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Daily FX Commentary: (Morning Report)
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Daily Market Commentary: (Evening Report)
Footsie up, but Eurozone fears limit gains
Market Movers
techMARK 2,113.51 -0.14%
FTSE 100 5,851.51 +0.10%
FTSE 250 11,464.03 +0.24%
Market Movers
techMARK 2,113.51 -0.14%
FTSE 100 5,851.51 +0.10%
FTSE 250 11,464.03 +0.24%
FTSE 100 nudges higher for fifth straight gain
Cooling inflation in China boosts stimulus hopes
ECB cuts growth forecasts
London's Footsie swung between gains and losses on Thursday as hopes of Chinese stimulus were offset by concerns about weak growth in the Eurozone; however, the benchmark index finished slightly in the blue as it extended its winning streak to five straight days.
Chinese consumer price inflation slowed to 1.8% in July from a 2.2% increase in June, according to the National Bureau of Statistics in Beijing. While this was broadly in line with expectations, analysts are saying this morning that this has left the door open to more monetary easing in the world's second-largest economy.
However, the European Central Bank's (ECB's) monthly report dampened sentiment today after the Bank downgraded its growth prospects for the Eurozone economy. The ECB now expects the region to contract by 0.3% this year, slightly worse than the 0.2% fall originally estimated, while 2013 growth will be 0.6%, under the previous forecast of 1%.
"Survey indicators generally disappointed in July, hinting at a further weakening of momentum entering 3Q12. While we still project EMU-wide real GDP to shrink another 0.2% in the current quarter, we now see some modest downside risks to our forecast," said analysts at UniCredit in an emailed note this afternoon.
The ECB's growth downgrades come one day after the Bank of England reduced its forecasts for gross domestic product in the UK, now expecting no growth for the economy this year.
Meanwhile, DBRS has decided to cut Spain’s rating two notches to 'A (low)' and downgraded Italy by one notch to 'A', although it kept its negative outlook on both countries. The Canadian credit ratings agency is one of the four used by the ECB to determine the charges when accepting sovereign debt as collateral.
Cooling inflation in China boosts stimulus hopes
ECB cuts growth forecasts
London's Footsie swung between gains and losses on Thursday as hopes of Chinese stimulus were offset by concerns about weak growth in the Eurozone; however, the benchmark index finished slightly in the blue as it extended its winning streak to five straight days.
Chinese consumer price inflation slowed to 1.8% in July from a 2.2% increase in June, according to the National Bureau of Statistics in Beijing. While this was broadly in line with expectations, analysts are saying this morning that this has left the door open to more monetary easing in the world's second-largest economy.
However, the European Central Bank's (ECB's) monthly report dampened sentiment today after the Bank downgraded its growth prospects for the Eurozone economy. The ECB now expects the region to contract by 0.3% this year, slightly worse than the 0.2% fall originally estimated, while 2013 growth will be 0.6%, under the previous forecast of 1%.
"Survey indicators generally disappointed in July, hinting at a further weakening of momentum entering 3Q12. While we still project EMU-wide real GDP to shrink another 0.2% in the current quarter, we now see some modest downside risks to our forecast," said analysts at UniCredit in an emailed note this afternoon.
The ECB's growth downgrades come one day after the Bank of England reduced its forecasts for gross domestic product in the UK, now expecting no growth for the economy this year.
Meanwhile, DBRS has decided to cut Spain’s rating two notches to 'A (low)' and downgraded Italy by one notch to 'A', although it kept its negative outlook on both countries. The Canadian credit ratings agency is one of the four used by the ECB to determine the charges when accepting sovereign debt as collateral.
Europe Market Report
Nokia, Nestle surge; bond yields rise
Stocks up slightly Nestle results drive sentiment
Nokia surges on app business sale
FTSE 100: +0.01%
Dax 30: -0.06%
Stoxx 600: +0.33%
Cac 40: +0.47%
Ibex 35: -0.63%
FTSE MIB: -0.01%
Most major European stock markets posted small gains on Thursday as Chinese inflation offered no surprises. The cost of living in China rose 1.8% in July, compared to the same month last year. This was broadly in line with expectations.
There were some significant shifts for shorter term sovereign bonds on Thursday as investors pondered whether the European Central Bank (ECB) has the firepower and political backing to ease Europe’s debt crisis.
The two-year Italian bond yield had climbed seven basis points by 15:23 in London to 3.27% while Spanish equivalents had gained 16 basis points to 4.03%.
This implies investors are losing patience with the ECB’s protestation that it “would do whatever it takes to preserve the euro”. President Mario Draghi’s comments at the beginning of the month had brought borrowing costs down but, at the shorter end of the spectrum, they are rising once again.
US Market Report
Jobless boost keeps stocks onside
Dow Jones: +4 at 13,179
S&P 500: +2 at 1,405
NASDAQ Composite: +8 at 3,019
Dow Jones: +4 at 13,179
S&P 500: +2 at 1,405
NASDAQ Composite: +8 at 3,019
US stocks kept their winning streak on the go in the morning session, though the advance was anything buyt convincing.
Jobless claims gave a bit of support, falling unexpectedly to 361,000 last week; economists had been predicting a rise to 370,000.
E*Trade marked up Jobless claims gave a bit of support, falling unexpectedly to 361,000 last week; economists had been predicting a rise to 370,000.
Stockbroker E*Trade was wanted
after jettisoning its Chief Executive Officer (CEO) Steven Freiberg.
CHairman Frank Petrilli will assume executive duties while the company looks for a new CEO.
Monster Beverage released results after the bell yesterday and to say the soft drinks maker's figures fell flat would be an understatement. Second quarter profit rose 30$ to $110m, equivalent to 59 cenrts a share but the market had pencilled in a figure of 62 cents for ernings per share. That was the cue for proift takers to bale out of the high-flying shares.
Gold miner Randgold Resources jumped after seeing profits surge in the first half of 2012 on the back of a record performance from its flagship Loulo-Gounkoto complex in Mali.
Other marketsMonster Beverage released results after the bell yesterday and to say the soft drinks maker's figures fell flat would be an understatement. Second quarter profit rose 30$ to $110m, equivalent to 59 cenrts a share but the market had pencilled in a figure of 62 cents for ernings per share. That was the cue for proift takers to bale out of the high-flying shares.
Gold miner Randgold Resources jumped after seeing profits surge in the first half of 2012 on the back of a record performance from its flagship Loulo-Gounkoto complex in Mali.
US Treasuries are sliding back, with the yield on the benchmark 10-year Treasury rising to 1.72% from 1.69% yesterday evening.
West Texas light sweet crude for September delivery is trading at $93.87 a barrel in New York, up 52 cents on the day.
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