Stocks Seeing Modest Weakness In Early Trading
After
coming under pressure over the course of the previous session, stocks
are seeing some further downside in early trading on Thursday. The major
averages have dipped into negative territory, although selling pressure
remains subdued.
The major averages are currently posting modest losses, near their lows for the young session. The Dow is down 16.65 points or 0.1 percent at 13,235.32, the Nasdaq is down 8.70 points or 0.3 percent at 3,035.66 and the S&P 500 is down 1.63 points or 0.1 percent at 1,434.18.
The
modest weakness on Wall Street comes as traders continue to keep a
close eye on developments in Washington, with uncertainty about the
fiscal cliff creeping back into the markets following recent comments by
President Barack Obama and House Speaker John Boehner.
Boehner
has indicated that he will bring his "Plan B" legislation to the floor
of the House for a vote despite a veto threat from the White House.
The
"Plan B" legislation would extend the Bush-era tax cuts for people
making up to $1 million, but Democrats claim it would raise taxes on
millions of working families.
Boehner has argued that the
president would be responsible for the largest tax increase in American
history if he can't persuade Senate Democrats to approve the
legislation.
As a result of the focus on the budget negotiations,
traders have largely shrugged off the latest batch of U.S. economic
data, including a report from the Commerce Department showing stronger
than expected third quarter GDP growth.
The Commerce Department's final
estimate showed that GDP increased at an annual rate of 3.1 percent in
the third quarter compared to the previous estimate of 2.7 percent
growth. Economists had expected a more modest upward revision to 2.8
percent.
A separate report from the Labor Department said
initial jobless claims moved back to the upside in the week ended
December 15th after unexpectedly falling to a two-month low in the
previous week
Gold stocks have shown a notable move to the downside in early trading, dragging the NYSE Arca Gold Bugs
Index down by 1.1 percent. The weakness among gold stocks comes amid a
sharp drop by the price of the precious metal, with gold for February
delivery falling $18.30 to $1,649.40 an ounce.
Semiconductor and networking stocks are also seeing some early weakness, while most of the major sectors are showing only modest moves.
In
overseas trading, stock markets across the Asia-Pacific region turned
in a mixed performance during trading on Thursday. While Japan's Nikkei 225 fell by 1.2 percent following recent strength, Hong Kong's Hang Seng Index inched up by 0.2 percent.
Meanwhile, the major European markets are turning in a lackluster performance. The German DAX Index and the U.K.'s FTSE 100 Index are nearly unchanged, while the French CAC 40 Index has edged up by 0.1 percent.
In the bond market, treasuries are
seeing modest strength, continuing to recover from their recent
weakness. Subsequently, the yield on the benchmark ten-year note, which
moves opposite of its price, is down by 1.6 basis points at 1.784
percent.
| Canadian Market |
 |
| CADUSD | Oil | Gold | Allbanc |
 |  |  |  |
| Please click on the images to view our interactive charts |
|
TSX Dips At Open Thursday
Bay Street stocks
opened lower Thursday amid selling in commodities, with the S&P/TSX
Composite Index shedding 22.54 points or 0.18 percent to 12,381.09.
The Global Gold Index
was the major loser, dipping nearly 1 percent. Agnico-Eagle Mines,
Kinross Gold, Detour Gold and Royal Gold were down around 1 percent
each.
In the oil patch, Niko Resources shed over 2
percent, while Nexen Inc. and Suncor Energy were ticking up. Among
base-metals stocks, First Quantum Minerals and Teck Resources were down
around 0.50 percent each.
Meanwhile, Bombardier Inc. rose
nearly 2 percent after it said it unit Bombardier Aerospace has signed a
Letter of Intent with an airline, which is based in the Americas for 12
CS100 airliners. The contract would be valued at approximately $870
million and could increase to US$2.08 billion Separately, the company
announced $764 million agreement with airBaltic, a Latvian carrier owned
by Air Baltic Corp.
The price of gold was steady
Thursday morning on value buying as the yellow metal was lingering near
its four-month low. However, uncertainty over negotiations surrounding
the US fiscal crisis capped big gains. Gold for February edged down
$2.50 to $1,665.20 an ounce.
Security systems company LOREX Technology
announced that it has obtained final court approval from the Ontario
Superior Court of Justice of proposed plan of arrangement, pursuant to
which FLIR Systems Inc. (FLIR) will acquire all the issued and
outstanding common shares of LOREX.
Precious metals miner Timberline Resources announced the pricing of underwritten public offering of 5 million common shares at $0.20 per share.
In economic news, Statistics Canada
said retail sales rose for a fourth consecutive month, increasing 0.7
percent to $39.4 billion in October. Gains were reported in 8 of 11
sub-sectors, representing 92 percent of total retail trade. The increase
was led by higher sales at motor vehicle and parts dealers and gasoline
stations.
|
| European Market |
| |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
 |  |  |  |
| Please click on the images to view our interactive charts |
|
Fiscal Cliff Worries Drag European Markets
The European markets are
under pressure on Thursday, as reports that the U.S. fiscal cliff
negotiations have hit a road block dampened risk appetite. Major indices
are little changed with traders exercising caution. The Asian markets
closed with modest gains.
The White House Wednesday threatened to
veto a plan put forward by leading House Republicans aimed at delaying
the onset of the 'fiscal cliff.' The plan, called 'Plan B,' was
presented by House Speaker John Boehner.
According to a White House, Boehner's
proposal would only raise roughly a third of the $1 trillion in tax
increases from high-income households that had previously been proposed
by the Speaker.
The White House Communications Director Dan Pfeiffer
said President Barack Obama is still seeking "a significant, balanced
deal that is good for American families, the economy and for our
nation's future" and has put forward a proposal that offers to meet
Boehner halfway on taxes and spending.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.05 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.11 percent.
The German DAX and the French CAC 40 are modestly lower while Switzerland's SMI is losing moderately. The FTSE 100 index of the U.K. is marginally up.
In Frankfurt, Infineon Technologies and ThyssenKrupp are declining 1.4 percent each. Commerzbank and Deutsche Bank are dropping moderately. Car parts manufacturer Rheinmetall is
retreating nearly 3 percent. Citigroup cut the stock to ''Sell'' from
''Neutral.'' Deutsche Boerse is rising 1.1 percent and HeidelbergCement
is advancing 1 percent.
In Paris, Cap Gemini is dropping 2.8 percent. Carrefour and France Telecom are falling 1.3 percent.
STMicroelectronics
is falling around 1 percent. Sweden's LM Ericsson Telephone, which has a
50 percent stake in ST-Ericsson, a joint venture with
STMicroelectronics, said it would not acquire the majority of the joint
venture and would explore various strategic options for the assets.
Bucking the trend, Alcatel-Lucent is rising 3.1 percent.
In London, Weir Group
is advancing 2.7 percent after the engineering solutions provider
announced the acquisition of US-based Mathena, Inc., a provider of
pressure control rental equipment and services for onshore oil and gas
drilling applications.
Temporary power solutions provider Aggreko is adding 2.2 percent and Aberdeen Asset Management is gaining 1.7 percent.
Diageo is rising 0.5 percent. JPMorgan raised the stock to ''Neutral'' from ''Underweight.''
Consort Medical is climbing 6.1 percent. The medical device maker is selling its King Systems unit to Denmark's Ambu for $170 million.
Bunzl is declining 1.7 percent. United Utilities Group and Reckitt Benckiser are falling 1.5 percent and 1.2 percent, respectively.
Ericsson,
which also announced a non-cash charge of $1.22 billion in its fourth
quarter as it writes down assets related to its stake in ST-Ericsson, is
losing nearly 3 percent in Stockholm.
|
| Asia Market |
Asian Stocks Mixed Amid Fiscal Cliff Worries
Asian stocks turned
in a mixed performance on Thursday as worries intensified that U.S.
budget talks were dragging on with little progress. The GOP-controlled
House is scheduled to vote later today on House Speaker John Boehner's
"Plan B" proposal to push a backup tax bill, but President Barack Obama
has already threatened to veto the bill that would extend the Bush-era
tax cuts for anyone earning less than $1 million. A Congressional Budget
Office report predicted that the U.S. economy would drop into a
recession in the first half of the New Year, if the Congress fails to
act on the fiscal cliff.
Japanese shares fell on profit taking following sharp gains in recent sessions. The Nikkei average lost 1.2 percent, while the broader Topix
index edged down just 0.1 percent. Heavyweight Fast Retailing tumbled
4.1 percent after rallying over 27 percent since November 15, mobile
service carrier Softbank shed 3.8 percent and camera maker Canon
fell 2.9 percent. Financials ended mostly higher on hopes for more
accommodative central bank and economic stimulus policies under the
incoming conservative government. Mitsubishi UFJ Financial Group rose 1.2 percent and Nomura Holdings advanced 2.1 percent.
Shares of property developers extended gains after the Bank of Japan expanded its asset-buying program, as widely expected. Mitsui Fudosan rose 1.5 percent and Mitsubishi Estate
added 1.6 percent. The central bank has decided to increase the size of
its asset purchase program by JPY 10 trillion to JPY 101 trillion,
which includes additional purchases of treasury discount bills and the
Japanese Government Bonds of JPY 5 trillion each. The Policy Board said
that the bank will discuss the medium to long term price stability at
its next meeting in January.
Australian shares rose modestly as
defensive stocks and banks gained ground, offsetting losses in miners.
There was little reaction to Treasurer Wayne Swan's comments on fiscal
policy. He said that the government is unlikely to achieve its promised
budget surplus in the fiscal year ending June 2013 in the wake of
falling tax revenues due to a high Australian dollar and global economic
uncertainty. The benchmark S&P/ASX 200 rose 0.4 percent, while the broader All Ordinaries index ended up 0.3 percent.
Among the major banks, Commonwealth, NAB, ANZ and Westpac rose between 0.3 percent and 0.7 percent. Hearing implant developer Cochlear and biopharmaceutical firm CSL gained about a percent each, while global miner Rio Tinto lost 0.6 percent, BHP Billiton edged down marginally and Fortescue Metals Group retreated 3.4 percent.
Seoul shares ended higher despite apprehensions over the progress in U.S. budget talks. The benchmark Kospi
average rose 0.3 percent as trading resumed after a holiday yesterday
for presidential elections won by Park Geun Hye. She became the nation's
first female president edging her rival Moon Jae-in of the Democratic
United Party.
Hyundai Engineering & Construction jumped
4 percent on expectations that the new government would announce
measures to revive the housing and construction sectors. Banks also
ended on a firm note, with Hana Financial Group and Woori Finance Holdings gaining 1-3 percent.
New Zealand shares rose to a fresh five-year high, extending the previous session's strong rally. Shares of casino and hotel operator SkyCity Entertainment
rose 1.3 percent, adding to the previous session's 5 percent rally,
after the company unveiled plans to invest more than A$300 million ($375
million) upgrading its Adelaide casino. Mainfreight and Diligent Board
Members soared 4-6 percent to record highs, helping lift the benchmark NZX-50 index up 1.3 percent to its highest level since December 2007.
Telecommunications network operator Chorus climbed 4.4 percent, outdoor clothing and equipment company Kathmandu Holdings rallied 3.6 percent and utility Contact Energy
added 3.1 percent, while Xero, Trade Me, Goodman Fielder and Heartland
New Zealand fell 1-3 percent. Fletcher Building, the nation's largest
construction company, advanced 2.2 percent after official data showed
the New Zealand economy grew at a slower pace than expected in the
September quarter despite increased building activity.
China's Shanghai Composite rose 0.3 percent and Hong Kong's Hang Seng
index edged up 0.2 percent despite concerns about the lack of progress
in U.S. fiscal cliff talks. Singapore's Straits Times index was up 0.4
percent, while India's benchmark Sensex was losing 0.2 percent, Indonesia's Jakarta Composite index was down half a percent and the Taiwan Weighted average lost over a percent.
|
| Commodities |
| |
| USDCAD | USDEUR | USDGBP | USDJPY |
 |  |  |  |
| Please click on the images to view our interactive charts |
|
Crude Slips As Traders Focus US Fiscal Cliff
The price of crude oil was paring recent gains Thursday morning as traders await more cues from the US budget talks.
Light Sweet Crude Oil
(WTI) futures for February delivery, slipped $0.10 to $89.88 a barrel.
Yesterday, oil extended gains for fourth session to settle higher, with
investors upbeat after an Energy Information Administration report
showed crude inventories to have declined, albeit less-than-expected
last week. Investors were also focused on the U.S. budget talks that
will avert a fiscal cliff indicated with higher taxes and severe
spending cuts starting January, although some uncertainty crept in after
the White House rejected House Speaker John Boehner's alternate plan to
avert the fiscal cliff.
Wednesday during trading hours, the EIA said that US crude oil inventories dipped 1.00 million barrels, while gasoline stocks were
up 2.20 million barrels in the weekended December 14. Analysts expected
2.3 million decline in crude oil supplies, while gasoline stocks are
seen adding 2 million barrels last week.
This morning, the U.S. dollar was
lingering around its 7-month low versus the euro and a 2-month low
against sterling. The buck advanced to a fresh 20-month high versus the
yen and ticking lower against the Swiss franc.
In economic news from the euro zone, Switzerland's unemployment rate as defined by the International Labor Organization
increased slightly to 4.3 percent in the third quarter from 4.2 percent
in the previous year, the Federal Statistical Office said. During the
same period, EU's jobless rate climbed to 10.3 percent from 9.4 percent.
Traders
will look to the weekly jobless claims report from the US Labor
Department, due out at 8:30 a.m ET. Economists expect claims to increase
to 359,000 from 343,000 in the previous week.
Simultaneously, the Commerce Department will
release its final estimate of third quarter GDP. Economists expect the
GDP growth estimate to be upwardly revised to 2.8 percent.
The National Association of Realtors is
scheduled to release its report on existing home sales for November at
10 a.m. ET. Economists estimate existing home sales of 4.900 million for
the month compared to 4.79 million units in October.
|
|
No comments:
Post a Comment