|
Stocks Seeing Modest Weakness In Early Trading
Stocks have
moved modestly lower in early trading on Wednesday, adding to the steep
losses posted in the previous session. The major averages have slipped
into negative territory, although selling pressure remains relatively
subdued.
The major averages have recently edged up off their lows for the young session but remain in the red. The Dow is down 42.16 points or 0.3 percent at 13,431.37, the Nasdaq is down 4.08 points or 0.1 percent at 3,060.94 and the S&P 500 is down 2.64 points or 0.2 percent at 1,438.84.
The
early weakness on Wall Street reflects lingering concerns about the
outlook for the global economy following disappointing guidance from
aluminum giant Alcoa (AA).
While Alcoa reported third
quarter results that exceeded analyst estimates, the company also
lowered its forecast for global aluminum demand growth in 2012 to 6
percent from 7 percent.
The release of results from Alcoa is seen
as the start of earnings season, and the lower guidance may lead to
worries about the possibility of disappointing forecasts from other
companies.
Shares of Chevron (CVX) are moving to the
downside after the oil giant said it expects its third quarter earnings
to be substantially lower than in the second quarter.
The company
said it expects upstream earnings to be hurt by foreign exchange losses
and lower liftings and realizations, while timing effects, lower
realized margin and the negative effects of several smaller unrelated
items are expected to drag downstream earnings lower.
Many of the
major sectors are showing only modest moves in early trading, although
considerable weakness has emerged among electronic storage stocks. The NYSE Arca Disk Drive Index has tumbled by 3.1 percent to its lowest intraday level in well over two months.
Airline,
computer hardware, and oil stocks have also come under pressure, while
housing stocks are regaining some ground following recent weakness.
In overseas trading, stock markets
across the Asia-Pacific region moved mostly lower during trading on
Wednesday. Japan's Nikkei 225 Index tumbled by 2 percent, while Hong
Kong's Hang Seng Index edged down by 0.2 percent.
The major European markets have also moved to the downside on the day. While the U.K.'s FTSE 100 Index has dipped by 0.3 percent, the French CAC 40 Index and the German DAX Index have both edged down by 0.1 percent.
In the bond market, treasuries have moved modestly lower after ending the previous session moderately higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.9 basis points at 1.739 percent.
| Canadian Market |
 |
| CADUSD | Oil | Gold | Allbanc |
 |  |  |  |
| Please click on the images to view our interactive charts |
|
|
TSX Poised To Extend Losses At Open
Canadian stocks may
extend losses at open Wednesday as commodities were struggling to move
higher amid gloomy forecasts for world economic growth, with the IMF
trimming its estimates for global economic growth and warning that
mature economies are at risk of recession.
The IMF, in its recent
report, predicted that the world economy will grow 3.3 percent this
year, the slowest since the 2009 recession, and 3.6 percent next year,
compared with July predictions of 3.5 percent in 2012 and 3.9 percent in
2013.
In the commodities market, the price of crude oil
was ticking lower Wednesday morning after witnessing smart gains in the
previous session on supply concerns. Meanwhile, the Organization of the
Petroleum Exporting Countries maintained its 2013 world oil demand
growth forecast at 0.80 mbd and that of its world economic growth
projection at 3.2 percent for 2013. Crude for November shed $0.35 to
$92.04 a barrel.
The price of gold little changed
Wednesday morning amid global growth concerns after the recent warning
from the IMF on world economic growth. Gold for December edged up $1.10
to $1,766.10 an ounce.
In corporate news from Canada, Kinross
Gold Corp. said that Executive Vice-President and Chief Financial
Officer, Paul Barry, would depart in order to pursue other interests.
Energy services company Hyduke Energy Services
said its has recommended its shareholders not to deposit any shares in
response to the unsolicited offer from Do All Industries Ltd for cash
consideration of $0.83 per common share. Yesterday the stock soared 9
percent to C$0.83, matching the offer price.
Sport equipments maker Bauer Performance Sports
posted lower first-quarter net income of C$16.0 million or C$0.45 per
share compared to C$22.6 million or C$0.72 per share in the prior year
quarter.
Computer maker Smart Technologies Inc. announces
the appointment of Neil Gaydon as its President and Chief Executive
Officer, effective October 24, 2012. Gaydon brings over 28 years of
technology experience and leadership, most recently serving as CEO of
Pace plc.
In economic news from the euro zone, Germany's wholesale
price inflation increased in September at the fastest pace since
November 2011, data from Destatis revealed. Wholesale prices rose at a
more than expected pace of 4.2 percent year-on-year in September after
climbing 3.1 percent in August. The annual rate was forecast to reach
3.3 percent.
Meanwhile, France's industrial production
growth accelerated in August, increasing hopes that the second largest
euro zone economy could escape a recession in the third quarter. Data
released by statistical office Insee showed that industrial production
rose by 1.5 percent month-over-month in August, faster than the 0.6
percent gain seen in July. Economists were looking for a 0.3 percent
decline.
| European Market |
| |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
 |  |  |  |
| Please click on the images to view our interactive charts |
|
|
European Stocks Decline As Growth Worries Persist
The European markets
are in negative territory in afternoon trading Wednesday, as global
growth worries continued to impact investor sentiment. The Asian markets
broadly fell, led by Japan, and the U.S. index futures point to a lower
open.
The International Monetary Fund warned that in the absence
of decisive and urgent policy measures, banks in Europe may need to
sell as much as $2.8 trillion to $4.5 trillion worth of assets through
the end of 2013.
In its latest Global Financial Stability Report,
the IMF said the largest burden of credit supply contraction will fall
on the euro area periphery. Faltering market confidence has led to
capital flight from countries on the 'periphery' to the core of the euro
area.
Spanish Prime Minister Mariano Rajoy is due to meet French
President Francois Hollande today, a week after he played down reports
of a potential Spanish bailout.
Chancellor Angela Merkel
has pledged her country's continuing support to Greece amid lingering
concerns about Europe's debt crisis. The German leader, who arrived in
Athens on Tuesday to meet with Greek leaders regarding the ongoing debt
crisis, said Greece had made significant progress in dealing with its
huge debt but that it was a "difficult path."
Meanwhile, the
European Union's proposal of imposing a tax on financial transactions
found more supporters at Tuesday's Ecofin meeting in Luxembourg,
signaling that a decision on the project may come after the EU finance
ministers' November meeting.
In France, industrial production
growth accelerated in August, increasing hopes that the second largest
Eurozone economy could escape a recession in the third quarter. Data
from Insee showed industrial production rose 1.5 percent
month-over-month, faster than the 0.6 percent gain seen in July.
Economists expected a 0.3 percent decline.
The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.51 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.33 percent.
The German DAX is falling 0.28 percent and the French CAC 40 is dropping 0.26 percent. The UK's FTSE 100 is losing 0.39 percent and Switzerland's SMI is sliding 0.30 percent.
In Frankfurt, SAP is
declining 2.2 percent after Barclays cut the stock to ''Equalweight''
from ''Overweight.'' Linde is losing 1.2 percent. Berenberg initiated
the stock with a ''Buy'' rating.
Citigroup raised Volkswagen to
"Buy" from "Neutral." The stock is flat. Daimler and BMW are moderately
lower. Commerzbank is losing 0.1 percent while Deutsche Bank is rising
0.3 percent.
Deutsche Bank raised Man to "Buy" from "Hold." The shares are adding 2 percent.
In Paris, Publicis Groupe is losing 2.6 percent, followed by Cap Gemini, which is down 2.3 percent. Saint-Gobain is falling 1.9 percent. UBS cut the stock to "Neutral" from "Buy." Berenberg initiated Air Liquide with a "Hold'' rating. The stock is down 0.5 percent.
Peugeot
is losing 1.5 percent. Moody's Investors Service downgraded the
carmaker to Ba3 from Ba2, and the outlook is negative. The ratings
agency attributed the action to the challenges facing Peugeot in
restructuring its automotive business and reducing the cash burn.
EADS is up 0.4 percent as deadline approaches for the deal with BAE Systems. BAE is falling around 1 percent in London.
In London, Fresnillo is losing 2.7 percent. Antofagasta is falling 1.6 percent while Anglo American is gaining 1.3 percent.
Avanti Communications is plunging over 15 percent. The satellite operator reported a wider loss for fiscal 2012, despite significant growth in revenues.
Lenders are seeing gains. Barclays, Royal Bank of Scotland and Lloyds Banking are advancing between 1 percent and 3.6 percent.
Fiat is falling 0.3 percent in Milan. Moody's Investors Service
downgraded the corporate family rating and probability of default
rating of Fiat to Ba3 from Ba2, reflecting the decline in demand for
Italian cars this year.
|
| Asia Market |
|
Asian Stocks Fall On Economic Concerns
Asian stocks
fell broadly on Wednesday, weighed down by earnings concerns and global
growth worries after brokerages cut their ratings on Intel shares and
the International Monetary Fund warned of a credit crunch and a
recession, if European policymakers do not fulfill promises to establish
a common bank supervisor and Washington fails to reverse the looming
"fiscal cliff" austerity plan.
Earnings season kicked off in the
U.S., with Alcoa reporting a $143 million third quarter loss on $5.54
billion in sales that exceeded analysts' estimates. However, the company
cut its full year aluminum demand forecast, reflecting slowing Chinese
demand and continued uncertainty over Europe's debt problems.
German chancellor Angela Merkel's
visit to Greece provoked clashes in Athens yesterday as she made her
first visit to the nation since the Eurozone crisis erupted three years
ago. Merkel praised the course of Greek reforms required for recovery,
but said the coalition government led by prime minister Antonis Samaras
still had to push through more key cost-cutting reforms.
Commodities
were narrowly mixed and the euro fell for a third day on concerns over
Greece and Spain. The IMF increased the pressure on European
policymakers to restore sagging confidence in the global financial
system, saying the region's banks may need to shrink assets worth about
$2.8 trillion over two years if pressures were allowed to continue.
Spanish Prime Minister Mariano Rajoy is due to meet French President Francois Hollande today, a week after he played down reports of a potential Spanish bailout.
Japanese shares fell to a two-month low on growing concerns over the global economic outlook. The Nikkei average tumbled almost 2 percent to its lowest closing level since August 3, while the broader Topix index shed 1.5 percent. Heavyweights such as Fast Retailing and Softbank lost 2-3 percent, Toyota Motors
fell 1.9 percent, extending declines for the second consecutive session
on worries over declining sales in China, Honda Motor dropped 1.1
percent and auto parts maker Denso retreated nearly 3 percent, while Nissan added 1.2 percent.
Steel makers Nippon Steel, JFE Holdings and Kobe Steel
fell 2-5 percent after Nomura Securities cut its ratings on the stocks,
citing a decline in steel consumption by Japan's manufacturing sector.
Dainippon Screen Manufacturing rose 1.6 percent on bargain hunting
following the previous session's sell-off, Komatsu added a percent and
Tokyo Electron gained half a percent.
Chinese shares bucked the
regional downward trend to end modestly higher, with sentiment
underpinned by continued hopes for further market-boosting measures from
Beijing. The benchmark Shanghai Composite rose 0.2 percent, while Hong Kong's Hang Seng index edged down 0.1 percent.
Australian
shares retreated from 13-month highs, mirroring losses in U.S. and
European stocks overnight on earnings concerns ahead of the start of the
third-quarter reporting season. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index fell about 0.3 percent each.
Retailers and media stocks
bore the brunt of the selling, while BHP Billiton edged up marginally
after unveiling plans to cut jobs and rein in costs in its iron ore
division. Rio Tinto edged up 0.2 percent after the company said
it would step up cost-cutting measures to cope with the uncertain
near-term outlook. Smaller rival Fortescue Metals Group fell 2.8 percent and gold miner Newcrest lost 1.3 percent.
Among the major banks, Westpac slid 0.7 percent on a brokerage downgrade, NAB lost 0.4 percent, ANZ slipped 0.2 percent and Commonwealth
declined 0.1 percent. Qantas Airways soared 3.5 percent on speculation
that the company might demerge its frequent flyer business. Oil &
gas firm Woodside Petroleum rose 1.6 percent after crude prices soared on Tuesday on renewed concerns about Middle East tensions.
Seoul stocks tumbled on foreign fund selling amid nagging concerns about the global economy. The benchmark Kospi average
fell 1.6 percent, with tech shares coming under significant selling
pressure after technology stocks led the declines in the U.S. overnight
following brokerage downgrades of Intel and other major companies. Samsung Electronics, the world's biggest memory-chip maker, tumbled 3.4 percent, its biggest single-day loss since August.
NEW Zealand
shares fell for a second consecutive session, mirroring losses in
regional stocks on continued worries about the strength of China's
economy. The benchmark NZX-50 index slid half a percent, with steel products manufacturer Steel & Tube falling 8.3 percent after Australian company Arrium sold its 50.3 percent shareholding in the company at a 15 percent discount to Tuesday's closing price.
Industrial rubber products supplier Skellerup Holdings tumbled 3.4 percent on going ex-dividend, fast food operator Restaurant Brands lost 2.1 percent, carpet maker Cavalier shed 2.1 percent and clothing retailer Hallenstein Glassons declined 1.8 percent. Utility Contact Energy
led the gainers, rising 1.7 percent after The Electricity Authority set
out a new pricing regime for the national grid reflecting its benefit
to generators and consumers. Australian food ingredient maker Goodman
Fielder rose 1.5 percent and children's clothing chain Pumpkin Patch
added 0.8 percent.
Elsewhere, India's benchmark Sensex was down 0.9 percent, Indonesia's Jakarta Composite index was little changed, Malaysia's KLSE Composite slipped 0.2 percent, Singapore's Straits Times index lost a little over a percent and the Taiwan Weighted average eased 0.3 percent.
|
| Commodities |
| |
| USDCAD | USDEUR | USDGBP | USDJPY |
 |  |  |  |
| Please click on the images to view our interactive charts |
|
|
Crude Steady Above $92
The price of crude oil was ticking lower Wednesday morning after witnessing smart gains in the previous session on supply concerns.
Light Sweet Crude Oil
(WTI) futures for November delivery, slipped $0.26 to $92.10 a barrel.
Yesterday, oil rebounded from a 2-month low mostly on bargain hunting
and renewed supply concerns after news that the ongoing unrest in Syria
could spread to adjoining areas, with Turkey keyed up after mortar
strikes on its territory. There were also news reports of Nato plans to
protect Turkey's border with Syria following increased tensions between
the two countries.
The Organization of the Petroleum Exporting Countries (OPEC) maintained its world oil demand growth projections at 0.8 mbd for 2013, in line with the growth for the current year.
The price of gold was little changed Wednesday morning amid global growth concerns after the recent warning from the IMF on world economic growth.
Gold for
December delivery, the most actively traded contract, eased $0.40 to
$1,764.60 an ounce. Yesterday, gold extended losses for a third session
amid global growth concerns and an uncertain outcome of the euro zone
finance ministers meeting over Greece and Spain. Prices were under
pressure after the International Monetary Fund cut its projection of
world economic growth and Greece was granted just 10 days to fulfill all
bailout funding conditions for the next tranche of aid. The dollar
continued to strengthen impressively against some major currencies,
while the euro continued to slide.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at a record high of 1,340.52 tons.
This
morning, the U.S. dollar continued to recover from a two-week low
versus the euro and advancing to a monthly high against sterling. The
buck was trading flat versus the Swiss franc and the yen.
In economic news from the euro zone, Germany's wholesale
price inflation increased in September at the fastest pace since
November 2011, data from Destatis revealed. Wholesale prices rose at a
more than expected pace of 4.2 percent year-on-year in September after
climbing 3.1 percent in August. The annual rate was forecast to reach
3.3 percent.
Meanwhile, France's industrial production
growth accelerated in August, increasing hopes that the second largest
euro zone economy could escape a recession in the third quarter. Data
released by statistical office Insee showed that industrial production
rose by 1.5 percent month-over-month in August, faster than the 0.6
percent gain seen in July. Economists were looking for a 0.3 percent
decline.
Traders will look to the the wholesale
inventories report from the Commerce Department, due out at 10 a.m. ET.
Economists expect wholesale inventories at the end of August to show a
0.4 percent increase compared to a 0.7 percent increase in July
Today after the market hours, the API will release its crude oil inventories report from the weekended October 05.
|
|
|
No comments:
Post a Comment