ADVFN III World Daily Markets Bulletin ( December 4th, 2012 ).

	ADVFN III	World Daily Markets Bulletin
	Daily world financial news

US Market

Uncertainty About Fiscal Cliff Leads To Choppy Trading Stocks have shown a lack of direction throughout the trading day on Tuesday after moving mostly lower over the course of the previous session. Continued uncertainty about the looming fiscal cliff is contributing to the choppy trading on Wall Street. The major averages are currently turning in a mixed performance, with the Dow posting a modest gain. While the Dow is up 15.48 points or 0.1 percent at 12,981.08, the Nasdaq is down 9.29 points or 0.3 percent at 2,992.91 and the S&P 500 is down 1.22 points or 0.1 percent at 1,408.42. The lackluster performance comes as traders continue keep a close eye on developments in Washington, where lawmakers are struggling to reach an agreement to avoid the fiscal cliff. Without action by Congress, approximately $600 billion in automatic tax increase and government spending cuts are due to go into effect at the end of the year. Republicans made a 10-year, $2.2 trillion proposal to President Barack Obama on Monday, but the plan was rejected by the White House. The GOP continues to oppose raising tax rates on wealthier Americans and has proposed raising revenues by closing tax loopholes. Democrats have claimed that the Republican plan would put the burden on the middle class. Analysts have suggested that lawmakers will likely to continue to wrangle over how to avoid the fiscal cliff until the days leading up to the end of the year deadline. Among individual stocks, shares of Pep Boys have come under pressure after the auto parts retailer reported a third quarter loss compared to a year ago profit. The company also reported weaker than expected sales. Pep Boys is currently posting a 12.9 percent loss on the news. On the other hand, Big Lots has shown a strong upward move after the discount retailer reported a much narrower than expected third quarter loss. Shares of Big Lots have jumped by 9.6 percent. Sector News Most of the major sectors continue to show only modest moves, contributing to the lack of direction being shown by the broader markets. Despite the choppy trading, notable strength is visible among electronic storage stocks, as reflected by the 1.5 percent gain being posted by the NYSE Arca Disk Drive Index. Earlier in the session, the index reached its best intraday level in almost a month. While oil service, networking, and steel stocks are also seeing some strength on the day, gold, natural gas, and banking stocks are seeing moderate weakness. Other Markets In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. While Japan's Nikkei 225 Index edged down by 0.3 percent, Hong Kong's Hang Seng Index inched up by 0.2 percent. The major European markets also ended the day mixed. The French CAC 40 Index advanced by 0.4 percent, while the U.K.'s FTSE 100 Index and the German DAX Index both closed just below the unchanged line. In the bond market, treasuries are seeing modest strength after ending the previous session in the red. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.3 basis points at 1.605 percent. Canadian Market CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts Commodities Drag TSX Lower Tuesday Morning - Canadian Commentary Canadian stocks were extending losses Tuesday morning amid falling commodities as weak manufacturing data out of the US and a stalemate in budget talks fanned concerns about the health of the world's largest economy and prospects for energy demand. Meanwhile, the Bank of Canada has left its key rates unchanged at 1 percent, as widely expected, and said the economic activity in the third quarter was weak, owing in part to transitory disruptions in the energy sector. Although underlying momentum appears slightly softer than previously anticipated, the pace of economic growth is expected to pick up through 2013, the bank noted. The S&P/TSX Composite Index shed 22.63 points or 0.19 percent to 12,147.11, a day after snapping its three-session winning streak. The price of gold was moving lower Tuesday morning as a stalemate in US budget talks weighed on trader sentiment, notwithstanding record assets in exchange-traded products. Holdings of SPDR gold Trust, the world's largest gold-backed exchange-traded fund, were at a record high of 1,348.83 tons. gold for February surrendered $21.20 to $1,699.90 an ounce. Among gold plays, Agnico-Eagle Mines and Royal gold were down around 2 percent each. The price of Crude oil was leveling off from a two-week high Tuesday morning amid a deadlock in U.S. budget talks. Today after the market hours, the API will release its Crude oil inventories report for the weekended November 30. Crude for January lost $0.87 to $88.22 a barrel In the oil patch, Nexen Inc. , Paramount Resources , Coastal Energy and Trilogy Energy were down around 2 percent each. In the financial space, Canadian Western Bank slipped 1 percent even after reporting a fourth-quarter profit of C$43.0 million or C$0.55 per share, up from C$35.9 million or C$0.47 per share last year. Analysts expected the company to earn C$0.58 per share for the quarter. Meanwhile, Bank of Montreal moved up about 1 percent after posting higher fourth-quarter net income of C$1.06 billion or C$1.59 per share versus C$749 million or C$1.11 per share last year. On an adjusted basis, net income amounted to C$1.125 billion or $1.65 per share. Analysts expected earnings per share of C$1.43 for the quarter. The bank declared a quarterly dividend of C$0.72 per share. Further, the bank announced plans to purchase, for cancellation, up to 15 million of its shares. Technology and training services provider to aircraft and defense customers worldwide CAE Inc.  edged up 0.50 percent after it said it has been awarded a series of military contacts with a net worth of more than C$70 million. Mining company Rio Verde Minerals Development gained over 1 percent after announcing that it has received a non-binding proposal from B&A Mineracao S.A. to acquire the Company. Yesterday, the stock rose 20 percent. Enterprise software solutions provider Enghouse Systems said it has acquired Swedish real-time, IN or Intelligent Network platform, Albatross Scandinavia AB. The stock gained about 5 percent. In economic news, producer price inflation in the euro area slowed less than economists expected in October, data released by statistical office Eurostat showed. Producer price inflation eased to 2.6 percent in October from 2.7 percent each in September and August. Economists has forecast a faster slowdown to 2.5 percent. European Market FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts European Markets Finished Mixed On Fiscal Cliff Concerns The European markets ended Tuesday's session with mixed results. Banks were among the best performing stocks. There was very little news or economic data released today that was capable of swaying the markets in any particular direction. The continuing question of the looming fiscal cliff in the United States remained in focus. Little if any progress has been made in the negotiations, after Republicans put forth a plan that would raise $800 billion in new revenue from taxes. The plan was shot down by the White House, largely because the plan lacked a tax increase on the wealthy. Almost all the countries in Southern Europe will continue to see their economies contracting in 2013, European Central Bank policymaker Ewald Nowotny reportedly said Tuesday. The trend of negative growth rates in these economies will continue into 2013, reports said citing Nowotny's remarks in Vienna. Meanwhile, other economies will continue to record low growth levels, Nowotny said. Eurogroup Chairman Jean-Claude Juncker has called on Cyprus and its creditors to reach an agreement on the terms of the proposed bailout "in a timely manner," while offering to discuss the matter with Eurozone finance ministers as early as next week. "I call on Cyprus and the Troika to conclude on the proposed terms of a programme in order to reach agreement on an adjustment package in a timely manner," he said in a statement issued after the Eurozone finance ministers meeting on Monday. Juncker said the Eurogroup will discuss the capital needs of Cyprus' financial sector and its implications for program financing on December 13. Juncker also confirmed that Spain will receive EUR 39.5 billion from the euro area bailout fund to recapitalize its banks by next week. Earlier on Monday, Spain had forwarded an official request for more aid for its ailing banking sector. The British Chambers of Commerce on Tuesday downgraded U.K. growth forecasts for 2013 and 2014, citing public spending cuts and slow global growth, but upgraded the outlook for this year, which was the first upward revision since March 2011. In its latest economic forecast, the BCC downgraded the growth forecast for 2013 to 1 percent from 1.2 percent, and the 2014 estimate to 1.8 percent from 2.2 percent. For 2012, the BCC projects 0.1 percent contraction, which is better than the 0.4 percent fall previously estimated in September. The Bank of England said the appropriate international authorities should study the bankers' remuneration codes. The interim Financial Policy Committee of the BoE said the bankers' remuneration should reflect the full risks the management was taking. The euro Stoxx 50 index of eurozone bluechip stocks increased by 0.20 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.02 percent. The DAX of Germany declined by 0.00 percent and the FTSE 100 of the U.K. fell by 0.12 percent. The CAC 40 of France gained 0.39 percent and the SMI of Switzerland advanced by 0.21 percent. In Frankfurt, Deutsche Bank gained 1.41 percent and Commerzbank added 1.39 percent. Henkel declined by 2.26 percent, after Credit Suisse downgraded the stock to ''Underperform'' from ''Neutral.'' Morgan Stanley downgraded Fresenius to ''Equalweight'' from ''Overweight.'' The stock fell by 1.44 percent. United Internet sank by 8.37 percent, after Warburg Pincus LLC has reportedly offered to sell its 5.5 percent holding. OC Oerlikon climbed by 1.78 percent. The company lifted its full year outlook and announced sale of units. In Paris, EADS rose by 0.49 percent, extending the gains of the previous session when the Airbus maker said talks are on to change its shareholding structure. Credit Agricole and Societe Generale advanced by 2.03 percent and 2.04 percent, respectively. BNP Paribas added 1.32 percent. Neopost dropped by 5.66 percent. The company cut its full year revenue and operating margin forecast. In London, TUI Travel climbed by 3.38 percent. The tour operator reported a higher profit for fiscal 2012, even as revenues were slightly down for the period. Further, the company said it is well positioned to continue to deliver long-term sustainable growth. Plumbing and heating products distributor Wolseley reported higher trading profit and revenue for the first quarter, amid strong performance in the U.S., even as challenging conditions continued in Continental Europe. The stock finished up by 0.66 percent. Rio Tinto gained 0.34 percent, after Credit Suisse added the stock to its ''European Focus List.'' Tullow Oil decreased by 5.76 percent. The company announced that its Zaedyus-2 appraisal well in French Guiana did not find any commercial hydrocarbons. Royal Bank of Scotland climbed by 1.06 percent, Lloyds Banking Group increased by 0.49 percent and HSBC added 0.05 percent. Producer price inflation in the euro area slowed less than economists expected in October, data released by statistical office Eurostat showed Tuesday. Producer price inflation eased to 2.6 percent in October from 2.7 percent each in September and August. Economists had forecast a faster slowdown to 2.5 percent. Germany's third quarter exports increased from the same quarter last year, data from the Federal Statistical Office showed on Tuesday. Exports rose by 3.6 percent to EUR 275 billion in the third quarter, largely driven by shipments to countries outside the European Union. Shipments to these countries surged 9.9 percent to EUR 122.3 billion and their share of total German exports rose to 44.4 percent. Retail sales in the UK saw only a modest improvement in November as shoppers opted to wait for more bargains in the run-up to Christmas, a survey by the British Retail Consortium revealed Tuesday. Retail sales values rose 0.4 percent on a like-for-like basis in November compared to a year earlier. On a total basis, sales were up 1.8 percent. The UK's construction sector activity contracted unexpectedly in November, a survey by Markit Economics and the Chartered Institute of Purchasing & Supply revealed Tuesday. The headline Purchasing Managers' Index for the construction sector fell to 49.3 in November from 50.9 in the previous month. This is the lowest level of the index since August. Asia Market Indian Shares End Higher Ahead Of FDI Vote Indian shares saw a late-session rebound to end modestly higher on Tuesday as investors remained optimistic about the government winning a parliamentary vote on FDI in multi-brand retail. Initiating the debate on the issue in the Lok Sabha, BJP's Sushma Swaraj said the government's decision to allow FDI is a gross violation of promise made to Parliament. The debate on the FDI issue started at 2.00 pm. The rupee trimmed its earlier losses as the euro rose to a six-week high against the dollar following some positive news out of Europe, especially Spain's formal request for a bank bailout and Greece's surprise bond buyback offer to reduce its debt burden and unlock further aid from international creditors. Global cues were mixed as poor U.S. manufacturing data added to worries about the unresolved U.S. fiscal cliff. Asian markets turned in a mixed performance, while European stocks were modestly higher in early trading, led by banks and insurance companies. Closer home, the benchmark BSE Sensex ended the session up 43 points or 0.22 percent higher at 19,348, with only 11 of its components advancing. The broader Nifty index rose by 18 points or 0.31 percent to 5,889, while the BSE mid-cap and small-cap indexes ended up 0.1 percent and 0.6 percent, respectively. Among the prominent gainers in the Nifty pack, Jaiprakash Associates soared 4.5 percent after hiving off its cement plant in Gujarat to its wholly-owned subsidiary Jaypee Cement Corporation. Tata Power jumped 4 percent before signing an agreement with Jharkhand State Electricity Board for supplying power in Jharkhand. Market heavyweight Reliance Industries rose 2.6 percent. Drug maker Ranbaxy Laboratories added 2.3 percent after the government decided to maintain the status quo for brownfield pharma projects. ICICIBank, Lupin, Bajaj Auto, IDFC, Bank of Baroda and Reliance Infrastructure rose 1-2 percent. Banks ended mostly higher even as global ratings agency Moody's Investors Service maintained its negative outlook on the Indian banking system for the next 12-18 months, citing slow economic growth, high inflation and a challenging operating environment. Nalco rose 0.4 percent on price hike buzz. Aban Offshore gained 1.4 percent after it received shareholder nod to raise funds via an institutional share placement. Lanco Infratech ended flat after it entered into a long-term power supply pact with distribution companies in Madhya Pradesh. Among those that fell, IT stocks TCS and Wipro fell about 2 percent each, cement makers Grasim and Ambuja Cement lost 1-2 percent and utility vehicles manufacturer Mahindra & Mahindra retreated 2 percent. GMR Infrastructure fell over 2 percent after the Maldives government said it would wrest control of its international airport from GMR Infrastructure despite an order from a Singapore court suspending the project's cancellation. Dena Bank eased 0.4 percent as it waived off the entire processing fee for housing and car loans. MphasiS tumbled 3.6 percent, a day after the software services firm announced the acquisition of US-based analytics firm Digital Risk. CRISIL lost 2 percent and ICRA slumped nearly 10 percent after ratings agency Care Ratings fixed the price band for its Rs.504-540 crore initial public offering at Rs.700-750 a share. Adani Enterprises declined 1.8 percent, snapping a two-day rally. Shares of organized retailers ended in the red amid the much-awaited FDI debate in Parliament. Shoppers Stop fell 3 percent, Pantaloon Retail retreated 2.2 percent and Trent lost 2.4 percent. Jet Airways hit a 52-week high of Rs. 594 early in the session on stake sale reports before reversing gains to end 4.5 percent lower. Rival Spicejet edged down marginally, while shares of Kingfisher hit the 5 percent upper circuit limit. Commodities USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts Crude Slips From 2-week High The price of Crude oil was leveling off from a two-week high Tuesday morning amid a deadlock in U.S. budget talks. Light Sweet Crude oil futures for January delivery, were down $0.34 to $88,75 a barrel. Yesterday, oil settled marginally higher on a weak dollar and some upbeat manufacturing data out of China, seen as a sign of improving economic stability and oil demand growth in the world's second largest economy. This morning, the U.S. dollar was extending its one month low versus the euro and sterling. The buck continued to level-off firm its 7-month high versus the yen and ticking higher against the Swiss franc. In economic news, producer price inflation in the euro area slowed less than economists expected in October, data released by statistical office Eurostat showed. Producer price inflation eased to 2.6 percent in October from 2.7 percent each in September and August. Economists has forecast a faster slowdown to 2.5 percent. Today after the market hours, the API will release its Crude oil inventories report for the weekended November 30.