ADVFN III World Daily Markets Bulletin (January 14, 2013).

	ADVFN III	World Daily Markets Bulletin
	Daily world financial news Supplied by advfn.com

Monday, January 14, 2013

US Market

Wall Street sentiment is still vacillating, as reflected by the U.S. index futures, which point to a mixed opening on Monday. Earlier in the global trading day, Asian stocks got a boost from comments from a Chinese official regarding allowing foreign buying in equities. Despite a weak industrial output data from the eurozone, European stocks are also higher. With little domestic earnings and economic news to digest, traders may prefer to stay on the sidelines ahead of the week's earnings flow and a host of market moving economic data. As of 6:15 am ET, the Dow futures are adding 5 points and the S&P 500 futures are moving up 1.40 points, while the Nasdaq 100 futures are retreating 8.50 points. U.S. stocks extended their gains in the week ended January 11th, although the optimism moderated from a week-ago. Earnings optimism kept the momentum going despite the encircling economic uncertainties. Several key economic reports are due in the unfolding week, lending additional clarity to the economic outlook. The spotlight is likely to be on the Commerce Department's retail sales report for December, the results of regional manufacturing surveys for January by the New York and the Philadelphia Federal Reserve, the Commerce Department housing starts report for December, the Federal Reserve's industrial production report for December and the results of the homebuilder sentiment survey by the National Association of Home Builders. Traders may also focus on the weekly jobless claims report, the preliminary consumer sentiment index based on a survey by Reuters and the University of Michigan, the Federal Reserve's Beige Book and the several Fed speeches scheduled for the week. The Labor Department's producer and consumer price inflation reports for December and the Commerce Department's business inventories report for November round up the economic events of the week. San Francisco Federal Reserve Bank President John Williams will deliver the keynote speech to the SEMI ISS 2013 Industry Strategy Symposium on the economic outlook in Half Moon Bay, California at 11:55 am ET. Atlanta Federal Reserve Bank President Dennis Lockhart is scheduled to speak on the economic outlook to the Rotary Club of Atlanta at 12:40 pm ET. Federal Reserve Chairman Ben Bernanke is due to speak at the University of Michigan in a conversation with Ford School Dean Susan M. Collins on monetary policy and the U.S. economy at 4:30 pm ET. In corporate news, Websense (WBSN) said its board has named John McCormack as its CEO, effective immediately, replacing Gene Hodges, who is retiring from the role. The company also released preliminary fourth quarter results, expecting billings of about $122 million, higher than its guidance for billings of $112 million to $117 million. At the same time, blaming the higher sales commissions associated with the higher than expected billings, Websense lowered its non-GAAP earnings per share. health Management Associates (HMA) release preliminary fourth quarter and full year results, which came in below consensus estimates. The company blamed the softness to the ongoing difficult economic backdrop. Encana (ECA) said its president and CEO Randall Eresman has decided to retire, effective today, after a 35-year stint at the company. The company appointed Clayton Woitas, one of its directors, as its president and CEO. Canadian Market CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts TSX Little Changed; RIM Jumps - Canadian Commentary Toronto stocks were little changed Monday morning as traders turned cautious ahead of a slew of corporate earnings reports from the U.S., Canada's largest trading partner. Also, weak industrial output data from the euro zone weighed on trader sentiment, even as they digest reports that the China planning to increase 10 times the current level of investment limits for foreign investors to encourage share buying. The S&P/TSX Composite Index edged up 15.90 points or 0.13 percent to 12,618.08, after adding just over 100 points or about 1 percent in the past four straight sessions. The price of gold was moving higher Monday morning with the euro advancing to a fresh 8-month high against the US dollar. gold for February gained $7.10 to $1,667.70 an ounce. Among gold plays, Aurizon Mines (ARZ.TO) surged 33 percent to C$4.550 after Alamos gold said it has commenced an offer to acquire Aurizon Mines for about C$780 million in cash and shares. On the other hand, Alamos gold Inc. dived nearly 10 percent. Agnico-Eagle Mines . Allied Nevada gold and Goldcorp. were up around 1 percent each. The price of Crude oil was trading flat Monday morning amid a generally weak US dollar. Crude for February eased $0.38 to $93.18 a barrel. Oil and gas company Encana Corp. announced that Randall Eresman, President & Chief Executive Officer has retired from the company on Friday. The stock slipped 0.15 percent. Diamond firm Harry Winston Diamond (HW.TO) gained 7 percent after it said it agreed to sell its luxury brand diamond jewelry and timepiece division, Harry Winston Inc., to Swiss watch maker Swatch Group Ltd. for about $750 million. Smartphone maker Research In Motion was up over 5 percent ahead of the launch of its BlackBerry 10 devises. Metals and mining company Uranium One surged 15 percent after it said it would be taken private following a plan of arrangement with JSC Atomredmetzoloto and its affiliate, Effective Energy N.V. for cash consideration of C$2.86 per share. Retained executive search firm The Caldwell Partners International Inc. (CWL.TO) added just over 1 percent after reporting that its first quarter net loss was C$56,000 compared to a loss of C$444,000 in the comparable period a year earlier. On the losers' side, life sciences company DiagnoCure Inc. lost about 12 percent even after reporting a fourth-quarter net loss of C$1.9 million or C$0.05 per share, narrower than C$2.3 million or C$0.06 per share in the same period last year. Base-metals miner Inmet Mining Corp. , which is the target of a hostile C$5.1 billion bid from Canadian miner First Quantum Minerals said Saturday that the letter sent a day earlier by First Quantum to David Beatty, chairman of the Inmet board of directors, was "hostile and counterproductive". Inmet Mining surrendered over 1 percent and First Quantum Minerals eased 0.40 percent. In economic news, the euro zone industrial production slipped unexpectedly by 0.3 percent in November from a month ago, when it was down 1 percent, Eurostat said. Economists had forecast output to grow 0.2 percent. On a yearly basis, industrial output decreased 3.7 percent, which was larger than the 3.3 percent decline logged in October. European Market FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts European Markets In Positive Territory The European are in positive territory on Monday, after Chicago Fed President Charles Evans said the U.S. central bank should keep policy accommodative to boost employment while lawmakers take steps to cut back spending. Asian shares rose broadly, following China Securities Regulatory Commission Chairman Guo Shuqing's statement that China can increase 10 times the current level of investment limits for foreign investors to encourage share buying. Eurozone industrial production slipped unexpectedly by 0.3 percent in November from a month ago, when it was down 1 percent, Eurostat said. Economists had forecast output to grow 0.2 percent. The euro Stoxx 50 index of eurozone bluechip stocks is adding 0.50 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.04 percent. The German DAX, the French CAC 40 and Switzerland's SMI are making moderate gains. The UK's FTSE 100 is modestly higher. In Frankfurt, Deutsche Bank is gaining 2.3 percent and Commerzbank is rising 1.6 percent. Munich Re is advancing 1.9 percent after Barclays raised the stock to ''Overweight'' from ''Underweight.'' Volkswagen, Daimler and BMW are in positive territory. Brenntag is climbing 1.3 percent after a broker upgrade. Fresenius was raised to ''Overweight'' from ''Neutral'' at HSBC. The stock is moderately up. Sky Deutschland, which announced a long-term financing, is gaining 2.3 percent. Automotive supplier Continental reported a 7 percent increase in fiscal 2012 sales, but projected a 5 percent growth in the current year. The stock is down 0.3 percent. In Paris, EDF is climbing 4.6 percent. The French government agreed to compensate the firm for the deficits as a result of the mandatory public service investments. Cap Gemini and Michelin are gaining around 3.9 percent each, while Saint-Gobain is advancing 3.2 percent. Credit Agricole is rising 3.7 percent and Societe Generale is adding 3.4 percent. BNP Paribas is moderately up. Credit Suisse raised Societe Generale to ''Outperform'' from ''Neutral.'' LVMH is losing 1 percent. Deutsche Bank cut the stock to ''Hold'' from ''Buy.'' In London, Eurasian Natural Resources is gaining 2.5 percent. Rio Tinto and Vedanta are gaining around 1 percent each. Lloyds Banking and Royal Bank of Scotland are gaining 2.5 percent and 1.6 percent, respectively. Pub retailer Greene King is gaining 2.1 percent. The firm said its retail like-for-like sales increased by 3.7 percent and food LFL sales were up 4.1 percent for the 36 weeks to January 6. Sage group is losing 1.5 percent. Associated British Foods is falling 1.4 percent. Clariant is losing 1.5 percent in Zurich. The stock was downgraded at HSBC. Swatch is rising 4 percent in Zurich. Canada's Harry Winston Diamond agreed to sell its luxury brand diamond jewelry and timepiece division to Swatch for $750 million plus assumption of up to $250 million of pro forma net debt. TNT Express is plunging over 40 percent in Amsterdam. United Parcel Service, Inc., which had agreed to buy the Dutch peer in a $6.77 billion deal, said the European Commission has informed both companies that it is working on a decision to prohibit the proposed acquisition. PostNL, which was trying to dispose of its holding in TNT, is plunging close to 35 percent. Across Asia/Pacific, Chinese stocks led markets higher. China's Shanghai Composite index jumped 3.1 percent, Australia's All Ordinaries gained 0.3 percent and Hong Kong's Hang Seng advanced 0.6 percent. In the U.S., futures point to a mixed open on Wall Street. In the previous session, stocks finished largely unchanged after showing a lack of direction throughout the session. In the commodity space, Crude for February delivery is adding $0.63 to $94.19 per barrel while February gold is gaining $7.9 to $1668.5 a troy ounce. Asia Market Asian Markets Mostly Trade Higher Despite a flat lead from Wall Street where stocks ended on a subdued note Friday following disappointing trade data, Asian stock are mostly trading higher on Monday with investors indulging in some selective buying. The mood, however, is a bit cautious amid release of a mixed batch of economic data from across the region. After moving up fairly smartly in early trades, the Australian stock market pared some gains, and is currently trading modestly up amid stock-specific activity. Shares from property trusts, utilities and telecommunications sections are trading higher. Mining, energy, financial, industrial and consumer staples stocks are trading mixed. The benchmark S&P/ASX 200 index, which advanced to 4,731 in early trades, is currently trading at 4,719.7, up 10.2 points or 0.2 percent from its previous close. The broader All Ordinaries index is up 10.5 points or 0.2 percent at 4,744.3, around 10 points off the day's high of 4,754.8. Among bank stocks, Commonwealth Bank of Australia and National Australia Bank are up with modest gains, while ANZ Bank and Westpac are down 0.2 percent and 0.9 percent, respectively. Bendigo & Adelaide Bank is up marginally, while Bank of Queensland is gaining about 2 percent. In the mining space, BHP Billiton (BHP, BBL) and Rio Tinto (RIO, RIO.L) are down 0.5 percent and 0.7 percent, respectively. Iluka Resources is trading higher by nearly 6 percent and Alumina is up 3.5 percent. Spark Infrastructure Group, APA Group and Sydney Airport are up 2.5 to 3 percent. Stockland, Fairfax Media, Whitehaven Coal, SP Ausnet, Commonwealth Property Office Fund and Aristocrat Leisure are trading higher by 1.5 to 2 percent. Meanwhile, UGL Limited, Lynas Corp., Aurora Oil & Gas, WorleyParsons, Oz Minerals, Treasury Wine Estates, Seek and James Hardie Industries are trading in negative territory, losing 1.5 to 3.6 percent. On the economic front, a gauge measuring inflation in Australia came in higher by 0.4 percent on month in December, after easing 0.1 percent in November, TD Securities said Monday. On a yearly basis, CPI was called higher by 2.4 percent, dipping from 2.5 percent in the previous month. That keeps inflation within the Reserve Bank of Australia's comfort zone, after the central bank trimmed interest rates last month by 25 basis points or 3 percent. According to data released by the Australian Bureau of Statistics, the total number of owner occupied home loans in Australia was down a seasonally adjusted 0.5 percent on month in November, standing at 46,199. The total value of home loans was down 0.8 percent on month to A$21.46 billion. Investment lending contracted 3.3 percent on month to A$7.52 billion. The value of owner occupied housing loans added 0.6 percent on month at A$13.940 billion. The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 15.8 percent in November from 18.7 percent in October. Meanwhile, the total number of job advertisements in Australia was down 3.8 percent on month in December, at 133.352, according to a survey from ANZ. That follows the upwardly revised 2.8 percent contraction in November, originally -2.9 percent. Internet job ads dropped 3.9 percent in December, while newspaper ads fell 0.4 percent. On a yearly basis, the total number of job ads was down 15.3 percent. Among other markets in the Asia-Pacific region, Shanghai, Hong Kong, Malaysia and South Korea are trading marginally higher. Indonesia and New Zealand are up with notable gains, while Singapore and Taiwan are trading notably lower. The Japanese market is closed for Coming of Age Day holiday. On Wall Street, stocks ended roughly flat on Friday, after showing a lack of direction throughout the session, as traders seemed reluctant to make any significant moves ahead of the release of a slew of key earnings news. While the Dow inched up 17.2 points or 0.1 percent to 13,488.4 and the Nasdaq crept up 3.9 points or 0.1 percent to 3,125.6, the S&P 500 edged down by less than a tenth of a percent to 1,472. Major European markets ended modestly higher on Friday. While the U.K.'s FTSE 100 index gained 0.3 percent, the French CAC 40 Index and the German DAX index both edged up by 0.1 percent. U.S. Crude oil declined on Friday, due largely to profit taking. Crude for February delivery ended down 26 cents at $93.56 a barrel on the New York Mercantile Exchange. Commodities USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts Crude Steady Above $94 The price of Crude oil was trading firm above $94 Monday morning amid a generally weak US dollar. Light Sweet Crude oil futures for February delivery, were up $0.62 to $94.18 a barrel. Last week, oil edged up marginally to settle near a 4-month high amid hopes of higher demand from China after data Chinese exports rebounded strongly in December. The consumer price index in China rose 2.5 percent year-on-year in December, the fastest pace since May. Economists expected the rate of inflation to increase to a more modest 2.3 percent. This morning, the U.S. dollar dipped to a fresh 8-month low versus the euro and around its 2-week low against sterling. The buck moved up to a fresh 30-month high versus the yen and ticking higher against the Swiss franc. In economic news, the euro zone industrial production slipped unexpectedly by 0.3 percent in November from a month ago, when it was down 1 percent, Eurostat said. Economists had forecast output to grow 0.2 percent. On a yearly basis, industrial output decreased 3.7 percent, which was larger than the 3.3 percent decline logged in October. During this week, traders focus will be on the Commerce Department's retail sales and housing starts reports for December, the Federal Reserve's industrial production report for December and the results of the homebuilder sentiment survey by the National Association of Home Builders. Traders may also focus on the weekly jobless claims report, the preliminary consumer sentiment index based on a survey by Reuters and the University of Michigan, the Federal Reserve's Beige Book and the several Fed speeches scheduled for the week. The Labor Department's producer and consumer price inflation reports for December and the Commerce Department's inventories report for November round up the economic events of the week. Also, focus will be on the Crude oil inventories data from the API, due out Tuesday after the market hours, and the EIA due out the subsequent day. Wausau Paper (WPP) said it commenced a process last year to identify strategic alternatives for its paper segment that will help it focus better on its highly successful tissue business. The Asian markets advanced solidly, led by the Chinese market after China Securities Regulatory Commission Chairman Guo Shuqing said that China can increase the current level of investment limits for foreign investors by ten times to encourage stock purchase. The Japanese market was closed for a public holiday. Australia's All Ordinaries hovered in positive territory for the better part of the session before closing up 11.90 points or 0.25 percent at 4,746. Utility stocks advanced, while energy, financial and consumer discretionary stocks also found buying interest. Hong Kong's Hang Seng Index closed at 23,413, up 149.19 points or 0.64 percent. China's Shanghai Composite Index rallied 68.74 points or 3.06 percent before closing at 2,312. After opening on a nervous note, European stocks have found firmer footing and are currently advancing moderately. United Parcel (UPS) announced that the European Commission has informed that it is working on a decision to prohibit the proposed acquisition of TNT Express by United Parcel Service. Due to prohibition by the EC, the offer condition relating to EU Competition Clearance will not be fulfilled and UPS will pay TNT a termination fee of 200 million euros and withdraw the offer. Tire maker Continental AG said it expects sales growth of 5 percent for 2013, slower than the 7 percent increase in 2012. The company expects adjusted EBIT to remain above 10 percent of revenue compared to 10.7 percent in 2012, blaming the softness to the contraction in the market for autos. Swiss luxury watchmaker Swatch announced a deal to buy Harry Winston jewelry arm for $750 million in cash. On the economic front, a report released by Eurostat showed that the euro area's industrial output fell 0.3 percent in November, defying expectations for a 0.2 percent increase. Annually, output fell 3.7 percent following a 3.3 percent decline in October.