ADVFN III World Daily Markets Bulletin

	ADVFN III	World Daily Markets Bulletin
	Daily world financial news

US Market Reports

Tech Stocks Leading The Way Higher On Wall Street Stocks have moved mostly higher over the course of early trading on Wednesday after moving to the downside at the open. The major averages have all climbed into positive territory, with the Nasdaq showing a notable upward move. The major averages have seen some further upside in the past few minutes, reaching new highs for the young session. The Dow is up 35.05 points or 0.3 percent at 12,840.59, the Nasdaq is up 21.80 points or 0.8 percent at 2,931.84 and the S&P 500 is up 5.12 points or 0.4 percent at 1,368.79. Technology stocks have helped to lead the way higher despite disappointing guidance from semiconductor giant Intel (INTC). While Intel reported better than expected second quarter earnings after the close of trading on Tuesday, the company also reported weaker than expected revenues and lowered its full year revenue growth outlook. Nonetheless, shares of Intel have advanced by 2.4 percent. Other semiconductor stocks are moving sharply higher along with Intel, with the Philadelphia Semiconductor Index up by 2.4 percent. With the gain, the index is bouncing off a nearly seven-month closing low. Computer hardware, networking, and software stocks are also seeing considerable strength, contributing to the strong upward move by the tech-heavy Nasdaq. Outside of the tech sector, trucking, housing, and defense stocks are also showing strong moves to the upside. Meanwhile, gold and brokerage stocks are bucking the uptrend. In economic news, the Commerce Department released a report before the start of trading showing a bigger than expected rebound in housing starts in the month of June. The report showed that housing starts jumped 6.9 percent to an annual rate of 760,000 in June from the revised May estimate of 711,000. Economists had expected housing starts to climb to 745,000 from the 708,000 originally reported for the previous month. On the other hand, building permits, an indicator of future housing demand, fell by 3.7 percent to an annual rate of 755,000 in June from the revised May rate of 784,000. Traders are also keeping an eye on Federal Reserve Chairman Ben Bernanke's second day of testimony on Capitol Hill, with the Fed Chief due to face questions from the House Financial Services Committee. In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. While Japan's Nikkei 225 Index edged down by 0.3 percent, China's Shanghai Composite Index advanced by 0.4 percent. Meanwhile, the major European markets are seeing strength on the day. The French CAC 40 Index has jumped by 1.1 percent, while the German DAX Index and the U.K.'s FTSE 100 Index are up by 0.6 percent and 0.4 percent, respectively. In the bond market, treasuries are moving back to the upside after giving back some ground in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.7 basis points at 1.484 percent. Canadian Market Report CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts TSX Flat At Open Wednesday Toronto stocks were little changed at open Wednesday as gauges of most sectors were stuck in the mud, with the S&P/TSX Composite Index edging up 19.60 points or 0.17 percent to 11,590.79. Fertilizer maker Agrium Inc. rose nearly 3 percent after increasing its second quarter earnings guidance to a range of $5.40 to $5.50 per share from the earlier at the top end of its $4.18 to $4.78 per share. Analysts expect the company to report earnings of $4.75 per share. Potash Corp. was up over 1 percent. CIC Energy Corp. soared 18 percent after confirming that it is in advanced negotiations with Jindal Steel & Power (Mauritius) Limited regarding the possible acquisition of the company at an indicative price of C$2.00 per share. Meanwhile, gold stocks were under pressure amid a fall in bullion prices. Goldcorp. and Detour Gold were down around 2 percent each, while Agnico-Eagle Mines and Barrick Gold were slipping around 1 percent each. Broadcasting and wireless communications company Aastra Technologies lost over 2 percent after reporting a lower second quarter profit. The price of crude oil was moving lower Wednesday morning as traders await cues from the official inventories data from the EIA. Analysts expect crude oil inventories to shed 1.4 million barrels, while gasoline stocks are seen adding 700,000 barrels last week. Crude for August was down $0.25 to $88.97 a barrel The price of gold moved down as the dollar was steady after the Federal Reserve failed to hint on further monetary easing measures. Gold for August lost $16.20 to $1,573.30 an ounce. In corporate news from Canada, base metals miner First Quantum Minerals Ltd. said that it has temporarily suspended normal operations at its Guelb Moghrein copper-gold mine in Mauritania due to illegal strike action by some unionized employees. Broadcasting and wireless communications company Aastra Technologies reported a lower second quarter profit of C$1.92 million or C$0.15 per share compared to C$6.09 million or C$0.43 per share last year. Analysts were expecting the company to report earnings of C$0.52 per share for the quarter. Oil and gas firm Crescent Point Energy Corp. announced the acquisition of 21.67 million common share units of Alston Energy Inc. at an effective issue price of C$0.15 per unit. European Market Report FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts European Stocks Rise As Focus Shifts To Earnings European stocks rose on Wednesday despite the disappointment over Fed Chairman Ben Bernanke's testimony before Congress overnight. Investors shifted focus to earnings and seemed to believe that the Fed will move aggressively, if situation warrants. It remains to be seen if Bernanke offers any clues on the likelihood of further quantitative easing during the testimony before the House Financial Services Committee tonight. The Euro Stoxx 50 index of eurozone bluechip stocks is rising 0.24 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is up 0.11 percent. Around Europe, the German DAX, the U.K.'s FTSE 100, Switzerland's SMI and France's CAC 40 are gaining between 0.1 percent and 0.7 percent. Shares of Credit Suisse are rallying over 5 percent after the investment bank unveiled plans to boost its capital in preparation for Basel III regulatory requirements. Dutch semiconductor equipment maker ASML Holding is gaining 1.3 percent in Amsterdam despite posting lower net profit. Alcatel-Lucent is tumbling 3.7 percent, extending Tuesday's steep slide after issuing a profit warning. Swedish network equipment vendor Ericsson is down over 4 percent after reporting weaker than expected quarterly earnings. Shares of Puma are tumbling 4.4 percent in Frankfurt after the German sportlifestyle company said it expects a decline in first half profit due to a slowdown of business particularly in Europe. Accor SA is up 0.7 percent after the French hotel group announced a decline in revenues for the second quarter, hurt mainly by changes in scope of consolidation. On a like-for-like basis, the company reported a 3.1 percent rise in revenues. Shares of Nordea Bank AB are rallying nearly 3 percent in Stockholm after the Swedish bank reported a higher profit in its second quarter. Assicurazioni Generali SpA, Italy's largest insurer, is unchanged after it had its financial strength rating downgraded to 'Baa1' from 'A1' by Moody's Investors Service. BHP Billiton is gaining 0.8 percent in London after the mining giant reported a 15 percent year-over-year increase in iron ore production for the fourth quarter, and 8 percent growth from the previous third quarter. On the macroeconomic front, Bank of England policymakers raised the size of economic stimulus by GBP 50 billion this month through a split vote as Spencer Dale and Ben Broadbent voted to retain it at GBP 325 billion, the minutes of the July 4 and 5 meeting revealed. All nine of the members voted to hold the interest rate at a record low 0.50 percent and the committee members said they would examine the case for a further reduction in bank rate taking into account the impact of policy initiatives. Separately, according to Bundesbank data, Germany sold 2-year treasury notes at negative yield for the first time today as investors continued their flight to safety. The country raised EUR 4.173 billion from the sale of its June 2014 treasury notes, also known as Schatz. The target set for the auction was EUR 5 billion. Elsewhere, Asian markets finished on a mixed note after the Federal Reserve offered a gloomy view of the economy's prospects and warned of another recession and fewer jobs in 2013. Asia Market Reports Asian Stocks Mixed As Fed Disappoints Asian stocks swung between gains and losses before ending on a mixed note on Wednesday after U.S. Federal Reserve chairman Ben Bernanke gave no hints that further stimulus was on the cards. The Federal Reserve chief offered a gloomy view of the economy's prospects and warned of another recession and fewer jobs in 2013, but resisted demands for additional quantitative easing. Notwithstanding the disappointment, investors still retain some hope that he may give clues to new bond purchases program during his second testimony in front of U.S. lawmakers tonight. Tokyo stocks fell, with short covering in battered export-linked shares helping limit the downside. Canon and Honda Motor ended up about 0.6 percent and 0.3 percent, respectively, while Sony edged up 0.1 percent. Shares of Komatsu lost 2.1 percent on concerns about the Chinese economy after Shanghai shares fell to a three-year low yesterday. The Nikkei average ended down 28 points or 0.32 percent at 8,727, while the broader Topix index slid 0.4 percent, extending declines for the ninth consecutive session. Hokuriku Electric Power plunged 21 percent and Kansai Electric Power tumbled 6.3 percent after seismologists warned that they may be sitting on active earthquake fault lines. Heavyweight Softbank retreated 3.2 percent on profit taking following recent sharp gains. Retailer Uny plunged almost 10 percent on equity dilution worries. Realtor Mitsui Fudoson rose 2 percent on a Nikkei report that the government could remove a barrier to foreign property ownership by Japan's REITs. China's Shanghai Composite index rose 0.4 percent on expectations that the government will announce fresh policies to support growth after the upcoming central economic committee meeting, which is expected to take place in late July. Hong Kong's Hang Seng index fell 1.1 percent, dragged down by mainland property developers, as data from private companies showing a pickup in the housing market in June lessened the prospects of any policy easing. Australian stocks snapped a three-day rally, as resource stocks came under selling pressure despite a positive overnight lead from Wall Street. The benchmark S&P/ASX 200 slid 0.42 percent, while broader All Ordinaries index eased 0.45 percent. BHP Billiton lost 2 percent after the release of its quarterly production report, which showed a 15 percent rise in iron ore output in the June quarter. Rio Tinto, smaller rival Fortescue and gold miner Newcrest fell 3-4 percent. In the banking sector, Commonwealth rose 0.6 percent after it put a pay freeze on the base salaries of around 400 its senior staff in a bid to cut costs and prevent job losses. Westpac and ANZ rose about 0.4 percent each, while NAB edged up 0.3 percent. uarie Group retreated 2.4 percent. Retailer Wesfarmer edged up 0.1 percent after warning of wage pressure. Ariline Qantas ended flat after officially launching its online accommodation booking website, Hooroo. South Korea's Kospi average fell 1.5 percent, with tech stocks pacing the declines, after chipmaker Intel reduced its 2012 revenue growth forecast to about 3-5 percent from a prior forecast of 'high single-digit growth'. Shares of SK Hynix plunged 4.9 percent. Banks also lost ground, with Woori Finance Holdings and Hana Financial losing about 3 percent each after the nation's antitrust watchdog launched a probe into the country's top four commercial banks on suspicions that lenders colluded to rig rates on certificate of deposits. Economy-sensitive shipbuilders such as Daewoo Shipbuilding and Samsung Heavy Industries slumped about 5 percent each on disappointment over the lack of a clear signal from the Fed to launch another round of bond purchases. New Zealand shares rose modestly, led by Telecom, Chorus and Sky City after Bernanke's address to Congress yesterday gave mixed signals about efforts to support the sluggish U.S. growth. The benchmark NZX-50 index rose 0.15 percent. Telecom, the biggest company on the exchange, gained 2.2 percent, its demerged infrastructure arm Chorus added a percent and Sky City Entertainment Group ended 0.9 percent higher. Chemicals and resins manufacturer Nuplex Industries rose 2.4 percent on expectations it would benefit from the government procurement program in the rebuild of Christchurch. Fletcher Building, the nation's largest construction firm, fell 0.7 percent amid criticism earlier this week from the Council of Trade Unions on the Christchurch rebuilding process. Xero fell 2.6 percent and Diligent Board Member Services lost a percent, as investors took some profits off the table following the previous session's sharp gains. Elsewhere, India's benchmark Sensex was up 0.4 percent and Malaysia's KLSE Composite rose 0.3 percent, while Indonesia's Jakarta Composite index was down 0.2 percent, Singapore's Straits Times index was losing 0.1 percent and the Taiwan Weighted average fell 1.1 percent. Commodities USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts Crude Edges Down Ahead Of Official Inventories Data The price of crude oil was moving lower Wednesday morning as traders await cues from the official inventories data from the EIA. Light Sweet Crude Oil (WTI) futures for August delivery, slipped $0.40 to $88.82 a barrel. Yesterday, oil ended higher even after the Federal Reserve Chairman Ben Bernanke failed to make any clear hint at further quantitative easing investors expected. Tuesday after the market hours, the API said crude oil inventories dipped 2 million barrels and gasoline stocks eased 116,000 barrels in the weekended July 13. This morning, the U.S. dollar was hovering near its 2-year high versus the euro, while ticking higher against sterling. The buck was moving lower versus the yen and moving higher against the Swiss franc. In economic news from the euro zone, Bank of England policymakers raised the size of economic stimulus by GBP 50 billion this month through a split vote as two members opposed the move, the minutes of the meeting revealed today. Members also plan to examine possibilities of cutting the benchmark interest rate below 0.50 percent, after assessing the impact of new measures. Meanwhile, British unemployment rate declined in the quarter to May, the latest figures from the Office for National Statistics showed. The ILO unemployment rate fell to 8.1 percent in March-May from a revised 8.3 percent in the three months through February. Economists expected the rate to remain unchanged from the February quarter's original figure of 8.2 percent. Traders will look to the report on housing starts and building permits from the U.S. Commerce Department, due out at 8:30 am ET. Economists estimate housing starts for June to come in at 745,000, while building permits are expected to have slipped to 775,000. Today during trading hours, the EIA will release its U.S. crude oil inventories report for the weekended July 13. Analysts expect crude oil inventories to shed 1.4 million barrels, while gasoline stocks are seen adding 700,000 barrels last week.