1. From The Floor
26 October 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets dipped yesterday, after a meeting of the European Union
FTSE 100 5,525.5 -0.4% 2.1% 9.1% -3.9% finance ministers was cancelled, raising concern that the EU leaders might
DJSTOXX 50 2,283.1 -0.7% 1.8% 11.4% -10.6% struggle to resolve the region’s debt-crisis at the forthcoming summit. ICAP
FTSEurofirst 300 982.6 -0.6% 2.1% 11.4% -10.0% slipped 3.8%, as UBS slashed its rating on the stock to “Sell” from “Neutral”.
German DAX 30 6,046.8 -0.1% 2.9% 16.4% -8.9%
Among banking stocks, Barclays lost 3.6%, as risk aversion increased among
French CAC 40 3,174.3 -1.4% 1.1% 13.0% -18.0%
investors. Among property groups, Hammerson, the top laggard on the FTSE
Russia RTS Index 1,500.1 -0.6% 5.1% 14.0% -7.4%
S&P 500 1,229.1 -2.0% 0.3% 8.2% 3.7%
100 index, shed 4.2%, while Land Securities and British Land retreated 3.5%
Dow Jones Industrials 11,706.6 -1.7% 1.1% 8.7% 4.9%
and 4.2%, respectively, in line with a drop in the broader equity market.
Nasdaq Composite 2,638.4 -2.3% -0.7% 6.2% 5.9% Reckitt Benckiser lost 3.4%, as it forecasted lower sales and profit at its
Brazil Bovespa 56,286.0 -1.1% 2.3% 5.7% -19.1% pharmaceutical division in the fourth-quarter. Vodafone lost 1.0%, following
Nikkei 225* 8,750.6 -0.1% 0.2% 2.4% -6.8% a downgrade to “Neutral” from “Outperform” at Exane BNP Paribas. FTSE
Shanghai Composite* 2,424.7 0.6% 1.1% -1.0% -21.0% 100 edged down 0.4% to 5,525.5, while FTSE 250 lost 0.4% to 10,428.4.
Sensex 17,254.9 1.9% 3.0% 6.8% -15.0%
*Time - BST 5:21:16 AM
European Market Snapshot
Other European markets ended lower yesterday, as US consumer confidence
5,580 slumped unexpectedly in October and after the European finance ministers’
meeting set on Wednesday to decide on bank recapitalization was cancelled,
5,558 raising investors’ concern about the sovereign debt crisis. Banks, BNP Paribas,
Unicredit and Credit Agricole dropped between 1.2% and 3.8%, as risk
5,535 aversion increased among investors. STMicroelectronics tumbled 7.4%, after
the company forecasted revenues below market expectations.
5,513 Pharmaceutical firm, Novartis, eased 3.3%, after the company announced
2,000 jobs cuts in Switzerland and the US. Puma declined 3.0%, after the
5,490 company stated that it might face some “headwinds” in the fourth quarter.
8:00 9:45 11:30 13:15 15:00 16:35
FTSEurofirst 300 index declined 0.6% to 982.6. German DAX Xetra 30 fell
0.1% to end at 6,046.8. French CAC-40 edged down 1.4% to 3,174.3.
11,950 US Market Snapshot
US markets plunged yesterday, reversing a three day rally, amid gloomy
11,880
economic data and dismal corporate earnings report. Furthermore, doubts
over European leaders’ willingness to agree on a plan to contain the debt
11,810
crisis and an unexpected drop in US consumer confidence in October also
weighed on investors’ sentiment. Netflix, the top laggard on the S&P 500
11,740
index, slumped 34.9%, after the company forecasted losses in 2012. 3M
tumbled 6.3%, and emerged as the top loser on the DJIA index, as it
11,670
9:30 10:45 12:00 13:15 14:30 15:45 reported a 1.6% decline in third-quarter earnings and slashed its full-year
forecast. Cummins retreated 5.1%, after it lowered its revenue guidance for
the full-year 2011. United Parcel Service declined 2.1%, after it lowered its
airlift capacity for Asia. Healthways, the top laggard on the NASDAQ,
8,780
plummeted 43.5%, after the company forecasted a substantial reduction in
its revenue on planned changes in its Cigna contract. DJIA tumbled 1.7% to
8,748
11,706.6. NASDAQ slumped 2.3% to 2,638.4. S&P 500 fell 2.0% to 1,229.1.
8,715
Asian Market Snapshot
8,683
Asian markets are trading lower this morning, tracking overnight losses on
Wall Street, amid fears that the European leaders might fail to devise a plan
8,650
9:00 9:45 10:30 11:15
to resolve the region’s debt crisis, ahead of the key European Union summit,
and after the US consumer confidence slumped to its lowest level since
March 2009. In Japan, automaker, Honda Motor, traded lower, after
Manoj Ladwa 0207 392 1487 Thailand’s flood forced the automaker to postpone the introduction of a
Index and Equity Desk 0207 392 1479 new car. Technology stock, Panasonic paced lower, following report that the
Institutional Equities 0207 392 1477 company would focus on making smaller flat-panel television amid
Commodities 0207 392 1403 weakening demand for the larger ones. Optical equipment maker, Olympus
Options 0207 392 1472 lost value after it was placed on a watch list by the Tokyo Stock Exchange. In
Currencies 0207 392 1455
Hong Kong, Bank of China and Hang Seng Bank traded lower, as risk
Internet Dealing Desk 0207 392 1434
appetite decreased among investors. In South Korea, Korean Airline and
Asiana Airlines lost values as the won appreciated against the dollar. Nikkei
225 index is trading 0.1% lower, at 8,750.6. Hang Seng index is trading 0.5%
lower at 18,869.9, while the Kospi index is trading 0.4% lower, at 1,880.6.
ETX Capital, Beaufort House, 15 St Botolph Street, London EC3A 7DT Tel+44 (0) 207 392 1453
customerservice@etxcapital.co.uk www.etxcapital.com Refer to the last page for disclaimer
2. 26 October 2011
Commodities
95.0
1730.0 7,650 2,220
94.0 1707.5 7,425 2,190
$/ M T
$/ b b l
7,200 2,160
$ /OZ
92.9 1685.0
6,975 2,130
91.9
1662.5
6,750 2,100
90.8
0:00 5:30 11:00 16:30 22:40 1640.0 12-Oct 17-Oct 20-Oct 25-Oct
0:00 5:40 11:20 17:00 23:40 Copper - LHS Aluminium - RHS
In Asia, crude oil for December delivery is trading 0.1% or $0.13 lower at $93.03 per barrel. Yesterday, crude oil for December
delivery added 2.1% or $1.90 to settle at $93.17 per barrel, after a satellite survey showed that crude oil inventories at Cushing
dropped 760,000 barrels to 28.1 million from 18 October to 21 October.
Gold for immediate delivery is trading 0.7% higher today, at $1,714.30 per ounce. Gold for December delivery advanced 2.9%
or $48.10 to end at $1,700.40 per ounce yesterday, as a drop in US consumer confidence and cancellation of the European
finance ministers’ meeting raised concerns about the global economy, increasing the demand for the yellow metal as a safe
haven asset.
Currencies
1.1530 1.6040 1.3970
1.1513 1.6018 1.3945
1.1495 1.5995 1.3920
1.1478 1.5973
1.3895
1.1460 1.5950
1.3870
0:00 6:40 13:20 20:00 2:40 0:00 6:40 13:20 20:00 2:40
0:00 6:40 13:20 20:00 2:40
At 0400 BST today, the GBP is 0.1% higher against the USD at $1.6024, marginally lower against the EUR at €1.1511, and
marginally higher against the JPY at ¥121.84.
The EUR is trading 0.2% higher against the USD at $1.3921.
The EUR is trading marginally higher against the JPY at ¥105.85.
The AUD is trading lower against the USD, amid speculation that Australia’s central bank would cut interest rates next week,
after data showed that inflation in the country slowed in the last quarter.
The JPY is trading higher against the USD, as a selloff in Asian equities increased the demand for the currency.
Yesterday, the USD closed higher against the EUR, as US consumer confidence slumped to its lowest level since March 2009 and
meeting of European financial officials was cancelled, prompting investors to invest in dollar as a safe haven asset.
The CAD ended lower against the USD, after the Bank of Canada cut its economic growth outlook and removed a reference to
withdrawing stimulus, decreasing the demand for the currency.
The NZD closed lower against the USD, on speculation that the Reserve Bank of New Zealand would keep its benchmark
interest rate at record low for an extended period after a report showed that the country’s inflation slowed by more-than-
economists forecast.
2 From The Floor Refer to the last page for disclaimer
3. 26 October 2011
Key Economic Releases Today
Country BST E c onomi c Indi c a tor Conse nsus P re vi ous Fre que nc y
UK 11:00 CBI Business Optimism (Oct) - -16.00 Monthly
UK 11:00 CBI Trends Selling Prices (Oct) - 13.00 Monthly
UK 11:00 CBI Trends Total Orders (Oct) -7.00 -9.00 Monthly
Germany 7:00 Import Price Index (YoY) (Sep) 6.90% 6.60% Monthly
France 7:45 Business Survey Overall Demand (Oct) - 16.00 Monthly
France 17:00 Total Jobseekers (Sep) - 2754.5 K Monthly
France 17:00 Total Jobseekers Change (Sep) 23.50 -2.00 Monthly
Eurozone 9:00 ECB Publishes its Bank Lending Survey - - -
Eurozone 17:00 EU Leaders Meet for Debt Summit - - -
US 12:00 MBA Mortgage Applications (W/E) - -14.90% Weekly
US 13:30 Durable Goods Orders (MoM) (Sep) -0.90% -0.10% Monthly
US 13:30 Cap Goods Orders Nondef Ex Air (Sep) 0.30% 1.10% Monthly
US 13:30 Cap Goods Ship Nondef Ex Air (Sep) - 2.80% Monthly
US 15:00 New Home Sales (Sep) 300.00 K 295.00 K Monthly
US 15:00 New Home Sales (MoM) (Sep) 1.70% -2.30% Monthly
US 15:30 DOE Cushing OK Crude Inventory (W/E) - 471.00 K Weekly
US 15:30 DOE U.S. Crude Oil Inventories (W/E) (Barrels) - -4729.0 K Weekly
Canada 14:00 Teranet/National Bank HPI (YoY) (Aug) - 5.30% Monthly
Canada 14:00 Teranet/National Bank HP Index (Aug) - 146.51 Monthly
Canada 15:30 Monetary Policy Report - - -
Japan 0:50 Corporate Service Price (YoY) (Sep) -0.10%* -0.30% Monthly
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 48.00
UK 0.7% 5.2% 2.5%
US 1.6% 3.9% 2.2% 42.25
Japan -1.0% 0.2% 1.0%
36.50
France 1.6% 2.2% 3.3%
Germany 2.7% 2.6% 2.1%
30.75
Brazil 3.1% 7.3% 4.0%
Russia 3.4% 7.2% 6.0% 25.00
Jun-10
Jun-11
Oct-09
Feb-10
Oct-10
Dec-09
Apr-10
Aug-10
Feb-11
Dec-10
Apr-11
Aug-11
India 7.7% 9.0% 8.8%
China 9.1% 6.1% 3.7%
3 From The Floor Refer to the last page for disclaimer
4. 26 October 2011
Key Corporate Releases Today
UK
Compa ny N a me Re sul ts Curre nc y Ful l Ye a r Conse nsus
E sti ma te d E P S E sti ma te d Re ve nue (Mn)
Glaxosmithkline Plc Q3 GBP 113.54 27,809.60
CSR Plc Q3 GBP 0.21 844.95
Lidco Group Plc Interim GBP 0.65 7.45
Stobart Group Ltd Interim GBP - -
Note: All Estimates are for Full Year
British American Tobacco, International Power Plc, Informa, Nyrstar SA
Aberdeen Development Capital, Gold Oil, Impala Platinum Holdings Ltd., Mirada, Nighthawk Energy, Wasabi Energy
Aberdeen Asian Smaller Companies Inv Trust, AIREA, BlackRock Greater Europe Inv Trust, Impax Asian Environmental
Markets, IndigoVision Group, JPMorgan Emerging Markets Inv Trust, Plexus Holdings, Smiths Group, Thorntons
Haynes Publishing Group
Mecom Group
Europe
Compa ny N a me Re sul ts Curre nc y Ful l Ye a r Conse nsus
E sti ma te d E P S E sti ma te d Re ve nue (Mn)
Telenor Asa Q3 NOK 7.45 98,629.10
Statoil Fuel And Retail Asa Q3 NOK 4.32 73,573.90
Dsv A/S Q3 DKK 7.57 44,490.20
Svenska Handelsbanken Ab Q3 SEK 19.18 32,722.20
Trelleborg Ab Q3 SEK 6.55 29,049.40
Note: All Estimates are for Full Year
US
Compa ny N a me Re sul ts Curre nc y Ful l Ye a r Conse nsus Re l e a se
E sti ma te d E P S E sti ma te d Re ve nue (Mn) T i me
ConocoPhillips Q3 USD 8.26 227,980.00 U
Ford Motor Co Q3 USD 1.93 126,850.00 U
Boeing Co Q3 USD 4.26 68,930.00 U
Medco Health Solutions Inc Q3 USD 4.08 68,650.00 U
No te: A ll Estimates are fo r Full Year (A = A fter the market clo ses, B = B efo re the market o pens, D = During market ho urs, U = Time unkno wn )
4 From The Floor Refer to the last page for disclaimer
5. 26 October 2011
What’s Hot & What’s Not
BP Hammerson -4.2%
4.4%
4.3% Randgold Resources Ltd British Land Co -4.2%
ICAP -3.8%
3.8% BG Group
2.8% Vedanta Resources Barclays -3.6%
2.6% Rolls-Royce Group Land Securities Group -3.5%
ARM Holdings Reckitt Benckiser Group -3.4%
2.5%
2.4% Burberry Group Capital Shopping Centres Group -3.3%
Capita Group Lonmin -2.9%
2.3%
1.8% Fresnillo Diageo -2.8%
1.6% Resolution Ltd Glencore International -2.6%
0.0% 1.3% 2.5% 3.8% 5.0% -5.0% -3.8% -2.5% -1.3% 0.0%
Major Movers & Shakers
BP rose 4.4%, after the company’s third-quarter earnings surpassed market expectations.
BG Group added 3.8%, after the company reported a 25.0% jump in its third-quarter earnings.
Precious metal stocks, Randgold Resources and Fresnillo, advanced 4.3% and 1.8%, respectively, tracking higher gold and silver
prices.
ARM Holdings climbed 2.5%, after the company raised its earnings estimates.
Icap dropped 3.8%, after UBS downgraded the stock from “Neutral” to “Sell”.
Barclays fell 3.6%, after the company agreed to sell its Russian retail and commercial banking operations to local banker Igor
Kim.
5 From The Floor Refer to the last page for disclaimer
6. 26 October 2011
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6 From The Floor