1. From The Floor
13 September 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets closed lower yesterday, led by a sharp decline in commodity
FTSE 100 5,129.6 -1.6% 0.5% -3.6% -7.8% sector stocks, on increased European sovereign-debt concerns, as investors
DJSTOXX 50 2,055.1 -2.5% -2.5% -8.6% -20.6% speculated over Germany’s willingness to help Greece avert a debt default.
FTSEurofirst 300 891.0 -2.7% -2.1% -8.0% -18.1% Fresnillo, the biggest laggard on the FTSE 100 index, declined 7.5%, tracking
German DAX 30 5,072.3 -2.3% -3.3% -15.4% -19.0%
a drop in silver prices. Among other mining stocks, Rio Tinto, Antofagasta
French CAC 40 2,854.8 -4.0% -4.8% -11.2% -24.2%
and Eurasian Natural Resources slumped between 1.5% and 3.5%, tracking
Russia RTS Index 1,566.6 -3.6% -3.1% -1.8% 4.2%
S&P 500 1,162.3 0.7% -1.0% -1.4% 3.6%
the decline in base metal prices, amid concerns over demand prospects.
Dow Jones Industrials 11,061.1 0.6% -1.6% -1.8% 4.9%
Among banking stocks, HSBC slipped 2.4%, amid rumours of disposing its
Nasdaq Composite 2,495.1 1.1% 0.6% -0.5% 9.2% non-life insurance business. Lloyds Banking and Royal Bank of Scotland
Brazil Bovespa 55,685.5 -0.2% 1.2% 4.1% -18.1% dropped 1.6% and 3.4%, respectively, amid reports that Britain’s government
Nikkei 225* 8,586.0 0.6% -2.8% -4.8% -8.4% would force lenders to insulate their consumer and investment banking units
Shanghai Composite* 2,462.1 -0.1% 0.8% -3.7% -7.1% by 2019. FTSE 100 slid 1.6% to 5,129.6, while FTSE 250 lost 1.7% to 9,983.8.
Sensex* 16,696.5 1.2% -1.3% -2.0% -14.1%
*Time - BST 5:16:49 AM
European Market Snapshot
Other European markets dipped sharply yesterday, led by losses in banking
5,240 sector stocks, amid mounting speculation that Germany was preparing the
nation’s banks from a potential Greek default. Banking stocks, BNP Paribas,
5,193 Societe Generale and Credit Agricole, slumped between 11.0% and 12.0%,
amid speculation that Moody’s Investors Service might downgrade them
5,145 over their exposure to Greece debt. Insurers, AXA, Allianz and ING, tumbled
between 6.5% and 9.7%, in line with the fall in equity markets.
5,098 HeidelbergCement lost 3.7%, after Bankhaus Metzler downgraded the stock
to “Sell” from “Buy”. Utilities, EON and RWE, fell 3.7% and 4.0%,
5,050 respectively, following a blast at a nuclear-waste facility in France.
8:00 9:45 11:30 13:15 15:00 16:35
Automobile part manufacturer, Continental, plummeted 5.7%, after Exane
BNP Paribas cut its recommendation on the stock to “Neutral” from
“Outperform”. Volkswagen dropped 1.5%, after it refrained from selling or
11,070
reducing its stake in Suzuki Motor. FTSEurofirst 300 index slid 2.7% or 24.5
points to 891.0. German DAX Xetra 30 shed 2.3% or 117.6 points to 5,072.3.
11,008
French CAC-40 eased 4.0% or 119.8 points to 2,854.8.
10,945 US Market Snapshot
US markets advanced yesterday, recouping its earlier losses, as concerns over
10,883
European debt crisis eased amid reports that China was mulling for a
possible investment in Italian sovereign bonds. Bank of America added 1.0%,
10,820
9:30 10:45 12:00 13:15 14:30 15:45 after its CEO, Brian Moynihan, discussed a massive cost cutting plan. McGraw
-Hill Companies advanced 4.0%, after it announced to split its education and
media units to maximise shareholder value. Oil field services provider, Global
Industries surged 51.1%, as French oil services group, Technip, expressed its
8,605
interest to acquire the company. Micron Technology, the top gainer on the
S&P 500 index, climbed 5.3%, as UBS added the stock to its "most preferred"
8,590
list. Design software maker, Autodesk added 5.2%, as its second quarter
result surpassed market expectations. DJIA rose 0.6% or 69.0 points to close
8,575
at 11,061.1. NASDAQ climbed 1.1% or 27.1 points to settle at 2,495.1. S&P
500 gained 0.7% or 8.0 points to end at 1,162.3.
8,560
8,545 Asian Market Snapshot
9:00 9:45 10:30 11:15 13:00
Asian markets are trading higher this morning, as concerns about European
debt problems eased following reports that China might buy Italian bonds.
Manoj Ladwa 0207 392 1487
In Japan, automobile stocks, Mitsubishi Motors, Honda Motor and Suzuki
Index and Equity Desk 0207 392 1479
Motor traded higher, as concerns about future demand eased. Suzuki also
Institutional Equities 0207 392 1477 paced gains, after Volkswagen announced that it would keep an agreement
Commodities 0207 392 1403 between the two firms’ in place. Technology shares, Elpida Memory and
Options 0207 392 1472 Renesas Electronics gained values, tracking overnight gains in their US peers.
Currencies 0207 392 1455 Banking stocks, Mitsubishi UFJ Financial Group, Daiwa Securities Group, and
Internet Dealing Desk 0207 392 1434
Mizuho Financial Group paced gains, as risk aversion decreased among
investors. Nikkei 225 index is trading 0.6% higher, at 8,586.0. Markets in
Hong Kong and South Korean were closed on account of public holiday.
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. 13 September 2011
Commodities
89.5
1862.0 9,230 2,420
88.3 1846.0 9,073 2,390
$/ M T
$/ b b l
8,915 2,360
$ /OZ
87.0 1830.0
8,758 2,330
85.8
1814.0
8,600 2,300
84.5
0:00 5:30 11:00 16:30 22:00 1798.0 30-Aug 2-Sep 7-Sep 12-Sep
0:00 5:40 11:20 17:00 22:40 Copper - LHS Aluminium - RHS
In Asia, crude oil for October delivery is trading 0.7 % higher at $88.80 per barrel. Yesterday, crude oil for October delivery
added 1.1% or $0.95 to settle at $88.19 per barrel, amid bargain hunting by investors and as US equity markets rose higher, as
concerns over European debt crisis eased following reports that China was considering a possible investment in Italian
sovereign bonds.
Gold for immediate delivery is trading 0.3% higher today, at $1,829.1 per ounce. Gold for December delivery declined 2.5% or
$46.20 to end at $1,813.30 per ounce yesterday, as investors sold the metal in order to raise cash to cover losses in equity
markets, amid increasing worries about Europe’s debt crisis. Gold also paced losses, as the dollar rose against the major
currencies, decreasing the demand for the precious metal as a hedge against inflation.
Currencies
1.1717 1.5880 1.3700
1.1681 1.5853 1.3650
1.1645 1.5825 1.3600
1.1608 1.5798
1.3550
1.1572 1.5770
1.3500
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 trading 0.1 % higher against the USD at $1.586, 0.2% lower against the EUR at €1.1596, and
0.1% lower against the JPY at ¥122.15.
The EUR is trading 0.3% higher against the USD at $1.3677.
The EUR is trading 0.1% higher against the JPY ¥105.35.
The AUD traded lower against the JPY, following report that showed the Australian business confidence slid to the lowest in
more than two years.
The AUD and NZD traded lower against the USD, amid fears that Europe’s debt crisis would worsen, dampening demand for
higher-yielding assets.
Yesterday, the EUR traded lower against the USD and JPY, after Moody’s Investor Services placed several French banks under
review for a potential credit downgrade, and amid speculation that Germany was preparing for a default by Greece.
The CAD closed lower against the USD, after an Italian government official announced that Italy and China have had talks
about buying Italian government bonds.
2 From The Floor Refer to the last page for disclaimer
3. 13 September 2011
Key Economic Releases Today
Conse nsus/
Country BST E c onomi c Indi c a tor P re vi ous Fre que nc y
A c tua l s*
UK 0:01 RICS House Price Balance (Aug) -23.00* -22.00 Monthly
UK 9:30 Retail Price Index (MoM) (Aug) 0.60% -0.20% Monthly
UK 9:30 Retail Price Index (YoY) (Aug) 5.10% 5.00% Monthly
UK 9:30 Consumer Price Index (MoM) (Aug) 0.60% 0.00% Monthly
UK 9:30 Visible Trade Balance (Jul) -£8.40 bn -£8.87 bn Monthly
UK 9:30 Trade Balance; Non-EU (Jul) -£5.35 bn -£5.72 bn Monthly
UK 9:30 Total Trade Balance (Jul) -£4.20 bn -£4.50 bn Monthly
UK 9:30 DCLG House Prices (YoY) (Jul) -1.20% -2.00% Monthly
UK 9:30 Retail Price Index (Aug) 235.90 234.70 Monthly
UK 9:30 Retail Price Index Ex Mort Int.Payments (YoY) (Aug) 5.20% 5.00% Monthly
France 6:30 Consumer Price Index (MoM) (Aug) 0.30% -0.40% Monthly
France 6:30 Consumer Price Index (YoY) (Aug) 2.00% 1.90% Monthly
France 6:30 Consumer Price Index - EU Harmonised (MoM) (Aug) 0.30% -0.50% Monthly
France 6:30 Consumer Price Index Excluding Tobacco Index (Aug) - 121.94 Monthly
France 7:45 Current Account (Jul) - -€3.40 bn Monthly
US 12:30 NFIB Small Business Optimism (Aug) 88.40 89.90 Monthly
US 13:30 Import Price Index (MoM) (Aug) -0.80% 0.30% Monthly
US 13:30 Import Price Index (YoY) (Aug) 12.50% 14.00% Monthly
US 15:00 IBD/TIPP Economic Optimism (Sep) 37.50 35.80 Monthly
US 19:00 Monthly Budget Statement (Aug) -$132.00 bn -$129.38 bn Monthly
Japan 2:00 Japan Manpower Survey (Q4) 10.00%* 8.00% Quarterly
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 40.00%
UK 0.7% 4.4% 2.4%
US 1.6% 3.6% 2.1% 15.00%
Japan -1.0% 0.2% 1.0%
-10.00%
France 0.9% 1.9% 3.4%
Germany 2.7% 2.4% 3.3%
-35.00%
Brazil 4.2% 6.9% 4.0%
Russia 3.4% 9.0% 6.0% -60.00%
Sep-09
Jan-10
Jul-10
Sep-10
Jan-11
Jul-11
Nov-09
Mar-10
May-10
Nov-10
Mar-11
May-11
India 7.8% 8.6% 8.3%
China 9.7% 6.5% 3.9%
3 From The Floor Refer to the last page for disclaimer
4. 13 September 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)
Hilton Food Group Plc Interim GBP 24.57 957.32
Ashmore Group Plc Prelim GBP 28.64 402.99
Abcam Plc Prelim GBP 14.56 95.83
Charlemagne Capital Uk Ltd Interim GBP - 31.50
Note: All Estimates are for Full Year
IG Group Holdings
Colefax Group, Downing Distribution VCT 1, First Property Group, Harvard International, Liontrust Asset Managament,
Oxford Instruments, Prosperity Voskhod Fund Ltd, Northgate Plc
Argo Real Estate Opportunities Fund, OJSC Rosneft GDRS (Reg S)
DS Smith
Fresnillo, Mondi
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)
Elekta Ab (Publ) Q1 SEK 12.60 8,484.69
Groupe Crit Sa Q2 EUR 1.78 1,473.95
Digital Bros Spa Q4 EUR 0.32 155.00
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
Best Buy Co Inc Q2 USD 3.48 52,170.00 D
Cracker Barrel Old Country Store Inc Q4 USD 4.24 2,540.00 U
K12 Inc Q4 USD 0.89 626.21 U
Schiff Nutrition International Inc Q1 USD 0.52 236.60 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. 13 September 2011
What’s Hot & What’s Not
Fresnillo -7.5%
5.0% Man Group
1.6% ARM Holdings 3i Group -4.6%
Aviva -4.5%
1.5% Inmarsat
0.7% Standard Chartered Resolution Ltd -4.4%
0.3% Carnival Schroders - B -4.1%
Kingfisher Essar Energy -3.8%
0.3%
0.2% Marks and Spencer Group J Sainsbury -3.5%
ENRC -3.5%
Schroders - A -3.4%
Petrofac Ltd -3.4%
0.0% 1.4% 2.8% 4.1% 5.5% -8.0% -6.0% -4.0% -2.0% 0.0%
Major Movers & Shakers
Fresnillo slumped 7.5%, in line with a fall in silver prices.
Aviva dropped 4.5%, tracking losses in its European peers.
Oil stocks, Essar Energy and Petrofac, declined 3.8% and 3.4%, respectively, tracking lower crude oil prices.
ENRC shed 3.5%, as base metal prices declined.
Man Group rallied 5.0%, after positive comments from a JPMorgan Cazenove.
Arm Holdings rose 1.6%, after its peer, Broadcom, agreed to buy NetLogic Microsystems.
Inmarsat climbed 1.5%, amid speculation that the company might be a takeover target.
Kingfisher added 0.3%, after Deutsche Bank reiterated its “Buy” advice on the stock.
5 From The Floor Refer to the last page for disclaimer
6. 13 September 2011
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6 From The Floor
