ETX Capital -From The Floor is a daily briefing and global market report to keep you informed as you trade
1. From The Floor
24 November 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets slid sharply yesterday, with the FTSE 100 index extending its
FTSE 100 5,139.8 -1.3% -6.7% -7.4% -7.9% losing streak for the eighth day, after Germany missed its fund-raising target
DJSTOXX 50 2,123.9 -1.2% -6.3% -7.6% -15.2% at a recent bond auction, increasing concerns about the Europe’s debt crisis.
FTSEurofirst 300 902.2 -1.3% -7.0% -8.8% -16.2% Further, downbeat economic data from China, Europe and the US weighed
German DAX 30 5,457.8 -1.4% -7.7% -9.9% -18.6%
on investor sentiment. Insurer, Prudential slid 3.5%, as markets remained
French CAC 40 2,822.4 -1.7% -7.9% -12.4% -24.2%
sceptical over the management’s ability to meet targets. Among fund
Russia RTS Index 1,422.0 -0.6% -6.5% -5.8% -9.6%
S&P 500 1,161.8 -2.2% -6.1% -7.4% -1.6%
managers, Man Group, the top decliner on the FTSE 100 index, fell 10.0%,
Dow Jones Industrials 11,257.5 -2.1% -5.4% -5.5% 2.0%
while Ashmore and Schroders lost 3.6% and 4.3%, respectively, amid concern
Nasdaq Composite 2,460.1 -2.4% -6.8% -8.9% -1.4% that the global turmoil would trigger another wave of redemptions. BHP
Brazil Bovespa 54,972.1 -1.6% -6.1% -3.4% -19.1% Billiton, Anglo American and Rio Tinto declined between 1.4% and 2.3%, as
Nikkei 225* 8,199.0 -1.4% -1.8% -6.0% -17.8% Australia’s lower parliament passed legislation for a 30% tax on miners.
Shanghai Composite* 2,401.9 0.3% -2.9% 1.0% -15.3% Fresnillo fell 2.5%, as Chinese manufacturing PMI data showed a drop in
Sensex* 15,530.3 -1.1% -6.4% -7.3% -20.3% November. FTSE 100 shed 1.3% to 5,139.8. FTSE 250 lost 1.4% to 9,568.8.
*Time - BST 6:21:00 AM
European Market Snapshot
5,215 Other European markets ended lower yesterday, as weak manufacturing
data from China and poorly received German 10-year-bond auction weighed
5,194 on market sentiment. Financial stocks, BNP Paribas Societe Generale and
Intesa Sanpaolo dropped between 2.7% and 3.7%, as risk appetite decreased
5,173 among investors. Among other financial stocks, BBVA, dropped 2.0%, after
Credit Suisse trimmed its target price on the stock, citing “increased solvency
5,151 pressures”. Carmakers, Volkswagen, BMW and Daimler, lost between 2.6%
and 4.4%, after a report showed that China’s manufacturing PMI dropped to
5,130 a 32-month low in November. Carmakers also paced declines after eurozone
8:00 9:45 11:30 13:15 15:00 16:35
PMI surveys indicated that the European economy shrank in the fourth-
quarter. Telecommunication stock, Alcatel-Lucent, slumped 5.0%, amid
lingering concerns over its cash flow. FTSEurofirst 300 index declined 1.3%
11,520
to 902.2. German DAX Xetra 30 dropped 1.4% to 5,457.8. French CAC-40
eased 1.7% to end at 2,822.4.
11,448
US Market Snapshot
11,375
US markets slumped yesterday, as bond yields across Europe surged to
record-highs, after Germany failed to meet its fund-raising target at the
11,303
latest bond auction, increasing concern that the Europe's debt crisis is
worsening. Alcoa and Halliburton declined 4.1% and 4.5%, respectively, after
11,230
9:30 10:45 12:00 13:15 14:30 15:45 data indicated that Chinese manufacturing activity shrunk in November.
Bank of America, the top decliner on the DJIA index, retreated 4.3%, while
Goldman Sachs, Wells Fargo, and Citigroup slipped between 1.7% and 3.9%,
as the Federal Reserve imposed a tougher capital test on the 31 largest US
8,330
banks. AK Steel Holding, the top decliner on the S&P 500 index, lost 8.9%,
while Alpha Natural Resources and US Steel declined 6.7% and 7.6%,
8,285
respectively, amid worries over the pace of the global economic growth.
DJIA declined 2.1% to close at 11,257.5. NASDAQ slumped 2.4% to settle at
8,240
2,460.1. S&P 500 lost 2.2% to end at 1,161.8.
8,195
Asian Market Snapshot
8,150
9:00 9:45 10:30 11:15 13:00 13:45
Asian markets are trading mostly higher this morning, shrugging off strong
overnight losses on Wall Street, after China increased efforts to support cash-
strapped companies in Zhejiang and rural areas hit by a credit squeeze to
Manoj Ladwa 0207 392 1487
bolster economic growth. In Japan, Canon, Mazda Motor and Nintendo
Index and Equity Desk 0207 392 1479
paced declines, after US consumer spending and factory orders weakened in
Institutional Equities 0207 392 1477 October. Nomura Holdings lost value, after the company announced 1,000
Commodities 0207 392 1403 jobs cuts. In Hong Kong, Bank of China and Hang Seng Bank paced gains,
Options 0207 392 1472 after People’s Bank of China cut the reserve ratio for more than twenty rural
Currencies 0207 392 1455 credit cooperatives by 50 basis points. In South Korea, KT gained value, on
Internet Dealing Desk 0207 392 1434 hopes that its 4G Long Term Evolution (LTE) customer base would increase,
after it received an approval to switch off its 2G network. Nikkei 225 index is
trading 1.4% lower, at 8,199.0. Hang Seng index is trading 0.5% higher at
17,944.7, while the Kospi index is trading 0.4% higher, at 1,789.9.
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. 24 November 2011
Commodities
98.0
1712.0 7,860 2,160
97.3 1703.0 7,670 2,110
$/ M T
7,480 2,060
$/bbl
$/OZ
96.7
1694.0
7,290 2,010
96.0
1685.0
7,100 1,960
95.3
10-Nov 15-Nov 18-Nov 23-Nov
0:00 6:40 13:20 20:00 3:20 1676.0
0:00 6:40 13:20 20:00 3:00 Copper - LHS Aluminium - RHS
In Asia, crude oil for January delivery is trading 0.3% or $0.24 higher at $96.41 per barrel. Yesterday, crude oil for January
delivery dropped 1.9% or $1.84 to $96.17 per barrel, amid expectation of a decrease in energy demand, after data showed
that manufacturing activity in China and the eurozone slowed down in November. Additionally, a rise in dollar also weighed on
crude oil prices.
Gold for immediate delivery is trading marginally lower today, at $1,689.65 per ounce. Gold for December delivery declined
0.4% or $6.50 to settle at $1,695.90 per ounce yesterday, as the dollar rose against the major currencies, decreasing the
demand for the precious metal as a hedge against inflation.
Currencies
1.1660 1.5670 1.3550
1.1633 1.5623 1.3488
1.1605 1.5575 1.3425
1.1578 1.5528
1.3363
1.1550 1.5480
1.3300
0:00 7:00 14:00 21:00 4:00 0:00 7:00 14:00 21:00 4:00
0:00 7:00 14:00 21:00 4:00
At 0400 BST today, the GBP is trading 0.2% higher against the USD at $1.5555, marginally lower against the EUR at €1.1627,
and 0.1% lower against the JPY at ¥119.88.
The EUR is trading 0.3% higher against the USD at $1.3379.
The EUR is trading marginally lower against the JPY at ¥103.11.
The EUR is trading lower against the JPY, ahead of Italy’s bond auction scheduled tomorrow and as Germany failed to secure
bids for 35.0% of the 10-year government bonds.
The JPY is trading higher against most of its 16 major peers, amid speculation that German business confidence index dropped
for a fifth month, forcing investors to invest in safe haven assets.
Yesterday, the USD closed higher against the EUR, amid mounting concerns about the European debt crisis, after Germany
received insufficient bids at a bond auction.
The USD closed higher against all of its major peers, as European services and manufacturing index shrank in November and as
PMI data signalled a decline in China’s manufacturing activity, increasing the demand for safe haven currency.
2 From The Floor Refer to the last page for disclaimer
3. 24 November 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 9:30 Total Business Investment (YoY) (Q3) - 3.80% Quarterly
UK 9:30 Gross Domestic Product (YoY) (Q3) 0.50% 0.50% Quarterly
UK 9:30 Private Consumption (Q3) 0.20% -0.80% Quarterly
UK 9:30 Government Spending (Q3) 0.50% 1.10% Quarterly
UK 11:00 CBI Industrial Trends Survey - Orders (MoM) (Nov) -19.00 -18.00 Monthly
UK 11:00 CBI Trends Selling Prices (Nov) 0.00 1.00 Monthly
Germany 7:00 Gross Domestic Product w.d.a (YoY) (Q3) 2.60% 2.60% Quarterly
Germany 7:00 Gross Domestic Product n.s.a (YoY) (Q3) 2.50% 2.50% Quarterly
Germany 9:00 IFO - Expectations (Nov) 96.00 97.00 Monthly
Germany 7:00 Exports (Q3) 1.60% 2.30% Quarterly
Germany 7:00 Capital Investment (Q3) 1.20% 0.30% Quarterly
Germany 7:00 Government Spending (Q3) 0.20% 0.20% Quarterly
Germany 7:00 Construction Investment (Q3) -0.10% -0.90% Quarterly
US - Thanksgiving day - - -
Japan 23:30 Tokyo Consumer Price Index (YoY) (Nov) -0.50% -0.50% Monthly
Japan 23:30 Tokyo Consumer Price Index Ex-Fresh Food (YoY) (Nov) -0.30% -0.40% Monthly
Japan 23:30 Tokyo Consumer Price Index Ex Food, Energy (YoY) (Nov) -0.90% -1.00% Monthly
Japan 23:30 National Consumer Price Index (YoY) (Oct) -0.20% 0.00% Monthly
Japan 23:30 National Consumer Price Index Ex-Fresh Food (YoY) (Oct) -0.10% 0.20% Monthly
Japan 23:30 National Consumer Price Index Ex Food, Energy (YoY) (Oct) -0.90% -0.40% Monthly
Japan 23:50 Corporate Service Price (YoY) (Oct) -0.10% -0.10% Monthly
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 47.0
UK 0.5% 5.0% 2.3%
US 1.6% 3.5% 2.0% 42.0
Japan 0.0% 0.0% 1.0%
37.0
France 1.6% 2.3% 3.5%
Germany 2.5% 2.5% 2.0%
32.0
Brazil 3.1% 7.0% 4.0%
Russia 4.8% 7.2% 6.0% 27.0
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
India 7.7% 10.1% 8.9%
China 9.1% 5.5% 3.7%
3 From The Floor Refer to the last page for disclaimer
4. 24 November 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)
Thomas Cook Group Plc Prelim GBP 16.55 111,954.00
Dixons Retail Plc Interim GBP 1.42 8,197.04
Pennon Group Plc Interim GBP 41.97 1,239.73
PayPoint Plc Interim GBP 39.00 171.55
Young & Co's Brewery Plc Interim GBP 31.64 169.07
Future Prelim GBP 1.57 123.27
Castings Plc Interim GBP 26.30 114.00
Grainger Plc Prelim GBP 4.59 95.42
London & Stamford Property Plc Interim GBP 5.77 67.62
Helical Bar Interim GBP 3.75 16.99
Phytopharm Plc Prelim GBP - -
London Mining Q3 GBP - -
F&C Capital & Income Investment Trust Prelim GBP - -
eServGlobal Ltd., Hangar 8, Impax Asian Environmental Markets, Leyshon Resources Ltd., Netcall, Ruffer Investment
Company Ltd., Wildhorse Energy Ltd. (DI)
Economic Lifestyle Property Inv Co Ltd., JSC Acron GDR (Reg S)
Collins Stewart Hawkpoint, Hansteen Holdings
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)
Hellenic Petroleum SA Q3 EUR 0.63 8,899.55
UNIQA Versicherungen AG Q3 EUR 0.17 5,633.67
Raiffeisen Bank International AG Q3 EUR 4.26 5,525.02
Petrolia ASA Q3 NOK (0.52) 477.56
Orco Property Group SA Q3 EUR (1.66) 303.55
S IMMO AG Q3 EUR 0.22 192.51
Pegas Nonwovens SA Q3 CZK 2.00 155.98
Raysearch Laboratories AB Q3 SEK 0.52 118.20
LDLC.Com SA Q2 EUR - -
Keyware Technologies NV Q3 EUR - -
Note: All Estimates are for Full Year
4 From The Floor Refer to the last page for disclaimer
5. 24 November 2011
What’s Hot & What’s Not
Glencore International Man Group -10.0%
2.4%
2.1% Admiral Group Royal Bank of Scotland -5.9%
Hargreaves Lansdown -5.7%
1.5% Inmarsat
1.4% Intl Consolidated Airlines Group Essar Energy -4.8%
0.8% Shire Burberry Group -4.5%
GlaxoSmithKline Schroders - B -4.3%
0.7%
0.6% Smiths Group Intercontinental Hotels Group -4.2%
Reckitt Benckiser Group Investec -4.1%
0.3%
0.2% Imperial Tobacco Group Resolution Ltd -3.6%
0.2% SABMiller Ashmore Group -3.6%
0.0% 0.7% 1.5% 2.2% 2.9% -10.5% -7.9% -5.3% -2.6% 0.0%
Major Movers & Shakers
Glencore International advanced 2.4%, after the company was included in the Stoxx Europe 600 index.
Fund managers, Man Group, Schroders and Ashmore Group, sank between 3.6% and 10.0%, amid concerns that the global
economic turmoil would deteriorate future fund cash flow.
Royal Bank of Scotland lost 5.9%, as risk aversion increased among investors.
Essar Energy dropped 4.8%, in line with a fall in crude oil prices.
Burberry Group declined 4.5%, amid demand worries, after disappointing Chinese manufacturing PMI data.
5 From The Floor Refer to the last page for disclaimer
6. 24 November 2011
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6 From The Floor