1. From The Floor
19 September 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets moved higher on Friday, driven by gains in banking sector
FTSE 100 5,368.4 0.6% 2.9% 0.7% -3.1% stocks, amid optimism of positive results from the European Union Finance
DJSTOXX 50 2,163.0 0.6% 2.6% -4.3% -15.3% Ministers meeting in Poland. Satellite operator, Inmarsat, the top gainer on
FTSEurofirst 300 937.9 0.6% 2.4% -3.5% -12.8% the FTSE 100 index, surged 6.9%, amid takeover speculation. Banking stocks,
German DAX 30 5,573.5 1.2% 7.4% -6.3% -10.8%
Royal Bank of Scotland and Barclays rose 2.3% and 3.4%, respectively, as
French CAC 40 3,031.1 -0.5% 1.9% -6.9% -18.9%
investors kept economic worries on the back burner, in the wake of
Russia RTS Index 1,574.9 -1.8% -3.1% -5.3% 7.6%
S&P 500 1,216.0 0.6% 5.4% 1.9% 8.1%
intervention by central banks to provide dollar liquidity into the European
Dow Jones Industrials 11,509.1 0.7% 4.7% 0.9% 8.6%
financial system. Commodities trader, Glencore International advanced 4.0%,
Nasdaq Composite 2,622.3 0.6% 6.3% 4.4% 13.9% after its Chief Executive, Ivan Glasenberg, bought shares worth £10 million.
Brazil Bovespa 57,210.1 1.5% 2.6% 3.9% -15.4% BG Group climbed 1.7%, amid speculation of a Chinese oil company being
Nikkei 225 8,864.2 2.3% 1.4% -2.1% -6.8% interested in its Brazilian business. Commercial Services provider, Intertek
Shanghai Composite* 2,447.4 -1.4% -0.6% -4.6% -4.6% Group surged 2.1%, as JPMorgan upgraded the stock to “Overweight” from
Sensex* 16,795.3 -0.8% 0.4% 0.6% -12.8% “Neutral”. FTSE 100 added 0.6% to 5,368.4. FTSE 250 rose 1.0% to 10,428.2.
*Time - BST 5:19:34 AM
European Market Snapshot
5,405 Other European markets ended mostly higher on Friday, led by a rally in
banking sector stocks, amid speculation that Eurozone Finance Ministers
5,387 would provide additional bailout package to prevent the escalation of the
European debt crisis. Banking stocks, Credit Suisse Group, Banca Popolare
5,369 dell’Emilia Romagna and Banca Popolare di Sondrio, soared between 4.8%
and 11.0%, as risk appetite increased among investors. Lonza rallied 4.9%,
5,350 on news that the company has applied for a secondary listing on the
Singapore stock exchange. Utility stock, EON, gained 3.5%, after JPMorgan
5,332 Chase upgraded the stock to “Overweight” from “Neutral”. However, French
8:00 9:45 11:30 13:15 15:00 16:35
luxury stock, Hermes, dropped 4.8%, following a court ruling that reduced
likelihood of a possible takeover. SMA Solar Technology slumped 7.3%, after
Jefferies Group downgraded the stock to “Hold” from “Buy”. FTSEurofirst
11,538
300 index advanced 0.6% to 937.9. German DAX Xetra 30 rallied 1.2% or
65.3 points to 5,573.5. French CAC-40 fell 0.5% or 14.5 points to 3,031.1.
11,509
US Market Snapshot
11,480
US markets ended higher on Friday, amid easing worries over the European
debt crisis. Among the DJIA components, Boeing gained 1.7%, after Air
11,451
France-KLM considered placing orders worth around $12 billion on Airbus
and Boeing, while General Electric added 1.6%, after signing two joint
11,422
9:30 10:45 12:00 13:15 14:30 15:45
ventures in Russia and stating that it expected to generate $10 billion to $15
billion in new revenue over the next few years. Aviation Services providers ,
Rockwell Collins, the top gainer on the S&P 500 index, surged 7.8%, while
Goodrich Corp rallied 7.4%, amid rumours of being attractive targets for
8,875
United Technologies. Yahoo edged up 0.5%, amid reports of being a
takeover target by a private equity firm, Silver Lake. Diamond Foods surged
8,851
11.6%, after its fourth quarter results surpassed market expectation. DJIA
rose 0.7% or 75.9 points to 11,509.1. NASDAQ climbed 0.6% or 15.2 points
8,828
to settle at 2,622.3. S&P 500 gained 0.6% or 6.9 points to end at 1,216.0.
8,804
Asian Market Snapshot
8,780
9:00 9:45 10:30 11:15 13:00 13:45 14:30
Asian markets are trading lower this morning, led by losses in banks and
exporters, after European policy makers failed to introduce a plan to stem
the region’s debt crisis and amid speculation that pending big initial public
Manoj Ladwa 0207 392 1487
offerings in China would sap demand for existing equities in Chinese
Index and Equity Desk 0207 392 1479
markets. In Hong Kong, banks, HSBC Holdings, Industrial & Commercial Bank
Institutional Equities 0207 392 1477 of China and Bank of Communications, paced declines, after Chinese
Commodities 0207 392 1403 Premier, Wen Jiabao, stated that the government was concerned about
Options 0207 392 1472 inflation and would take measures to control inflation. Jiangxi Copper and
Currencies 0207 392 1455 Aluminum Corp. of China lost values, tracking lower base metal prices. In
Internet Dealing Desk 0207 392 1434 South Korea, oil refiners, S-Oil and SK Innovation, paced losses, tracking a fall
in crude oil prices. Japan markets are closed on account of a public holiday.
Hang Seng index is 2.1% lower, at 19,047.2, while the Kospi index is trading
0.3% lower, at 1,834.0.
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. 19 September 2011
Commodities
90.0
1830.0 9,080 2,370
89.1 1812.5 8,960 2,356
$/ M T
$/b b l
8,840 2,343
$ /OZ
88.3 1795.0
8,720 2,329
87.4
1777.5
8,600 2,315
86.5
0:00 5:30 11:00 16:30 22:40 1760.0 2-Sep 7-Sep 12-Sep 15-Sep
0:00 5:40 11:20 17:00 23:20 Copper - LHS Aluminium - RHS
In Asia, crude oil for October delivery is trading 1.3% or $1.11 lower at $86.85 per barrel. On Friday, crude oil for October
delivery declined 1.6% or $1.44 to settle at $87.96 per barrel, amid expectations of a decrease in energy demand, as investors
remained concerned about the pace of global economic recovery. Crude oil prices also lost values, on news that production
from the Sarir and Mesla oil fields in Libya are expected to reach 200,000 barrels per day by the end of September.
Gold for immediate delivery is trading 0.7% higher today, at $1,825.17 per ounce. Gold for December delivery added $33.30,
or 1.9%, to $1,814.70 per ounce on Friday, after Germany delayed approval of Europe’s bailout fund and Institute for
International Finance floated an additional proposal involving emerging markets and the IMF to help Greece’s bond
refinancing, forcing investors to purchase the precious metal as an alternative investment.
Currencies
1.1517 1.5854 1.3895
1.1480 1.5808 1.3829
1.1444 1.5762 1.3763
1.1407 1.5716
1.3696
1.1370 1.5670
1.3630
0:00 6:40 13:20 20:00 0:10 0:00 6:40 13:20 20:00 0:30
0:00 6:40 13:20 20:00 0:10
At 0400 BST today, the GBP is trading 0.6% lower against the USD at $1.5703, trading 0.4% higher against the EUR at €1.1489,
and 0.5% lower against the JPY at ¥120.715.
The EUR is trading 0.9% lower against the USD at $1.3667. The EUR is trading 0.8% lower against the JPY at ¥105.07.
The EUR is trading lower against the USD and JPY, as European policy makers failed to introduce a plan to prevent the
escalation of the region’s debt crisis, and after concerns about Greek default deepened.
The AUD and NZD are trading lower against the USD, on fears that the European economy would stall, reducing demand for
currencies linked to global growth.
On Friday, the USD closed higher against the EUR, as report that Greece would not get the next loan disbursement on
schedule, increased concerns of a slowdown in the European economy, decreasing the demand for high yielding assets.
2 From The Floor Refer to the last page for disclaimer
3. 19 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 Rightmove House Prices (MoM) (Sep) 0.70%* -2.10% Monthly
UK 0:01 Rightmove House Prices (YoY) (Sep) 1.50%* -0.30% Monthly
Eurozone 10:00 Construction Output s.a. (MoM) (Jul) - -1.80% Monthly
Eurozone 10:00 Construction Output w.d.a. (YoY) (Jul) - -11.30% Monthly
US 15:00 NAHB Housing Market Index (Sep) 15.00 15.00 Monthly
Japan - Respect-for-the-Aged Day Bank Holiday - - -
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 150.00
UK 0.7% 4.5% 2.3%
US 1.6% 3.6% 1.9% 112.50
Japan -1.0% 0.2% 1.0%
75.00
France 1.6% 2.2% 2.5%
Germany 2.7% 2.4% 1.8%
37.50
Brazil 3.1% 7.2% 4.0%
Russia 3.4% 9.0% 6.0% 0.00
Aug-09
Oct-09
Apr-10
Jun-10
Oct-10
Apr-11
Jun-11
Dec-09
Aug-10
Feb-10
Dec-10
Feb-11
India 7.7% 8.4% 8.3%
China 9.7% 6.2% 4.1%
3 From The Floor Refer to the last page for disclaimer
4. 19 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)
International Ferro Metals Ltd Prelim GBP (1.48) 1,845.34
Petra Diamonds Ltd. Finals GBP 0.21 421.12
Highland Gold Mining Ltd. Interims GBP 0.37 316.78
French Connection Group Plc Interim GBP 7.59 211.17
Gulfsands Petroleum Plc Interim GBP 0.81 169.53
Telit Communications Plc Interim GBP 6.98 125.10
PureCircle Ltd. (DI) Finals GBP 0.04 80.82
K3 Business Technology Group Plc Prelim GBP 28.70 69.40
Greenko Group Prelim GBP 8.52 69.00
Allergy Therapeutics Plc Prelim GBP 0.30 45.00
Globo Plc Interim GBP 0.03 44.80
Note: All Estimates are for Full Year
Dairy Crest Group, Ocado Group, PZ Cussons Plc
Bango, Powerhouse Energy Group, PZ Cussons, Speymill, XXI Century Investments Public Ltd.
Harmony Gold Mining Co Ltd, Impala Platinum Holdings Ltd
Royal Dutch Shell 'A', Royal Dutch Shell 'B'
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)
Zodiac Aerospace Sa Q4 Sales EUR 4.56 2,954.15
Manitou Bf Sa Q2 EUR 0.78 1,096.62
Kaba Holding Ag Final CHF 24.00 921.55
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
Lennar Corp Q3 USD 0.52 3,040.00 D
Accuray Inc Q4 USD (0.15) 377.67 U
Note: All Estimates are for Full Year
4 From The Floor Refer to the last page for disclaimer
5. 19 September 2011
What’s Hot & What’s Not
IMI -3.2%
6.9% Inmarsat
5.1% 3i Group ARM Holdings -2.5%
British Sky Broadcasting -1.6%
4.0% Glencore International
3.6% Legal and General Group Lonmin -1.5%
3.4% Barclays Experian -1.3%
Randgold Resources Ltd Kazakhmys -1.3%
3.3%
3.2% Associated British Foods Fresnillo -1.3%
Serco Group Admiral Group -1.3%
2.9%
2.5% Pearson Man Group -1.2%
2.4% Essar Energy Aggreko -1.2%
0.0% 1.9% 3.8% 5.7% 7.6% -3.4% -2.6% -1.7% -0.9% 0.0%
Major Movers & Shakers
Inmarsat soared 6.9%, on optimism that private equity firms might consider an investment in the company.
Barclays rallied 3.4%, as risk aversion decreased among investors.
Randgold Resources rose 3.3%, tracking higher gold prices.
ARM Holdings dropped 2.5%, after Goldman Sachs Group removed the stock from its “Conviction Buy” list. The stock also
paced declines, after its US peer, Research In Motion, reported lower-than-expected second-quarter earnings.
Kazakhmys declined 1.3%, as base metal prices declined.
5 From The Floor Refer to the last page for disclaimer
6. 19 September 2011
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6 From The Floor