1. From The Floor
15 September 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets closed higher yesterday, led by a gain in retail sector stocks,
FTSE 100 5,227.0 1.0% -1.7% -2.3% -6.1% despite a rating downgrade of two French banks, as debt crisis fears in
DJSTOXX 50 2,106.8 1.2% -2.0% -6.2% -18.6% Europe receded, ahead of the teleconference between the leaders of
FTSEurofirst 300 913.2 1.4% -2.0% -5.8% -16.0% Greece, France and Germany. Retailer, Next, the top gainer on FTSE 100,
German DAX 30 5,340.2 3.4% -1.2% -11.3% -14.9%
soared 6.3%, as it raised its full-year profit guidance after posting an 8.5%
French CAC 40 2,949.1 1.9% -4.0% -9.0% -21.9%
rise in its first-half profit. Peers, Kingfisher, Marks & Spencer and Burberry
Russia RTS Index 1,570.4 -0.1% -6.0% -5.1% 5.2%
S&P 500 1,188.7 1.3% -0.8% -1.3% 6.0%
rose between 2.4% and 5.6%. BP added 3.5%, as it announced its intention
Dow Jones Industrials 11,246.7 1.3% -1.5% -2.1% 6.8%
to double the size of the operations at the newly acquired Brazilian bio-fuel
Nasdaq Composite 2,572.6 1.6% 0.9% 0.7% 12.3% operations. Barclays, Royal Bank of Scotland and Lloyds Banking Group
Brazil Bovespa 56,286.0 1.3% -0.6% 3.0% -16.8% jumped 2.5%, 4.2% and 5.5%, respectively, amid optimism of a possible
Nikkei 225* 8,640.0 1.4% -2.8% -6.2% -8.4% resolution to European debt crisis. FTSE 100 added 1.0% to 5,227.0, while
Shanghai Composite* 2,484.5 0.0% -1.2% -5.4% -7.6% FTSE 250 gained 1.0% to 10,107.9.
Sensex* 16,784.1 0.4% -2.1% -0.8% -13.6%
*Time - BST 5:15:14 AM
European Market Snapshot
Other European markets ended sharply higher yesterday, amid optimism
5,278 that China might still buy the eurozone government bonds, and after
European Commission President, Jose Manuel Barroso, proposed options for
5,246 joint eurozone bond sales. Automakers, Volkswagen and BMW, rose 5.1%
and 6.0%, respectively, amid optimistic comments from automakers at the
5,214 Frankfurt show. Tire maker, Michelin, gained 5.1%, after its CEO stated that
the group’s main markets showed no signs of a slowdown. Industrial stock,
5,181 Finmeccanica, soared 17.0%, amid speculation that the company is close to
selling its AnsaldoBreda train-making division to General Electric. Hearing aid
5,149 -maker, Sonova Holding, rallied 14.0%, after the company received an
8:00 9:45 11:30 13:15 15:00 16:35
approval from the US FDA to resume sales of its HiRes 90K cochlear implant.
However, banks, Societe Generale and Credit Agricole, lost values, after
Moody’s Investors Service downgraded its credit rating on both the banks.
11,388
FTSEurofirst 300 index rose 1.4% to 913.2. German DAX Xetra 30 rallied
3.4% to 5,340.2. French CAC-40 added 1.9% to 2,949.1.
11,296
US Market Snapshot
11,204
US markets rallied yesterday, extending their gains for the third consecutive
session, as worries over Greece eased, after French and German leaders
11,112
indicated that Greece would remain in the eurozone. FedEx, General Electric,
and Home Depot added between 1.4% and 2.7%, amid easing worries of an
11,020
9:30 10:45 12:00 13:15 14:30 15:45 economy slowdown. Dell advanced 3.3%, after announcing a $5 billion share
buy-back programme. Among financial stocks, Ameriprise Financial and
Hartford Financial Services added 2.1% and 4.8%, respectively, as Credit
Suisse upgraded its ratings on both the stocks to “Outperform” from
8,697
“Neutral”. Cablevision Systems, the top gainer on the S&P 500 index, soared
7.0%, after forging a deal with Time Warner, enabling its subscribers to
8,683
adopt TV on portable Internet-enabled devices. DJIA rose 1.3% to 11,246.7.
NASDAQ climbed 1.6% to 2,572.6. S&P 500 gained 1.4% to 1,188.7.
8,669
8,655 Asian Market Snapshot
Asian markets are trading higher this morning, as German and French
8,641
9:00 9:45 10:30 11:15 13:00
leaders reaffirmed their support for debt-laden Greece and after China’s
NDRC Vice Chairman, Zhang Xiaoqiang, stated that China would offer help
for Europe's most-indebted nations. In Japan, Technology stock, Elpida
Manoj Ladwa 0207 392 1487
Memory, traded higher after the company announced that it might shift
Index and Equity Desk 0207 392 1479
some production in Taiwan, to cope with a strong yen and an industry
Institutional Equities 0207 392 1477 slump. Banking stocks, HSBC Holdings, Sumitomo Mitsui Financial Group and
Commodities 0207 392 1403 Mizuho Financial Group, paced gains as risk appetite increased among
Options 0207 392 1472 investors. In Hong Kong, Agricultural Bank of China, Bank of China and Bank
Currencies 0207 392 1455 of communications gained values, as risk aversion decreased among
Internet Dealing Desk 0207 392 1434
investors. In South Korea, exporters, Hyundai Motor, Kia Motors and
Samsung Electronics, paced higher, as concerns about future demand eased.
Nikkei 225 index is trading 1.4% higher, at 8,640.0. Hang Seng index is 0.4%
higher, at 19,126.8, while the Kospi index is trading 1.8% higher, at 1,779.8.
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. 15 September 2011
Commodities
90.5
1849.0 9,230 2,420
89.9 1838.3 9,073 2,390
$/ M T
$/ b b l
8,915 2,360
$ /OZ
89.3 1827.5
8,758 2,330
88.6
1816.8
8,600 2,300
88.0
0:00 5:30 11:00 16:30 22:10 1806.0 31-Aug 5-Sep 8-Sep 13-Sep
0:00 5:40 11:20 17:00 22:40 Copper - LHS Aluminium - RHS
In Asia, crude oil for October delivery is trading 0.3% lower at $88.63 per barrel. Yesterday, crude oil for October delivery
declined1.4% or $1.30 to settle at $88.91per barrel, after the US Energy Information Administration report showed that
gasoline inventories increased in the country, offsetting a higher-than-expected decline in crude oil inventories. Crude oil also
declined after a report showed that US retail sales unexpectedly stalled in August, increasing concerns over the strength of the
economy and demand for fuel.
Gold for immediate delivery is trading 0.4% lower today, at $1,815.8 per ounce. Gold for December delivery dropped 0.2% or
$3.60 to end at $1,826.50 per ounce yesterday, as concerns about the eurozone debt crisis eased amid speculation that China
might support Europe, eroding the demand for the yellow metal as a safe haven asset.
Currencies
1.1580 1.5810 1.3800
1.1547 1.5784 1.3745
1.1514 1.5758 1.3690
1.1481 1.5731
1.3635
1.1448 1.5705
1.3580
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% lower against the USD at $1.5756, trading flat against the EUR at €1.1471, and
0.1% lower against the JPY at ¥120.84.
The EUR is trading 0.1% lower against the USD at $1.3738, following reports that Spain would sell as much as €4.0 billion of
bonds at its auction today. The EUR is trading 0.1% lower against the JPY at ¥105.35.
The AUD is trading lower against the USD after the statistics bureau’s new methodology for calculating seasonally adjusted
inflation indicated that the Reserve Bank of Australia’s core measures might have been lower last quarter.
The NZD is trading higher against the USD, after New Zealand’s central bank kept interest rates unchanged and stated that it
would not raise interest rates until the global recovery strengthens.
Yesterday, the GBP ended weak against the USD after a report showed that jobless-benefit claims increased last month,
boosting speculation that central-bank might consider asset purchases to revive economic growth.
The EUR ended higher against the USD, after leaders of France, Germany and Greece agreed that Greece would remain in the
eurozone, easing investors concerns about European debt crisis.
The AUD closed lower against the USD, on speculation that Australia’s Central Bank would not increase interest rates.
The CAD ended lower against the USD, as oil and copper prices dropped decreasing the demand for the commodity linked
currency.
2 From The Floor Refer to the last page for disclaimer
3. 15 September 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 Retail Sales (MoM) (Aug) -0.20% 0.20% Monthly
UK 9:30 Retail Sales (YoY) (Aug) -0.20% -0.20% Monthly
UK 9:30 Retail Sales w/Auto Fuel (MoM) (Aug) -0.30% 0.20% Monthly
Eurozone 9:00 ECB Publishes Sept. Monthly Report - - -
Eurozone 10:00 Consumer Price Index (MoM) (Aug) 0.20% -0.60% Monthly
Eurozone 10:00 Employment Change (QoQ) (Q2) 0.20% 0.10% Quarterly
Switzerland 8:15 Industrial Production (QoQ) (Q2) 3.00% -9.20% Quarterly
Switzerland 8:30 SNB 3-Month Libor Target Rate 0.00% 0.00% Quarterly
US 13:30 Consumer Price Index (MoM) (Aug) 0.20% 0.50% Monthly
US 13:30 Consumer Price Index (YoY) (Aug) 3.60% 3.60% Monthly
US 13:30 Consumer Price Index Core Index s.a. (Aug) - 225.46 Monthly
US 13:30 Consumer Price Index n.s.a. (Aug) 226.27 225.92 Monthly
US 13:30 Current Account Balance (Q2) -$122.90 bn -$119.30 bn Quarterly
US 13:30 NY Empire State Manufacturing Index (Sep) -4.00 -7.72 Monthly
US 13:30 Initial Jobless Claims (W/E) 411.00 K 414.00 K Weekly
US 13:30 Continuing Jobless Claims (W/E) 3705.0 K 3717.0 K Weekly
US 14:15 Industrial Production (MoM) (Aug) 0.10% 0.90% Monthly
US 14:15 Capacity Utilisation (Aug) 77.50% 77.50% Monthly
US 15:30 EIA Natural Gas Storage Change (W/E) - 64.00 BCF Weekly
Canada 13:30 Manufacturing Shipments (MoM) (Jul) 1.50% -1.50% Monthly
Canada 13:30 New Motor Vehicle Sales (MoM) (Sep) - 10.80% Monthly
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 45.00
UK 0.7% 4.4% 2.4%
US 1.6% 3.6% 2.1% 22.50
Japan -1.0% 0.2% 1.0%
0.00
France 0.9% 1.9% 3.4%
Germany 2.7% 2.4% 3.3%
-22.50
Brazil 4.2% 6.9% 4.0%
Russia 3.4% 9.0% 6.0% -45.00
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-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. 15 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)
Kingfisher Plc Interim GBP 23.39 10,862.40
Kier Group Plc Prelim GBP 131.20 2,169.11
Dunelm Group Plc Prelim GBP 32.60 590.59
Brightside Group Plc Interim GBP 2.70 78.80
Centaur Media Plc Prelim GBP 4.27 67.57
Kiotech International Interim GBP 8.40 21.00
Note: All Estimates are for Full Year
Kesa Electricals, Booker Group, Investec
Anite, Best of the Best, Braveheart Investment Group, Downing Absolute Income VCT 2, Games Workshop Group,
Kesa Electricals, Probability, Prosperity Russia Domestic Fund Ltd., ReNeuron Group
Robert Wiseman Dairies
Anglo American, Matrix Income & Growth VCT, Spirent Communications, Canaccord Financial Inc., Canadian General
Investments Ltd
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)
BKW FMB Energie Ag H1 CHF 4.03 2,905.63
Heurtey Petrochem Sa Q2 EUR 2.22 305.10
Vet Affaires Sa Q2 EUR 3.66 161.25
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
AAR Corp Q1 USD 2.19 1,950.00 U
Diamond Foods Inc Q4 USD 3.10 1,870.00 A
Pier 1 Imports Inc Q2 USD 0.81 1,510.00 D
The Marcus Corp Q1 USD 0.65 398.39 U
China Botanic Pharmaceutical Inc Q3 USD 0.41 73.43 U
Note: All Estimates are for Full Year
4 From The Floor Refer to the last page for disclaimer
5. 15 September 2011
What’s Hot & What’s Not
Imperial Tobacco Group -2.0%
6.3% Next
6.1% Intercontinental Hotels Group Land Securities Group -1.8%
Lonmin -1.6%
5.6% Burberry Group
5.3% Lloyds Banking Group British Land Co -1.5%
5.1% ITV Standard Chartered -1.0%
Intl Consolidated Airlines Serco Group -0.7%
5.1%
4.9% GKN Hargreaves Lansdown -0.7%
Royal Bank of Scotland Aggreko -0.7%
4.2%
3.7% Carnival Randgold Resources Ltd -0.5%
3.5% BP Rio Tinto -0.5%
0.0% 1.7% 3.4% 5.0% 6.7% -2.4% -1.8% -1.2% -0.6% 0.0%
Major Movers & Shakers
Retailers, Next and Burberry, rallied 6.3% and 5.6%, respectively, after the former reported a rise in its first-half earnings.
Banking stocks, Lloyds Banking Group and RBS, soared 5.3% and 4.2%, respectively, as risk aversion decreased among investors.
BP rose 3.5%, after the company announced two acquisitions.
Imperial Tobacco Group declined 2.0%, after Bank of America trimmed its fourth-quarter earnings estimates.
Land Securities and British Land eased 1.8% and 1.5%, respectively, after Societe Generale downgraded both the stocks to
“Sell” from “Hold”.
Randgold Resources dropped 0.5%, tracking lower gold prices.
Rio Tinto fell 0.5%, in line with a fall in base metal prices.
5 From The Floor Refer to the last page for disclaimer
6. 15 September 2011
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6 From The Floor