indicated that its parent, EADS, has to be protected from hostile takeovers, but does not require German state as a shareholder for the same.
Macro Update
Inflation expectations are key concern, says BOE’s Dale
Bank of England’s Chief Economist, Spencer Dale, has indicated that inflation expectations are a key concern for the central bank, and policymakers could not be totally sure that they remain well-anchored.
Euro could withstand Greek default, says Bundesbank President
Bundesbank President, Jens Weidmann, has indicated that a Greek default would not destabilize the Euro. He stated that Greece’s implementation of austerity measures and asset sales was crucial to securing the support to prevent a default.
Japanese core machinery orders fall in April
On a monthly basis, core machinery orders in Japan declined 3.3% in April, following a 2.9% rise posted in the previous month.
China to increase trade with Latin America
Chinese Vice President, Xi Jinping, has announced that China would work with Latin America to increase mutual exports of value-added products.
The EUR is trading lower against the USD this morning, after Jean-Claude Juncker, Luxembourg Prime Minister, indicated that a bailout for Greece must include “voluntary” investor participation.
The JPY is trading 0.3% lower against the USD, amid market speculation that the Bank of Japan will introduce additional stimulus measures to boost economic growth. Additionally, a report this morning showed that Japan’s machinery orders unexpectedly fell in April.
At 6am, the EUR is trading 0.1% lower against the USD at $1.4341, while the GBP is trading slightly higher against the USD at $1.6230. The EUR is trading 0.1% lower against the GBP at £0.8837.
The AUD is trading marginally higher against the USD.
UK Stocks: Likely to open flat
UK markets are likely to open flat, with the FTSE 100 expected to open 3 points lower to 5 points higher.
Latchways, Majestic Wine, Advanced Computer Software Group, British Smaller Companies, and Blavod Wines & Spirits are scheduled to report their results later today.
The Sunday Times has reported that Glencore is considering a takeover bid for ENRC worth about £12.0 billion.
The Sunday Telegraph has reported that Lloyds Banking Group is planning to cut 15,000 jobs as part of its £1.0 billion cost-saving plan.
Taiwan authorities have ordered GlaxoSmithKline to recall two antibiotic products, as an industrial plasticiser was found in samples of the medicines used for the treatment of bacterial infections.
According to the Financial Times, the Chief Executive Officer of Unilever, Paul Polman, has confirmed that the company would not require acquisitions to meet its target of doubling revenues.
Asia: Trading lower
Asian markets are trading lower this morning.
In Japan, Toyota Motor is trading lower, after the company projected a wider-than-anticipated decline in its full year profit. Tyres and other rubber products manufacturers, Bridgestone, Sumitomo Rubber Industries and Yokohama Rubber Company have retreated. Tokyo Electric Power Company is trading lower, on news that the seawater taken near the leaking plant has radioactive strontium level of about 240 times the legal limit. At 6 am, the Nikkei is trading 0.8% lower at 9,434.9.
In South Korea, Hynix Semiconductor is trading higher, amid news that LG Group was interested in buying a 15.0% stake in the company. In Hong Kong, Citic Pacific, Sino Land, Cosco Pacific and China Resources Land are trading lower. In China, ICBC, China Construction Bank and Agricultural Bank of China are trading lower, after a report indicated that new loans dropped in May, compared to the previous month. Chongqing Changan Automobile is trading lower, after the company reported an annual drop in its vehicle sales in May.
US Stocks: Futures trading flat
The S&P 500 Index futures is trading flat at 6am.
In corporate releases, Majesco Entertainment Company, Crown Crafts, IDT Corporation, Quanex Building Products Corporation, Pure Bioscience and Motorcar Parts of America would announce their results today.
In after hours trading on Friday, Ness Technologies surged 11.2%, after it indicated that it has agreed to be acquired by an affiliate of Citi Venture Capital International, for about $307.0 million. Gilead Sciences lost 2.1%, after it stated that it has received a subpoena from the US Justice Department, requesting documents related to the manufacture, quality and distribution practices for several drugs, including Atripla, Emtriva, Hepsera, Letairis, Truvada and Viread.
The S&P 500 index dropped 1.4% on Friday, as concerns persisted over the state of the global economy. Good Year Tire & Rubber slumped 6.7%, amid fears of demand slowdown in the replacement market for tyres. Banks, Goldman Sachs, Bank of America, and Morgan Stanley advanced 1.8%, 1.4%, and 0.8%, respectively, amid reports that international regulators are considering toning down proposed capital rules for large banks. Other financial sector stocks traded weak, with Janus Capital, E*Trade Financial, Genworth Financial, BlackRock, Huntington Bancshares, SunTrust Banks, M&T Bank, and Bank of New York Mellon losing 4.6%, 4.0%, 3.5%, 3.4%, 1.9%,1.4%,1.2% and 1.1%, respectively. AK Steel Holding, up 3.6%, was the largest gainer in the index.
European Stocks: Expected to open flat
European markets are expected to open flat. The DAX is likely to open 8 points lower to 3 points higher, while the CAC is expected to open 3 points lower to 2 points higher.
Gruppo Coin is scheduled to report its results later today.
According to Reuters, ten employees of Deutsche Bank's South Korean securities unit have resigned to join Barclays, after some of the unit's operations were suspended in April, following stock market manipulation allegations.
Linde has announced its plans to invest about $117 million to build an air processing plant in Indonesia, as a move to expand its operations in emerging markets.
Chief Executive Officer of Adidas, Herbert Hainer, has reportedly indicated that the company aims to reach a target of €500 million of sales of outdoor products, by 2015, without acquisitions.
LVMH Moet Hennessy Louis Vuitton’s Sephora cosmetics brand has indicated that it has acquired an additional 20.0% in Russia’s Ile de Beaute, raising its total stake to 65.0%.
Der Sonntag has reported that Actelion has indicated that it could consider putting itself up for sale, or consider other strategic options, if its experimental drug, Macitentan, fails.
The head of Airbus, Thomas Enders, has reportedly indicated that its parent, EADS, has to be protected from hostile takeovers, but does not require German state as a shareholder for the same.
Macro Update
Inflation expectations are key concern, says BOE’s Dale
Bank of England’s Chief Economist, Spencer Dale, has indicated that inflation expectations are a key concern for the central bank, and policymakers could not be totally sure that they remain well-anchored.
Euro could withstand Greek default, says Bundesbank President
Bundesbank President, Jens Weidmann, has indicated that a Greek default would not destabilize the Euro. He stated that Greece’s implementation of austerity measures and asset sales was crucial to securing the support to prevent a default.
Japanese core machinery orders fall in April
On a monthly basis, core machinery orders in Japan declined 3.3% in April, following a 2.9% rise posted in the previous month.
China to increase trade with Latin America
Chinese Vice President, Xi Jinping, has announced that China would work with Latin America to increase mutual exports of value-added products.
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