Stocks Continue To Show A Lack Of Direction
8/28/2012 11:06 AM ET
After showing a lack of direction throughout the previous session,
stocks continue to turn in a lackluster performance during trading on
Tuesday. The major averages have spent the morning bouncing back and
forth across the unchanged line.
The choppy trading on Wall Street comes as traders remain reluctant to make any significant moves ahead of remarks by Federal Reserve Chairman Ben Bernanke.
Bernanke
is scheduled to speak at the Kansas City Federal Reserve's Jackson Hole
symposium on Friday, with many traders expecting the Fed chief to
address the possibility of further quantitative easing.
Meanwhile,
European Central Bank Mario Draghi has revealed that he will not attend
the symposium due to what a spokesman called a "heavy workload" for the
next few days.
While most of the major sectors are showing only modest moves, airline stocks have come under pressure on the day. The NYSE Arca Airline Index is down by 1 percent amid notable losses by Hawaiian Airlines parent Hawaiian Holdings and Delta .
Steel and oil service stocks have also moved to the downside, while moderate strength is visible among tobacco and gold stocks.
The major averages are currently just below the unchanged line, showing losses of less than a tenth of a percent. The Dow is down 1.24 points at 13,123.43, the Nasdaq is down 1.51 points at 3,071.68 and the S&P 500 is down 0.55 points at 1,409.89.
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Financials Support TSX Tuesday Morning - Canadian Commentary
8/28/2012 11:25 AM ET
Supported by strength in financial plays, Canadian stocks were hovering
just above the unchanged line Tuesday morning. However, traders were
cautious ahead of a key meeting of central bankers at the weekend that
could give indications on the course of U.S. monetary policy.
However,
European Central Bank President Mario Draghi will not attend the annual
Jackson Hole meeting of central bankers at the end of this week due to a
heavy workload, as the ECB gears up for its key meeting early next
month.
The S&P/TSX Composite Index moved up 19.80 points or 0.16 percent to 12,068.62.
The Financial Index rose over 0.50 percent, with BMO Financial Group
adding about 1 percent after reporting improved third-quarter net
income of C$951 million or C$1.42 per share compared to C$690 million or
C$1.09 per share in the same quarter last year. Adjusted net income was
C$1.013 billion or C$1.49 per share, up from C$157 million or C$1.34 a
year ago. Analysts were expecting the bank to report earnings of C$1.39
per share for the quarter. BMO hiked its dividend by C$0.02 to C$0.72
per shareholders.
National Bank Laurentian Bank , TD Bank and Royal Bank moved up nearly 1 percent each.
On the other hand, Scotiabank
slipped 0.30 percent despite reporting higher third quarter net income
of C$1.95 billion or C$1.69 per share compared to C$1.21 billion or
C$1.10 in the same period a year ago. Adjusted earnings per share
increased to C$1.72 from C$1.12 last year and beating consensus
estimates of C$1.19 per share for the quarter. Scotiabank announced a dividend of C$0.57 per share, an increase of 2 cents per share
Gold stocks were trading mixed as bullion was recovering from early trading weaknesses. gold for December eased $1.70 to $1,673.90 an ounce, recovering from an intra-day low $1,659.00.
Detour gold gained close to 2 percent, while Barrick gold was adding nearly 1 percent.
Silver and gold miner Coeur d'Alene Mines Corp. (CDM.TO) rose about 2 percent after announcing that its Palmarejo silver and gold mine
in northern Mexico is operating at full capacity. Operations were
suspended following a fatal accident at the mine late Sunday morning,
August 26, 2012.
The price of Crude oil was moving
higher Tuesday morning as traders await more information on the impact
of Tropical Storm Isaac, which is on the verge of becoming a hurricane
as it rumbled toward the Gulf Coast. Crude for October gained $0.75 to $96.22 a barrel.
In the oil patch, MEG Energy was down 2 percent.
8/28/2012 11:25 AM ET
Fertilizer markers Agrium Inc. (AGU.TO) and Potash Corp. (POT.TO) were down about 1 percent each
Base-metals miner Lundin Mining Corp. shed over 1 percent after announcing that production at the wholly owned Aguablanca nickel/copper mine in Spain has restarted ahead of the previously announced schedule.
In
economic news from the U.S., a report released by Standard & Poor's
on Tuesday showed that the S&P/Case-Shiller 20-City Composite Home
Price Index rose by 0.5 percent in June compared to the same month a
year ago. Economists had been expecting the index to edge down by about
0.3 percent year-over-year. S&P also said the 20-City Composite Home
Price Index increased by a seasonally adjusted 0.9 percent on a monthly
basis in June compared to a 1.0 percent increase in May.
From the euro zone,
German consumer confidence is set to remain unchanged in September,
contrary to expectations for a decline, a key survey revealed today.
Market research group GfK said its consumer confidence index for
September scored 5.9, unchanged from August and belying economists'
expectations for a drop to 5.8.
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European Markets Finished Higher As Investors Turn Optimistic
8/21/2012 12:02 PM ET
The European markets finished in positive territory on Tuesday, after
investor sentiment shifted to hopeful on optimism about action from
policy makers to contain the debt crisis. A successful debt auction by
Spain and reports that China is planning new economic stimulus for the
second half of the year also contributed to the positive mood. Mining
stocks received a boost from the China news and shares of banks turned
in a strong performance.
The People's Bank of China injected CNY
220 billion into the money market through reverse repurchase operations
on Tuesday, reports said. The central bank said it added CNY 150 billion
using seven-day reverse repos at a yield of 3.4 percent and CNY 70
billion via 14-day reverse repos at 3.6 percent.
Spain saw a steep
decline in borrowing costs at an auction on Tuesday amid speculation
that the European Central Bank would resume its purchase of peripheral
bonds. Further, markets are also hopeful that a series of bilateral
meetings between key Eurozone leaders may produce a lasting solution to
the region's prolonged sovereign debt crisis.
The Spanish Treasury managed to sell slightly more debt than it had planned in Tuesday's auction. The agency raised a total EUR 4.51 billion from the sale of 12 and 18 - month bills against a target of EUR 3.5 billion - EUR 4.5 billion.
The
yield on the one-year debt declined to 3.070 percent from 3.918 percent
in the previous sale on July 17. The 18-month paper was placed to yield
3.335 percent, which was less than the 4.242 percent fetched in July.
The euro Stoxx 50 index of eurozone bluechip stocks increased by 1.00 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.32 percent.
The DAX of Germany climbed by 0.79 percent and the CAC 40 of France finished up by 0.94 percent. The FTSE 100 of the U.K. gained 0.57 percent and the SMI of Switzerland rose by 0.19 percent.
In Frankfurt, Merck fell by 0.55 percent. DZ Bank downgraded the stock to "Hold" from "Buy."
Commerzbank increased by 4.04 percent and Deutsche Bank gained 5.39 percent.
Singulus Technologies finished up by 0.90 percent, after DZ Bank reduced its rating on the stock.
In Paris, Societe Generale finished higher by 3.85 percent. BNP Paribas climbed by 2.44 percent and Credit Agricole added 4.97 percent.
In London, mining stocks climbed on hopes of stimulus measures in China. Anglo American rose by 3.58 percent and Antofagasta climbed by 3.26 percent. Kazakhmys gained 2.58 percent and Vedanta Resources added 4.49 percent. BHP Billiton increased by 1.51 percent and Rio Tinto advanced by 2.08 percent.
8/21/2012 12:02 PM ET
Glencore International reported a decline in its first-half profit, reflecting a fall in commodity prices. The stock finished higher by 1.77 percent.
Barclays
gained 3.22 percent. The lender is in talks with its subsidiary Absa
Group Ltd., to combine majority of their African operations.
Royal Bank of Scotland rose by 2.50 percent and Lloyds Banking Group gained 1.09 percent.
Homebuilder
Persimmon decreased by 1.13 percent. The company reported a higher
profit for the first half, as revenues benefited from increase in legal
completions and higher selling prices.
Julius Baer rose by 3.12
percent in Zurich. The lender said Monday that it would limit its
proposed rights offering to 500 million Swiss francs, from the previous
plan of 750 million francs, as part of its capital raise to fund its
acquisition of Bank of America Corp.'s non-US wealth management unit.
Germany's
leading index declined for the third consecutive month in June, data
from a survey by the Conference Board showed Tuesday. The leading
economic index decreased by 0.8 percent on a monthly basis to 103.2 in
June, marking the third consecutive decline.
The U.K. public
sector net borrowing, excluding the temporary effects of financial
interventions, (PSNB ex) increased in July, data from the Office for
National Statistics showed Tuesday. Net borrowing was GBP 0.6 billion in
July, which was GBP 3.4 billion higher than in July last year when PSNB
was -GBP 2.8 billion. |
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Asian Markets Mostly Trade Marginally Lower
8/27/2012 11:41 PM ET
Asian stock markets are mostly trading marginally lower on Tuesday
after positive starts and are range bound as investors remain cautious
amid hopes of fresh stimulus measures by the U.S. Federal Reserve and
the European Central Bank. The overnight mixed close on Wall Street did not provide any cue for the markets.
Stocks may meander around until Friday's Jackson Hole address by the chiefs of major global central banks.
Traders
already are looking ahead to remarks by Federal Reserve Chairman Ben
Bernanke at the Kansas City Federal Reserve's annual Jackson Hole
symposium, along with European Central Bank President Mario Draghi and
International Monetary Fund President Christine Lagarde.
Bernanke
had indicated in a letter on Friday to Rep. Darrell Issa, R-Calif. that
there is "scope for further action by the Federal Reserve to ease
financial conditions and strengthen the recovery."
The Australian
market is trading flat amid cautious trading by investors ahead of hopes
of fresh economic measures in the world market.
In early morning trades, the benchmark S&P/ASX 200 index,
which declined to around 4,340, is currently trading at 4,342.6, down
1.1 points or 0.0 percent from its previous close. The broader All Ordinaries index is down 1.5 points or 0.0 percent at 4,371.4.
Mining
and energy stocks are the prominent losers in the Australian market,
while consumer discretionary, financial and industrial stocks are
trading marginally higher.
In the mining space, BHP Billiton (BHP, BBL) is losing 0.7 percent, Rio Tinto (RIO, RIO.L) is falling 1.4 percent and Fortescue is lower by 1.1 percent.
Shares in Origin Energy are
down following the death of two workers yesterday on an offshore
drilling rig, the Stena Clyde, which is operated by Stena Offshore of
Scotland.
Media and earthmoving machinery company Seven Group
Holdings has more than doubled its full-year profit to $165.9 million
from $70.4 million last year. Revenues rose 41 percent to $4.46 billion
from the previous year. Seven is up more than 5 percent.
Shares in
Virgin Australia have fallen more than 4 percent in early deals after
the country's second largest airline returned to profit as revenue
jumped nearly five-fold, boosted by its market share growth in the
lucrative business travel market.
In economic news, the total
number of new home sales in Australia was down 5.6 percent on month in
July, the Housing Industry Association said on Tuesday, falling for the
first time in four months. Sales were up 2.8 percent on month in June.
In the currency market, the Australian dollar fell
to a one-month low against the US Dollar. In early trades, the local
unit was trading at US$1.0358, down from US$1.0385 on Friday.
8/27/2012 11:41 PM ET
After a moderately positive start, the Japanese market is trading marginally lower as the dollar weakened against the yen and
concerns over China's economic growth. The market is meandering due to
the lack of major trading cues from the domestic or international
markets. The benchmark Nikkei 225 Index, which opened higher by 0.58 percent, is currently trading at 9,060.07, down 25.32 points or 0.28 percent.
Electricity
and gas, mining and nonferrous metals sectors were the major decliners,
while consumer finance, foods, and fishery and forestry sectors led the
gainers.
Sharp Corp. continued to gain for the sixth straight day
as talks on a tie-up with Taiwan's Hon Hai Precision Industry Co. is
expected to make progress. Sharp is up 6.5 percent.
In the currency market, the U.S. dollar is trading in the upper 78 yen range on Tuesday. In late morning trades, the dollar was quoted in a range of 78.53-78.56 yen, up 0.13 yen from Monday's close of 78.66-78.67 yen in Tokyo.
Among
other markets in the Asia, Hong Kong, New Zealand, Singapore, South
Korea, and Taiwan are trading marginally lower, while Shanghai,
Malaysia, New Zealand and Indonesia are trading marginally higher.
Among
other markets in the Asia, Shanghai, Malaysia, Hong Kong, South Korea,
and Indonesia are trading marginally lower and Taiwan is down a percent,
while New Zealand and Singapore are trading marginally higher.
On
Wall Street, stocks showed a lack of direction throughout the trading
day on Monday, with traders reluctant to make significant moves amid
lack of major U.S. economic data. The choppy trading on Wall Street came as traders looked ahead to remarks by Federal Reserve Chairman Ben Bernanke.
The major averages eventually ended the session mixed, with the Nasdaq posting a modest gain. While the Nasdaq inched up 3.40 points or 0.1 percent to 3,073.19, the Dow fell 33.30 points or 0.3 percent to 13,124.67 and the S&P 500 edged down 0.69 points or 0.1 percent at 1,410.44.
In the European market, the major averages moved notably higher over the course of the trading day. The French CAC 40 Index advanced by 0.9 percent, while the German DAX Index surged up by 1.1 percent. The U.K. market was closed for a public holiday.
The Global gold Index dropped 1.47 percent, although gold futures for December delivery gained $2.70 to close at $1,675.60 an ounce Monday on the New York Mercantile Exchange.
U.S. Crude oil ended
lower Monday, as worries over supply disruptions eased amid speculation
that Tropical Storm Isaac will have little impact on production in the
oil-rich U.S. Gulf of Mexico region.
8/27/2012 11:41 PM ET
Crude for October delivery edged down $0.68 or 0.07 percent to close at $95.47 a barrel on the New York Mercantile Exchange. |
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Dollar Little Changed As Investors Await Bernanke Speech
8/27/2012 1:09 PM ET
The dollar is
little changed in comparison to its major competitors at the start of
the new trading week. Investors have been cautious as they await some
upcoming speeches at the end of the week from some of the top central
bankers.
Federal Reserve Chairman Ben Bernanke will give a speech
at the Kansas City Federal Reserve Bank's annual symposium in Jackson
Hole, Wyoming on August 31. Investors will be watching for clues about
what the Fed plans to do to bolster growth in the world's largest
economy. Hopes for a new round of stimulus from the Fed have increased,
boosted by news of a letter Ben Bernanke sent to Rep. Darrell Issa of
California, defending the Fed's actions to support the economy. European
Central Bank President Mario Draghi is also expected to give a speech
on Saturday.
Bundesbank President Jens Weidmann has strongly
criticized the proposed new round of bond purchases by the European
Central Bank, saying that central bank financing could be "addictive
like a drug." In an interview to German magazine Der Spiegel, Weidmann
said "for me, such a policy is too close to financing state debt by
printing money."
A report on Greece's progress on economic
reforms by the European Commission, European Central Bank and the
International Monetary Fund or the troika will be delayed until early
October, Germany's Rheinische Post reported Monday.
Elsewhere,
European Commission spokesman Simon O'Connor reportedly said that the
troika will return to Athens in early September to begin the concluding
phase of the review programme. It will take a couple of weeks, he said.
Meanwhile,
in an interview to ARD public television on Sunday, German Chancellor
Angela Merkel said "we all should weigh our words," while commenting on
the euro area debt crisis and the situation in Greece. Europe is
in a "very critical stage" with regard to its fight against the crisis,
she said, adding that Europe is not only a monetary union, but a
political community.
When asked about the situation in Greece,
she said Europe is awaiting a report from the troika. "Every day" counts
for Greece to comply with its commitments and there is much more to be
done.
The Greeks must demonstrate the credibility of their fiscal
consolidation program and the commitment to implement the necessary
reforms, French President Francois Hollande said after a meeting with
Greek Prime Minister Antonis Samaras in Paris on Saturday.
While
praising the people of Greece for going through the painful austerity
measures for the past two and half years, Hollande reiterated that
Greece will always remain in Eurozone. He said the European leadership
is awaiting the troika report on Greece to make a decision on further
aid to the country. There are commitments to be reaffirmed on both sides
and the sooner these are done, the better, he added. |
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