FinancialTrading.com Live Blog 23/5/2013
The European markets are now all closed, recording small losses across the board. The Stoxx 50 declined by 0.45%, the Dax by 0.56%. The FTSE 100 was the biggest loser of the day in Europe with declines of 0.63%. It’s a similar story across the Atlantic in New York, with all major indices down. The DJIA is down by 0.22%, the S&P 500 0.30% and the NASDAQ 0.32%.
It seems that investors have taken positive data and put a negative spin on it! With durable goods up it’s a solid sign of economic growth, so monetary stimulus may be withdrawn by the Federal Reserve.
There we have it folks! Durable goods increased, so keep your eyes glued to those tickers over the next half an hour or so while the market decides what it’s going to do from here.
InterOil has entered talks with Exxon Mobil Corp for exclusive rights to create natural gas fields in Papa New Guinea. This announcement saw InterOil stock rise by 9.1 percent to 2.
Gold is currently continuing its current rise as investors remain cautious of the markets and currency. This is of course having a knock on effect with Miners in the markets but it’s not enough drag the markets back into the green.
US Stock Futures have declined, signalling a probable decline for a third successive day. If the durable goods data turns out to be positive it will go a long way to mitigate the losses.
We’ve just published our full report on today’s stock market action in Japan. If you’ve just joined us then it’s well worth reading!
Stocks around Europe are continuing to slide after the bumpy session in Japan and continued uncertainty surrounding the likelihood of long term monetary easing. The FTSE is currently 0.66 percent down on it’s opening price, while the Stoxx 50 is down 0.38%. The DAX is “leading the way” however with declines of 0.95%.
It’s emerging that Mitsubishi Motors are looking to pay dividends for the first time in 15 years. It will require shareholders to sign off on capital reorganization however.
Raiffeisen Bank International AG have declined by 1.37 percent this morning after it emerged that their CEO has offered his resignation to the board.
The DAX and the Stoxx 50 have both slipped into the red in the last half an hour as investors begin easing off in anticipation of today’s US durable-goods data. The DAX is holding steady at 0.63% while the Stoxx 50 is currently at 0.19%.
Here’s one for those who love the little facts: Yesterday’s 7.3% decline on the Nikkei stock average was the largest decline since the Japanese earthquake in 2011 and despite today’s gains the index is still down 3.5% for the week.
The FTSE is currently down by 0.23%. A lot of that is down to the emotional trading that usually takes place in the opening hour of the markets. The DAX and the Stoxx 50 are both up, albeit only slightly with gains of 0.7% and 0.36% respectively.
Good morning ladies and gentlemen. We’re settling in for a day of trading today, expecting a slightly more positive day that yesterday. The American markets resisted the urge to spiral into free fall last night and the Nikkei clawed its way back from a 4-week low to register smalls gains. It’ll be interesting to see how this effects European and American stocks as the day progresses. Stick with us to find out!
There we have it ladies and gents. FinancialTrading.com’s first live blog has drawn to a close. As promised earlier, we’ll have market overviews published for you later tonight, with smaller pieces published as and when anything of note happens. Good night and happy trading!
Gold Futures have advanced by ($)18.50, a rise of 1.4 percent for June delivery. The precious metal was in free fall at the beginning of the week but is now showing signs of something of a comeback with the current declines in the market.
The US dollar has also declined against the Yen, bucking another recent trend. The dollar is 1.53 percent down against the Yen so far today and that could worsen as the trading in New York progresses through the day.
The action on the FTSE is now drawing to a close as it enters its final 10 minutes of trading for the day. We shall also be departing with the close of the London Stock Exchange but overviews of the days action will be published as the respective markets close.
US national gas supplies increased last week by 89 billion cubic feet. The increase just about came inline with expectations but still lead to a 2¢ rise in natural gas futures.
Google are on the receiving end of some negative PR at the moment. Eric Schmidt, the search engine’s executive chairman, was questioned about the company’s tax policies in the UK but opposition leader Ed Miliband. The interview, covered by the BBC, by clicking here. Google’s share price has declined by 0.55 percent.
A quick round up of the indices current prices across the globe: The FTSE is 2.31 percent down as it heads into its final hour of trading for the day, the Stoxx 50 and Dax 50 both closed down by 2.18 percent and 2.39 percent respectively. Across the Atlantic all markets are also down with the DJIA marginally leading the declines with a loss of 0.55 percent. The S&P 500 is down by 0.53 percent, followed by the NASDAQ which has seen a fall of 0.52 percent.
In addition to house prices rising by 1.9 percent in the US last month, new home sales also rose by 2.3 percent. New home sales for the year are now expected to exceed 454,000.
United States house prices have increased by 1.9 percent for the month of April. While the housing prices are still 12 percent lower than they were in 2007 at their peak, they are rising in all areas of the country in a fairly consistent manner.
Rue21 Inc was taken private by Apax Partners before the markets opened this morning at ($)42 per share, 23 percent up on yesterdays close. The deal is worth around ($)1.1 billion and should be completely signed off by the end of the year.
Weekly jobless data in the US has declined to 340,000 from the revised 363,000 last week. That’s a significant jump over such a short period but whether or not it has a big enough effect to pull the markets up after today’s start to trading is yet to be seen.
While the Federal Reserve has gone a long way to cause so much uncertainty in the markets today, the comments made by Peter Praet last night seem to have slipped under the radar. For those of you who haven’t heard, the Executive Board member said the ECB may be looking to “expand the range of instruments if we think it’s necessary for that objective” when asked if they would continue with their aggressive monetary easing policy on their path to a more stable Eurozone.
Wall Street futures are suggesting that we will see a 1 percent decline upon opening. The fall is being attributed to the signs of economic weakness in China and Japan. Japanese stocks are currently down by more than 7 percent for the day while China is suffering from the previously mentioned manufacturing decline — despite the best efforts of Lenovo!
Personal Computer manufacturer Lenovo has almost doubled its profits for for the first three months of 2013. The Chinese company shrugged off a global decline in PC sales and extended its profits to ($)126.9 million, an increase of ($)60.1 million year-on-year.
Chinese manufacturing declined for the first time in seven months in May. This is causing commodities such as coal, oil and copper to decline in price. Oil is down across the board with WTI Crude Oil being the worst hit, declining by 0.99%. COMEX Copper is down 1.95%.
Quick round up of the indices around Europe at lunch time: The FTSE 100 is down 1.79 percent, the Stoxx 50 is down 2.11% and the Dax is down to 2.41%. While it is all looking very negative at the moment, it’s likely that investors are pausing to see the reaction from across the Atlantic later today. There’s still a long way to go yet, folks!
Indices across Europe are down this morning after the Federal Reserve seemed to imply that they will ease off their monetary stimulus if the US economy starts showing solid signs of improvement.
Chip maker ARM has got off to a bad start today, declining by 6 percent. The company has fallen from 1096.00 to 994.50 since the start of the week.
Good morning ladies and gents! We’re just settling down for a day of trading, waiting patiently for the American markets to open in a couple of hours. Hang around, there should be plenty of talking points today!