1. From The Floor
27 October 2011
Key Global Indices
UK Market Snapshot
Last 1D % 5D % 1M% 1Y%
Cl ose Chg Chg Chg Chg UK markets closed mixed yesterday, with the FTSE 100 index ending
FTSE 100 5,553.2 0.5% 1.9% 9.1% -2.7% modestly higher amid expectation that European policymakers would
DJSTOXX 50 2,289.1 0.3% 1.3% 9.3% -10.2% present a specific plan to contain the region’s debt crisis. Among precious
FTSEurofirst 300 983.8 0.1% 1.6% 9.6% -9.7% metal stocks, Fresnillo, the top gainer on the FTSE 100 index, rose 4.4%,
German DAX 30 6,016.1 -0.5% 1.7% 12.5% -9.0%
while Randgold Resources climbed 2.5%, as gold and silver prices rallied.
French CAC 40 3,169.6 -0.1% 0.4% 10.9% -17.7%
Antofagasta climbed 2.1%, tracking a rise in copper prices. Kazakhmys
Russia RTS Index 1,530.1 2.0% 6.4% 16.3% -4.9%
S&P 500 1,242.0 1.1% 2.7% 6.8% 4.8%
gained 1.1%, amid optimism, ahead of its interim results. British American
Dow Jones Industrials 11,869.0 1.4% 3.2% 7.5% 6.3%
Tobacco gained 1.5%, after its revenue increased 7% year-on-year in the first
Nasdaq Composite 2,650.7 0.5% 1.8% 5.3% 6.1% nine months of 2011.However, banking stocks, Barclays, Royal Bank of
Brazil Bovespa 57,143.8 1.5% 4.0% 6.3% -19.2% Scotland and Lloyds Banking Group retreated between 0.8% and 2.1%,
Nikkei 225* 8,849.0 1.1% -0.3% 4.5% -6.7% following disappointing results from their Spanish peer, BBVA. Reckitt
Shanghai Composite* 2,436.8 0.4% 2.1% 1.4% -20.2% Benckiser lost 2.1%, following downgrade by various brokers. FTSE 100 rose
Sensex 17,288.8 0.0% 1.2% 7.7% -14.5% 0.5% to close at 5,553.2,while FTSE 250 lost 0.1% to settle at 10,422.4.
*Time - BST 5:18:04 AM
European Market Snapshot
5,575 Other European markets ended mostly lower yesterday, amid uncertainty
over the European leaders’ plan to tackle the sovereign-debt crisis, ahead of
5,558 the crucial EU summit, and following a slew of broker downgrades. However
losses were limited following better-than-expected US durable-goods orders
5,540 and home sales data. Banking stocks, UniCredit, BNP Paribas and
Commerzbank, slid between 0.9% and 2.5%, as risk appetite decreased
5,523 among investors. Adidas eased 3.0%, after Morgan Stanley downgraded the
stock to “Equal weight” from “Overweight”. Areva, slid 3.2%, after the
5,505 company stated that its FBFC International subsidiary might close its nuclear
8:00 9:45 11:30 13:15 15:00 16:35
fuel fabrication site in Dessel, Belgium, while, pharmaceutical stock, Merck
rallied 8.5%, after the company’s third-quarter earnings surpassed market
expectations. FTSEurofirst 300 index added 0.1% to 983.8. German DAX
11,900
Xetra 30 fell 0.5% to 6,016.1. French CAC-40 edged down 0.1% to 3,169.6.
11,845 US Market Snapshot
US markets rebounded yesterday, closing higher, as Europe agreed on plans
11,790
to recapitalize banks and after US economic reports exceeded market
expectations. Furthermore, speculation of a possible Chinese investment in
11,735
the euro-zone bailout fund also boosted market sentiment. Petroleum
refiner and marketer, Valero Energy, the top gainer on the S&P 500 index,
11,680
9:30 10:45 12:00 13:15 14:30 15:45 surged 15.2%, amid reports that it could be takeover bid for Royal Dutch
Shell and Reliance Industries. F5 Networks surged 14.1%, following a 40.0%
rise in its fourth-quarter profit. IBM edged up 0.9%, following news that its
global sales chief Virginia Rometty would succeed Sam Palmisano as CEO in
8,860
January next year. Boeing climbed 4.5%, and emerged as the top gainer on
the DJIA index, as it raised its full year earnings outlook. DJIA surged 1.4% to
8,828
11,869.0. NASDAQ edged up 0.5% to 2,650.7. S&P 500 rose 1.1% to 1,242.0.
8,795
Asian Market Snapshot
8,763
Asian markets are trading higher this morning, tracking overnight gains on
Wall Street, following report that European leaders would approve an
8,730
9:00 9:45 10:30 11:15
agreement with banks on writedown of Greek debt and after French
President Nicolas Sarkozy stated that the region’s bailout fund would be
leveraged by four to five times. In Japan, construction machinery maker,
Manoj Ladwa 0207 392 1487
Komatsu, paced gains, after orders for US durable goods rose higher in
Index and Equity Desk 0207 392 1479
September. Optical-equipment maker, Olympus gained value, after the
Institutional Equities 0207 392 1477 company’s President stepped down amid a scandal over adviser payments.
Commodities 0207 392 1403 Exporters, Honda Motor and Nissan Motor paced gains, as concerns about
Options 0207 392 1472 future demand eased. In Hong Kong, banking stocks, Agricultural Bank of
Currencies 0207 392 1455 China and China Citic Bank traded higher after posting their third-quarter
Internet Dealing Desk 0207 392 1434 earnings that surpassed market expectations. In South Korea, refiners, S-Oil
and SK Innovation gained values, following higher crude oil prices. Nikkei
225 index is trading 1.1% higher, at 8,849.0. Hang Seng index is trading 1.5%
higher at 19,345.5, while the Kospi index is trading 0.9% higher, at 1,911.7.
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. 27 October 2011
Commodities
94.0
1730.0 7,800 2,220
93.0 1722.5 7,550 2,190
$/ M T
$/ b b l
7,300 2,160
$ /OZ
92.0 1715.0
7,050 2,130
91.0
1707.5
6,800 2,100
90.0
0:00 5:30 11:00 16:30 22:40 1700.0 13-Oct 18-Oct 21-Oct 26-Oct
0:00 5:40 11:20 17:00 23:30 Copper - LHS Aluminium - RHS
In Asia, crude oil for December delivery is trading 1.8% or $1.58 higher at $91.78 per barrel. Yesterday, crude oil for December
delivery declined 3.2% or $2.97 to settle at $90.20 per barrel, after the Energy Information Administration reported that crude
supplies rose 4.7 million barrels in the week ended 21 October, surpassing market expectations. Crude oil prices also traded
lower amid uncertainty over a detailed plan to resolve the European debt crisis.
Gold for immediate delivery is trading flat today, at $1,723.68 per ounce. Gold for December delivery added 1.4% or $23.10 to
settle at $1,723.50 per ounce yesterday, amid uncertainty over the ability of European Union leaders to prevent the spread of
region’s sovereign debt crisis.
Currencies
1.1540 1.6050 1.4020
1.1518 1.6008 1.3960
1.1495 1.5965 1.3900
1.1473 1.5923
1.3840
1.1450 1.5880
1.3780
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 0.2% higher against the USD at $1.6009, 0.3% lower against the EUR at €1.1465, and 0.1%
higher against the JPY at ¥121.74.
The EUR is trading 0.6% higher against the USD at $1.3963. The EUR is trading 0.4% higher against the JPY at ¥106.20.
The EUR is trading higher against the USD and the JPY, as European Union leaders announced that they had reached
agreement on a plan to recapitalize the region’s banks, raising demand for risky assets.
The NZD is trading higher against the USD, after the New Zealand’s Reserve Bank Governor, Alan Bollard, highlighted that
borrowing costs might need to be raised.
The CAD is trading higher against the USD and the EUR, following reports that US durable goods orders were stronger than
expected, increasing demand for export linked currency.
Yesterday, the USD ended higher against the EUR and the GBP, amid mounting concern that European leaders would not be
able to come up with a solution to the euro-region debt crisis at a summit in Brussels, after a group of banks announced that
there was no deal with the European Union on restructuring Greek sovereign debt.
The USD ended higher against the JPY, amid speculation of monetary easing by Japan, ahead of the Bank of Japan’s one-day
policy meeting. The AUD closed lower against the USD, amid speculation that the Australian Reserve Bank would cut interest
rates, after a report showed that consumer price growth eased in the third-quarter.
2 From The Floor Refer to the last page for disclaimer
3. 27 October 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 11:00 CBI Reported Sales (Oct) -16.00 -15.00 Monthly
Germany - Consumer Price Index (MoM) (Oct) 0.10% 0.10% Monthly
Germany - Consumer Price Index (YoY) (Oct) 2.50% 2.60% Monthly
Germany - Consumer Price Index - EU Harmonised (YoY) (Oct) 2.80% 2.90% Monthly
Eurozone 9:00 M3 Money Supply (3M) (Sep) 2.60% 2.30% Monthly
Eurozone 9:00 M3 Money Supply (YoY) (Sep) 2.80% 2.80% Monthly
Eurozone 9:00 Business Climate Indicator (Oct) -0.20 -0.06 Monthly
Eurozone 9:00 Consumer Confidence (Oct) -19.90 -19.90 Monthly
Eurozone 9:00 Economic Confidence (Oct) 93.80 95.00 Monthly
Eurozone 9:00 Industrial Confidence (Oct) -7.00 -5.90 Monthly
Eurozone 9:00 Services Confidence (Oct) -1.00 0.00 Monthly
US 13:30 Gross Domestic Product Annualised (Q3) 2.50% 1.30% Quarterly
US 13:30 Gross Domestic Product Price Index (Q3) 2.40% 2.50% Quarterly
US 13:30 Core Personal Consumption Expenditure (QoQ) (Q3) 2.20% 2.30% Quarterly
US 13:30 Continuing Jobless Claims (W/E) 3700.0 K 3719.0 K Weekly
US 13:30 Initial Jobless Claims (W/E) 400.00 K 403.00 K Weekly
US 15:00 Pending Home Sales (YoY) (Sep) 11.80% 13.10% Monthly
Japan - Bank of Japan Rate Decision (Oct 27) 0.10% 0.10% -
Japan 0:50 Large Retailers' Sales (Sep) -3.60%* -2.60% Monthly
Japan 0:50 Retail Trade s.a. (MoM) (Sep) -1.50%* -1.70% Monthly
Japan 0:50 Retail Trade (YoY) (Sep) -1.20%* -2.60% Monthly
Re a l G D P - YoY CP I - YoY 10 Ye a r Bond Yi e l d 0.06
UK 0.7% 5.2% 2.5%
US 1.6% 3.9% 2.2% 0.03
Japan -1.0% 0.2% 1.0%
0.01
France 1.6% 2.2% 3.3%
Germany 2.7% 2.6% 2.1%
-0.01
Brazil 3.1% 7.3% 4.0%
Russia 3.4% 7.2% 6.0% -0.04
Oct-09
Apr-10
Jun-10
Apr-11
Jun-11
Dec-09
Aug-10
Oct-10
Feb-10
Dec-10
Aug-11
Feb-11
India 7.7% 9.0% 8.8%
China 9.1% 6.1% 3.7%
3 From The Floor Refer to the last page for disclaimer
4. 27 October 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)
Royal Dutch Shell Plc Q3 GBP 4.19 453,944.00
AstraZeneca Plc Q3 GBP 7.24 33,546.70
SK Telecom Co Ltd. ADS Q3 USD 2.15 14,846.00
Virgin Media Inc. Q3 GBP 60.74 4,003.97
Note: All Estimates are for Full Year
Croda International, DS Smith, APR Energy, Inchcape, Laird, William Hill, Kewill Plc, Go-Ahead Group
Alumasc Group, Ashmore Group, CPL Resources, Go-Ahead Group, Murgitroyd Group
CPL Resources, Puma VCT III, Puma VCT IV
Oxford Instruments, Penna Consulting
Development Securities, Henry Boot, Inmarsat, International Power, Lighthouse Group, Puma VCT III, Puma VCT IV,
Quarto Group Inc.
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)
Statoil Asa Q3 NOK 17.03 617,801.00
Volkswagen Ag Q3 EUR 19.62 148,706.00
Eni Spa Q3 EUR 2.08 110,210.00
Daimler Ag Q3 EUR 5.31 105,230.00
Norsk Hydro Asa Q3 NOK 2.38 96,163.10
Axa Sa Q3 Sales EUR 2.01 91,625.20
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
Exxon Mobil Corp Q3 USD 8.51 473,500.00 U
Cardinal Health Inc Q1 USD 3.17 106,750.00 U
Procter & Gamble Co Q1 USD 4.21 87,140.00 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. 27 October 2011
What’s Hot & What’s Not
Fresnillo Smiths Group -4.4%
4.4%
3.2% Imperial Tobacco Group Land Securities Group -2.7%
Reckitt Benckiser Group -2.1%
2.7% Shire
2.5% Randgold Resources Ltd Next -2.1%
2.3% Legal and General Group Lloyds Banking Group -2.1%
Meggitt Plc Rolls-Royce Group -2.0%
2.1%
2.1% Burberry Group British Land Co -1.8%
Antofagasta Pearson -1.7%
2.1%
1.9% Wolseley Hargreaves Lansdown -1.5%
1.9% Sage Group G4S -1.5%
0.0% 1.3% 2.5% 3.8% 5.0% -5.0% -3.8% -2.5% -1.3% 0.0%
Major Movers & Shakers
Precious metal stocks, Fresnillo and Randgold resources, rallied 4.4% and 2.5% respectively, tracking higher silver and gold
prices.
Imperial Tobacco Group added 3.2%, after its peer British American Tobacco’s nine-month organic revenue rose 7%.
Shire climbed 2.7%, after Societe Generale upgraded the stock to “Buy” from “Hold”.
Antofagasta advanced 2.1%, in line with a rise in base metal prices.
Smiths Group slumped 4.4%, after going ex-dividend.
Reckitt Benckiser lost 2.1%, after ING Groep cut its recommendation on the stock to “Hold” from “Buy”.
Next fell 2.1%, after Deutsche Bank downgraded the stock to “Hold” from “Buy”.
5 From The Floor Refer to the last page for disclaimer
6. 27 October 2011
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6 From The Floor