ADVFN III World Daily Markets Bulletin -October 8th, 2012-.

ADVFN III	World Daily Markets Bulletin
Daily world financial news

Monday, 08 October 2012

US Market

Stocks Mostly Lower Amid Global Economic Worries 10/8/2012 12:04 PM ET With traders expressing concerns about the outlook for the global economy, stocks have moved mostly lower during trading on Monday. The major averages have slid firmly into negative territory, giving back some ground after moving higher last week. The major averages have moved roughly sideways in recent trading, lingering near their worst levels of the day. The Dow is down 38.02 points or 0.3 percent at 13,572.13, the Nasdaq is down 25.45 points or 0.8 percent at 3,110.74 and the S&P 500 is down 6.97 points or 0.5 percent at 1,453.96. The weakness on Wall Street is partly due to negative sentiment generated by news that the World Bank cut its growth outlook for the East Asia region. The World Bank said growth in developing economies in East Asia is expected to slow to 7.2 percent this year from 8.3 percent in 2011. The forecast is weaker than the bank's May projection of 7.6 percent growth. East Asian growth is seen recovering to 7.6 percent in 2013, backed by continued strong domestic demand and an uptick in global trade growth. However, the estimate is lower than an earlier prediction of 8 percent growth. Traders are also keeping an eye on developments in Europe, where European finance ministers are holding a meeting to discuss the region's debt crisis. Peter Boockvar, managing director at Miller Tabak, said, "Ahead of another European Finance Minister coffee talk today, eyes are on the pressure the Spanish government will likely get to stop playing games on the day the Europeans are supposed to roll out their new bailout toy, the ESM." "Greece will be the other story as it seems they will get further leeway from their sugar daddies who will never get paid back all of what's owed to them but for now will pretend to," he added. Nonetheless, trading activity has remained relatively subdued, with many traders away from their desks due to the Columbus Day holiday. Sector News Housing stocks have moved notably lower over the course of the trading day, dragging the Philadelphia Housing Sector Index down by 1.6 percent. Hovnanian and PulteGroup (PHM) are turning in two of the sector's worst performances. Significant weakness is also visible among semiconductor stocks, as reflected by the 1.1 percent loss being posted by the Philadelphia Semiconductor Index. Power Integrations (POWI) and STMicroelectronics (STM) are posting notable losses. Biotechnology, gold, and telecom stocks have also moved to the downside on the day, although selling pressure has been relatively subdued. Other Markets 10/8/2012 12:04 PM ET In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday, with the Japanese markets closed for a public holiday. Hong Kong's Hang Seng Index fell 0.9 percent, while Australia's All Ordinaries Index slipped 0.3 percent. The major European markets also moved to the downside on the day. While the U.K.'s FTSE 100 Index dropped 0.5 percent, the German DAX Index and the French CAC 40 Index slid 1.4 percent and 1.5 percent, respectively. Meanwhile, the bond markets are closed for the day due to the Columbus Day holiday. Canadian Market CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts Canadian stocks ended lower Friday, weighed down by concerns over global economic growth slowdown with commodity prices taking a hit. The decline was led mostly by resource stocks, notwithstanding some upbeat macroeconomic data from both sides of the border. The critical non-farm payroll data from the U.S. showed an unexpected increase in jobs with the employment rate for September dropping below 8 percent for the first time since January 2009. Meanwhile, Canada reported job additions for a second consecutive month, although unemployment rate increased marginally. The S&P/TSX Composite Index closed Friday at 12,418.99, down 28.69 points or 0.23 percent. The index touched an intraday high of 12,480.83 and a low of 12,388.76. The Energy Index shed 0.75 percent, with U.S. crude oil futures for November delivery dropping $1.83 or 2.0 percent to close at $89.88 a barrel Friday on the NYMEX. Among energy stocks, Suncor Energy Inc. (SU.TO) shed 0.45 percent, Talisman Energy Inc. (TLM.TO) shed 2.27 percent, and Encana Corp. (ECA.TO) shed 2.61 percent. Pacific Rubiales Energy Corp. (PRE.TO) gained 2.14 percent, while Nexen Inc. (NXY.TO) shed 0.08 percent. Canadian Natural Resources Limited (CNQ.TO) surrendered 1.56 percent. The Diversified Metals & Mining Index slipped 0.07 percent, with First Quantum Minerals Ltd. (FM.TO) down 1.38 percent and Teck Resources Limited (TCK.B.TO) moved up 0.60 percent. Inmet Mining Corp. (IMN.TO) lost 0.53 percent, while Lundin Mining Corp. (LUN.TO) gained 0.60 percent. The Global Gold Index slipped 0.96 percent, with gold futures for December delivery shedding $15.70 or 0.9 percent to close at $1,780.80 an ounce Friday on the Nymex. The Capped Materials Index slipped 0.68 percent, with fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) edging down 0.02 percent. Among gold stocks, Goldcorp Inc. (G.TO) was down 0.20 percent, Yamana Gold Inc. (YRI.TO) slipped 3.13 percent, and Eldorado Gold Corp. (ELD.TO) lost 2.21 percent. Kinross Gold (K.TO) lost 2.67 percent, while B2Gold Corp. (BTO.TO) slipped 0.49 percent. Barrick Gold Corp. (ABX.TO) gave up 0.56 percent. The Financial Index moved up 0.10 percent, with Royal Bank of Canada (RY.TO) down 0.17 percent, Manulife Financial Corp. (MFC.TO) was up 1.07 percent, Bank of Nova Scotia (BNS.TO) surrendered 0.20 percent, and Toronto-Dominion Bank (TD.TO) was up 0.17 percent. Bank of Montreal (BMO.TO) edged up 0.03 percent. Transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) gained 0.52 percent. The Information Technology Index was down 0.38 percent with smartphone maker Research In Motion Ltd. (RIM.TO) edging down 0.12 percent. Meanwhile, Zimbabwe-focused junior gold company New Dawn Mining Corp. (ND.TO) surged 12.90 percent after announcing court approval to acquire all outstanding minority shares of its Falcon Gold subsidiary in Zimbabwe, in which New Dawn owns or controls approximately 85 percent of the equity. In economic news Statistics Canada said the economy created 52,000 jobs in September mainly in full-time work. However, the unemployment rate rose 0.1 percentage points to 7.4 percent as more people participated in the labor market. Economists expected only 10,000 jobs creations in September. Separately, the agency said municipalities issued building permits worth $7.3 billion in August, a 7.9 percent increase, following a 2.8 percent decline in July. The increase in August originated from higher construction intentions in the non-residential sector, which more than offset a decrease in the residential sector. Meanwhile, the value of permits in the non-residential sector increased 25.2 percent from July to $3.2 billion, the highest level in almost four years. European Market FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts European Markets Finish Mostly Lower Due To Concerns Over Greece & Spain The European markets have largely ended Monday's session with losses. Concerns over the debt situations in both Spain and Greece weighed on investors, causing them to exit riskier investments. A meeting by European finance ministers to discuss the region's debt crisis was also in focus. Shares of banks were particularly hard hit at the start of the new trading week. With the Greek-troika talks set to drag on further and Spain reluctant to request a bailout, the Eurogroup meeting on Monday is set to conclude without any major announcements even as European leaders continued to stress on the 'urgency' to contain the crisis. The Eurogroup, an informal gathering of the Finance Ministers of Eurozone, is set to meet in Luxembourg on October 8 before the full meeting of the ECOFIN Council on the next day. Hopes that Spain will officially ask for a financial rescue at this meeting have faded with Prime Minister Mariyano Rajoy denying the bailout rumors. He has signaled that the decision will not come so soon. Greece is racing against time to secure a deal with the troika, comprising the International Monetary Fund, the European Union and the European Central Bank, on the 13.5 billion euros of austerity measures. Meanwhile, EU Economic and Monetary Affairs Commissioner Olli Rehn said on Saturday that the talks between Greece and its creditors have been progressing well and he expects the Eurogroup to make an upbeat statement on the situation at the meeting. Greek labor unions have called for a strike and massive protests in Athens during the visit of German Chancellor Angela Merkel on Tuesday. The rally, to be held by the country's two main labor unions for private and public sector workers, will take place on Tuesday afternoon. Merkel's visit comes at a time when the discussions between the troika and the Greek government looks to drag on further amid disagreement over the EUR 13.5 billion of austerity measures. The European authorities are studying the possibility of a single budget for Eurozone countries, an idea which reportedly has gained support of major euro nations including Germany, Financial Times Deutschland reported Monday. Germany sold its 6-month treasury bills known as Bubills at negative yield on Monday as safe-haven demand recovered amid the lingering uncertainty over a Spanish bailout request, auction data from Bundesbank revealed. The country raised EUR 2.420 billion from the sale of its April 2013 treasury discount paper against a target of EUR 4 billion. The yield on the short-term debt was -0.0218 percent compared with -0.0147 percent in the previous sale on September 10. The euro Stoxx 50 index of eurozone bluechip stocks declined by 1.31 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.72 percent. The DAX of Germany fell by 1.44 percent and the CAC 40 of France decreased by 1.46 percent. The SMI of Switzerland dropped by 0.29 percent, but the FTSE 100 of the U.K. gained 0.26 percent. In Frankfurt, Metro declined by 2.80 percent. Exane BNP downgraded its rating on the stock to "Underperform" from "Outperform." Commerzbank dropped by 2.89 percent and Deutsche Bank finished down by 2.25 percent. Axel Springer fell by 4.21 percent, after HSBC lowered its rating on the stock. In Paris, Air France-KLM Group fell by 0.87 percent. The airline is partnering with UAE's Etihad Airways and Air Berlin to cover more destinations through mutual code-share agreements. Shares of Air Berlin advanced by 0.38 percent, in Frankfurt. Societe Generale decreased by 2.55 percent, Credit Agricole lost 1.92 percent and BNP Paribas fell by 1.84 percent. In London, Imperial Tobacco fell by 2.36 percent. Nomura downgraded its rating on the stock to "Reduce" from "Neutral." British American Tobacco also declined by 0.66 percent. Barclays dropped by 2.41 percent and Royal Bank of Scotland fell by 2.09 percent. Lloyds Banking Group decreased by 2.04 percent and HSBC lost 0.67 percent. Cookson Group sank by 12.36 percent, after the materials science company said its full-year performance as a whole is now expected to be materially below the board's previous expectations. Specialist recruitment consultancy Michael Page expects full year operating profit to be slightly below current analyst expectations, owing to challenging conditions. The stock closed lower by 0.36 percent. Investor confidence in Eurozone improved for a second consecutive month in October, but remained below economists' forecasts, data released by the think-tank Sentix showed Monday. The Sentix Index rose to -22.2 in October from -23.2 in September. Economists had forecast an improvement in the reading to -20.9. Germany's industrial production decreased at a slower-than-expected pace in August due to a marked reduction in construction activity, indicating that the export-dependent economy's resilience against the fallout from the Eurozone debt crisis is becoming weaker, latest data showed. Industrial production, on a seasonally and working-day adjusted basis, dropped 0.5 percent sequentially in August, after growing a revised 1.2 percent in the previous month, the Economics Ministry said Monday. Economists had forecast a slightly faster decline of 0.6 percent in August, following July's originally recorded 1.3 percent gain. Germany's exports grew unexpectedly in August as declining shipments to euro nations were offset by higher demand from other countries, which further lifted hopes of growth in the largest Eurozone economy, data from Destatis showed Monday. Out-pacing the increase in imports, shipments rose 2.4 percent from a month ago, when it climbed 0.4 percent. At the same time, the month-on-month growth in imports remained unchanged at 0.3 percent. Economists had forecast a 0.6 percent drop in exports, while a 0.2 percent growth in imports. The French economy probably contracted 0.1 percent in the third quarter of 2012, after stagnating in the past three quarters, according to the latest survey published by Bank of France on Monday. This is the central bank's third estimate and is unchanged from the previous forecasts. Asia Market Asian Markets Exhibit Weakness Amid Cautious Trades Asian stock markets are mostly trading lower on Monday with investors treading cautiously and pressing some sales ahead of quarterly earnings reports. A none too positive lead from Wall Street where stocks ended flat on Friday despite upbeat jobs data, is also contributing to the weakness in Asian markets. In the Australian market, energy, mining, information technology and property trusts stocks are trading weak. Healthcare and industrial stocks are edging higher, while financial and consumer discretionary stocks are trading flat. The benchmark S&P/ASX 200 index is down 14.4 points or 0.3 percent at 4,480. The broader All Ordinaries index is trading at 4,500, down 13.8 points or 0.3 percent from its previous close. Among top miners, BHP Billiton (:,:) is down 0.4 percent and Rio Tinto (:,:) is down marginally. In the banking sector, ANZ Bank is up 0.2 percent and Westpac (:) is adding 0.3 percent, while Commonwealth Bank of Australia and National Australia Bank are down marginally. Bendigo & Adelaide Bank is trading modestly higher, while Bank of Queensland is down by over 4 percent. Regis Resources, Beach Energy, Newcrest Mining, Challenger and Mirvac Group are trading lower by 2 to 3 percent. Oil Search, GPT Group, Amcor, Perseus Mining and Westfield Retail Trust are also trading notably lower. Seven West Media is trading higher by over 6 percent. QR National is up more than 5 percent and Atlas Iron is trading 4.6 percent up. Iluka Resources, Downer EDI, Seek, Myer Holdings and Leighton Holdings are also up in positive territory with strong gains. In economic news, job ads in Australia fell for the sixth straight month in September. According to the monthly ANZ Job Ads survey, the number of job advertisement fell 2.8 percent in September. With this, the total number of job advertisements has now fallen for six months and is 10.8 percent below levels seen a year ago. Internet advertising declined 2.8 per cent in September, while newspaper ads fell 3.6 percent in the month. Among other markets in the Asia-Pacific region, Shanghai, Hong Kong, Malaysia, Singapore, South Korea and Taiwan are all trading weak, while Indonesia and New Zealand are trading in positive territory with modest gains. The Japanese market is closed for a holiday for Health Sports Day. Markets across the region had ended mostly higher on Friday. On Wall Street, stocks ended on a mixed note on Friday despite showing some strength early on in the session. A fairly encouraging monthly jobs report aided sentiment and lifted stock prices early on, but traders took some profits towards the end of the session. Commodities USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts