Stock Market Brief Deck for "this does not happen often".pdf
ETX Capital -From The Floor is a daily briefing and global market report to keep you informed as you trade
1. From The Floor
01 December 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets surged yesterday, extending their previous session gains, after
FTSE 100 5,505.4 3.2% 7.1% -0.7% -0.4% global central banks took coordinated steps to ease funding for European
DJSTOXX 50 2,299.0 3.3% 8.2% -0.8% -7.2% lenders, lifting market sentiment. Furthermore, China’s action to lower bank
FTSEurofirst 300 982.0 3.6% 8.8% -1.4% -8.0% reserve ratio requirement and upbeat US economic data fuelled the
German DAX 30 6,088.8 5.0% 11.6% -0.9% -9.0%
momentum. Among mining stocks Antofagasta, the top gainer on the FTSE
French CAC 40 3,154.6 4.2% 11.8% -2.7% -12.6%
100 index, jumped 9.2%, while Rio Tinto, Kazakhmys and Xstrata rose
Russia RTS Index 1,540.8 5.1% 8.4% -1.4% -3.5%
S&P 500 1,247.0 4.3% 7.3% -0.5% 5.6%
between 6.4% and 6.5%, following a surge in base metal prices. Software
Dow Jones Industrials 12,045.7 4.2% 7.0% 0.8% 9.4%
group, Sage added 5.5%, as its full year profits rose by 8%. Among banking
Nasdaq Composite 2,620.3 4.2% 6.5% -2.4% 4.9% stocks, Barclays, Lloyds Banking Group and Royal Bank of Scotland climbed
Brazil Bovespa 56,875.0 2.8% 3.5% -2.5% -16.0% between 6.7% and 7.5%, as global economic concerns eased. Royal Dutch
Nikkei 225* 8,640.7 2.4% 1.4% -6.2% -15.1% Shell and BP rose 3.9% and 5.0%, respectively, as crude oil prices surged.
Shanghai Composite* 2,412.3 3.4% -2.6% -5.5% -17.3% Pharmaceuticals, GlaxoSmithKline and Shire gained 2.7% and 4.3%,
Sensex* 16,575.0 2.8% 2.7% -8.9% -17.4% respectively, as Citigroup initiated coverage on both the stocks with a “Buy”
*Time - BST 6:14:30 AM rating. FTSE 100 rose 3.2% to 5,505.4. FTSE 250 gained 2.8% to 10,315.3.
5,550
European Market Snapshot
Other European markets ended sharply higher yesterday, led by a rally in
5,481 banks and carmakers, after the US Federal Reserve and five other central
banks reduced the interest rate on dollar swaps to ease pressures on
5,413 financial markets. Moreover, measures by China to lower capital ratio
requirements for its banks buoyed market sentiment. Among banking stocks,
5,344 Credit Agricole, UniCredit and Deutsche Bank, climbed between 3.1% and
8.4%, as risk aversion decreased among investors, while BNP Paribas rose
5,275 4.6%, after it announced that it is adequately capitalized. Carmakers,
8:00 9:45 11:30 13:15 15:00 16:35 Volkswagen, Daimler and BMW soared between 5.5% and 6.0%, on hopes of
a boost to their exports. Luxury-goods makers, PPR and LVMH, surged 6.1%
and 4.1%, respectively, amid optimism that demand would increase in
12,080
Chinese markets. FTSEurofirst 300 index climbed 3.6% to 982.0. German DAX
Xetra 30 rallied 5.0% to 6,088.8. French CAC-40 rose 4.2% to end at 3,154.6.
11,935
US Market Snapshot
11,790
US markets rallied yesterday, extending gains for the third consecutive
session, as global central banks' coordinated market intervention to make
11,645
dollar funding cheaper for European banks and upbeat economic data,
boosted investor sentiment. Markets shrugged off Standard & Poor's credit
11,500
9:30 10:45 12:00 13:15 14:30 15:45 rating downgrade on 15 large US banks. JPMorgan Chase, the top riser on
the DJIA index, jumped 8.5%, while Bank of America, Goldman Sachs and
Morgan Stanley rallied between 7.3% and 11.1%, as concerns about global
economic growth eased. United States Steel jumped 15.3%, and emerged as
8,680
the top gainer on the S&P 500 index, while AK Steel Holding, Peabody
Energy and Alpha Natural Resource gained between 13.4% and 15.2%, after
8,615
China indicated that it would ease its monetary policy. Cisco gained 5.4%,
after Deutsche Bank recommended buying the stock. DJIA surged 4.2% to
8,550
12,045.7. NASDAQ jumped 4.2% to 2,620.3. S&P 500 soared 4.3% to 1,247.0.
8,485
Asian Market Snapshot
8,420 Asian markets are trading sharply higher this morning, taking cues from
9:00 9:45 10:30 11:15 13:00 13:45
strong overnight gains on Wall Street, after six central banks led by the US
Federal Reserve agreed to cut the cost of dollar funding through swap
Manoj Ladwa 0207 392 1487
agreements to ease the strain on the Europe’s financial markets, offsetting
Index and Equity Desk 0207 392 1479
disappointing Chinese manufacturing data. In Japan, Mitsubishi UFJ Financial
Institutional Equities 0207 392 1477 Group and Nomura Holdings traded higher, tracking a rise in their European
Commodities 0207 392 1403 and US peers. Shippers, Nippon Yusen KK and Mitsui OSK paced higher after
Options 0207 392 1472 a broker upgraded the stocks to “Outperform” from “Neutral”. In Hong
Currencies 0207 392 1455 Kong, Cnooc and Petrochina, paced gains, in line with a rise in crude oil
Internet Dealing Desk 0207 392 1434 prices. In South Korea, Hynix Semiconductor gained value, amid report that
the company has plans to invest won 4.0 trillion next year. Nikkei 225 index
is trading 2.4% higher, at 8,640.7. Hang Seng index is trading 5.9% higher at
19,041.4, while the Kospi index is trading 4.0% higher at 1,921.9.0.
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. 1 December 2011
Commodities
101.8
1755.0 7,620 2,110
101.0 1741.3 7,490 2,073
$/ M T
7,360 2,035
$/bbl
$/OZ
100.3
1727.5
7,230 1,998
99.5
1713.8
7,100 1,960
98.8
17-Nov 22-Nov 25-Nov 30-Nov
0:00 6:40 13:20 20:00 3:20 1700.0
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 34 cents higher at $100.70 per barrel. Yesterday, crude oil for January
delivery rose 0.6% or 57 cents to settle at $100.36 per barrel, amid expectations of an increase in energy demand, after the US
Federal Reserve and five other central banks made additional funds available to lower borrowing costs for European banks in a
bid to resolve the European debt crisis. Crude oil prices also rose on news that China would cut the reserve requirement ratio
for banks and amid positive economic reports in the US.
Gold for immediate delivery is trading 0.1% lower today, at $1,746.55 per ounce. Gold for December delivery added 1.9% or
$32.10 to end at $1,745.50 per ounce yesterday, as the dollar weakened against the major currencies, increasing the demand
for the precious metal as a hedge against inflation.
Currencies
1.1735 1.5800 1.3530
1.1714 1.5725 1.3458
1.1693 1.5650 1.3385
1.1671 1.5575
1.3313
1.1650 1.5500
1.3240
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 0.1% lower against the USD at $1.5693, 0.1% lower against the EUR at €1.1666, and
marginally higher against the JPY at ¥121.91.
The EUR is trading 0.1% higher against the USD at $1.3452.
The EUR is trading 0.2% higher against the JPY at ¥104.50.
The EUR is trading higher against the JPY and USD, after six global central banks announced a plan to make dollar funding
cheaper for European banks.
The AUD is trading lower against the USD, after reports showed that Australia’s retail sales growth was lower-than-expected
and building approvals declined in October, increasing speculation that Australia’s central bank would ease monetary policy.
The NZD is trading lower against the JPY and the USD, following report that China’s manufacturing index contracted for the
first time since February 2009, decreasing the demand for high-yielding currencies.
Yesterday, the USD closed lower against all of its major peers, after the world’s major central banks moved to cut borrowing
costs for banks and strengthen existing swap lines.
The CAD ended higher against the USD, as central banks including the Bank of Canada reduced the cost of emergency dollar
funding to ease Europe’s sovereign-debt crisis, boosting demand for riskier assets.
2 From The Floor Refer to the last page for disclaimer
3. 1 December 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 - Halifax House Price (3MoY) (Nov) - -1.80% Monthly
UK - Halifax Plc House Prices s.a. (MoM) (Nov) - 1.20% Monthly
UK 9:30 Purchasing Managers' Index Manufacturing (Nov) 47.00 47.40 Monthly
Germany 8:55 Purchasing Managers' Index Manufacturing (Nov) 47.90 47.90 Monthly
France 8:15 Purchasing Managers' Index Manufacturing (Nov) 47.60 47.60 Monthly
Eurozone 9:00 Purchasing Managers' Index Manufacturing (Nov) 46.40 46.40 Monthly
Switzerland 6:45 Gross Domestic Product (YoY) (Q3) 1.80% 2.30% Quarterly
Switzerland 6:45 Gross Domestic Product (QoQ) (Q3) 0.10% 0.40% Quarterly
Switzerland 8:30 SVME-Purchasing Managers Index (Nov) 46.70 46.90 Monthly
US 13:30 Continuing Claims (W/E) 3650.00 K 3691.00 K Weekly
US 13:30 Initial Jobless Claims (W/E) 390.00 K 393.00 K Weekly
US 15:00 ISM Manufacturing Index(Nov) 51.50 50.80 Monthly
US 15:30 EIA Natural Gas Storage Change (W/E) (Barrels) 11.00 bn 9.00 bn Weekly
US 22:00 Domestic Vehicle Sales (Nov) 10.40 mn 10.29 mn Monthly
Japan 5:00 Official Reserve Assets (Nov) - $1209.90 bn Monthly
Japan 5:00 Vehicle Sales (YoY) (Nov) - 28.30% Monthly
Japan 23:50 Capital Spending (Q3) -3.60% -7.80% Quarterly
Japan 23:50 Monetary Base (YoY) (Nov) - 17.00% Monthly
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 13.0%
UK 0.5% 5.0% 2.3%
US 1.5% 3.5% 2.0% 1.8%
Japan 0.0% -0.2% 1.0%
-9.5%
France 1.6% 2.3% 3.7%
Germany 2.5% 2.5% 2.3%
-20.8%
Brazil 3.1% 7.0% 4.0%
Russia 4.8% 7.2% 6.0% -32.0%
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% 3.6%
3 From The Floor Refer to the last page for disclaimer
4. 1 December 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)
Greene King Plc Interim GBP 50.92 1,103.78
May Gurney Integrated Services Interim GBP 28.64 648.84
Consort Medical Plc Interim GBP 47.22 134.67
Anite PLC Interim GBP 5.30 111.12
OpSec Security Group Interim GBP 3.81 43.11
Falkland Islands Holdings Plc Interim GBP 20.30 30.35
OMG Plc Prelim GBP 2.77 28.73
Note: All Estimates are for Full Year
Kingfisher
AI Claims Solutions, Clinton Cards, Millwall Holdings
Millwall Holdings, OJSC Phosagro GDR (Regs)
Impax Asian Environmental Markets, Manchester & London Inv Trust
Andrews Sykes Group, ITV, Ladbrokes, Sony Corp., Toshiba Corp., JPMorgan Claverhouse Inv Trust
Europe
Euro p e
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)
Pierre Et Vacances SA Q4 EUR 2.53 1,427.94
Neopost SA Q3 Sales EUR 4.81 997.30
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
Kroger Co Q3 USD 1.96 90,160.00 D
Barnes and Noble Inc Q2 USD (0.26) 7,430.00 U
PVH Corp Q3 USD 5.12 5,820.00 U
Uti Worldwide Inc Q3 USD 0.84 5,100.00 D
H and R Block Inc Q2 USD 1.63 3,790.00 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. 1 December 2011
What’s Hot & What’s Not
Antofagasta National Grid -2.6%
9.2%
7.5% Royal Bank of Scotland Resolution Ltd -2.0%
Tate & Lyle -1.7%
7.1% Lloyds Banking Group
6.7% Barclays Capita Group -1.3%
6.6% Investec Cairn Energy -1.0%
6.5% Kazakhmys
6.5% Xstrata
6.5% Vedanta Resources
6.4% Rio Tinto
6.2% BHP Billiton
0.0% 2.4% 4.9% 7.3% 9.7% -3.1% -2.3% -1.6% -0.8% 0.0%
Major Movers & Shakers
Miners, Antofagasta, Kazakhmys and BHP Billiton, soared between 6.2% and 9.2%, in line with a rise in base metal prices.
Banking stocks, RBS, Lloyds and Barclays, surged between 6.7% and 7.5%, as risk appetite increased among investors.
Capita fell 1.3%, despite S&P upgrading its rating on the stock to “Strong Buy”.
Cairn Energy lost 1.0%, after two of its additional wells failed to find a commercial discovery in Greenland.
5 From The Floor Refer to the last page for disclaimer
6. 1 December 2011
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6 From The Floor