CFD Markets News and Forecasts — 18-10-2011

According to preliminary estimates, the developer iPhone, iPad, and iPod, Apple’s earnings for the quarter grew by 57.5% compared to the previous quarter and 342.4% for the year. Positive forecasts relate to the activities of Intel Corp. (INTC), it is expected to increase earnings by 17.3% compared with the previous quarter.

Fed officials remained cautious about economy's prospects. Officials cited caution over stock prices, fiscal uncertainty

While policies to ensure financial stability are now as important as monetary policy, and the latter can be used to support the former. But the Fed will rarely use balance sheet policy 'in more normal times'

European stocks fell as concern that France may lose its top credit rating added pressure on the region’s leaders to find a solution to the debt crisis and as China’s economy grew at the slowest pace in two years. While Group of 20 finance ministers and central bankers are pressing European Union leaders to set out a strategy by the end of the week, divisions are flaring over an emerging plan to avoid a Greek default, bolster banks and curb contagion. China’s economy grew 9.1 percent in the third quarter from a year earlier, the slowest pace since 2009.

National benchmark indexes retreated in 7 of the 18 western European markets. The U.K.’s FTSE 100 dropped 0.4 percent and France’s CAC 40 fell 0.7 percent, while Germany’s DAX advanced 0.5 percent.

BHP Billiton, the world’s biggest mining company, lost 1 percent to 1,891.5 pence, while Rio Tinto, the second-largest, sank 4.2 percent to 3,162 pence. Copper slumped for a second day in London amid concern demand from China may slow as the economy cools. Lead, tin and zinc also fell.

Xstrata Plc retreated 1.3 percent to 936.3 pence even after the largest exporter of power-station coal said total third- quarter production of the fuel rose 8.1 percent. Copper output fell 4 percent, the company said.

BNP Paribas, France’s biggest bank, declined 4.4 percent to 29.69 euros. Societe Generale sank 5.2 percent to 19.19 euros.

France’s Aaa credit rating is under pressure from deterioration in debt metrics and the potential for additional liabilities from Europe’s debt crisis, according to Moody’s. The nation’s financial strength has weakened because of the global economic crisis, making the nation’s debt measures the weakest among its Aaa-rated peers, the New York-based company said in a statement late yesterday that it called a markets update.

Air France-KLM Group slid 2.6 percent to 5.46 euros after the airline ousted Pierre-Henri Gourgeon as chief executive officer amid slumping earnings and questions regarding the role of pilots in a fatal crash.

Aixtron SE, a supplier to the semiconductor industry, sank 5.3 percent to 9.99 euros. The company’s third-quarter results are likely to be “disastrous,” CA Cheuvreux analyst Klaus Ringel wrote in a report.

Danone, the owner of the Evian and Volvic bottled-water brands, rose 2.4 percent to 46.48 euros as three people familiar with the matter said the company is in talks to sell water assets to Japan’s Suntory Holdings Ltd. Danone also reported third-quarter revenue that beat estimates as it sold more baby food and medical nutrition products in China and Indonesia.

Continental AG added 4.4 percent to 53.08 euros, paring yesterday’s declines. The world’s fourth-largest tiremaker said Schaeffler Beteiligungsholding GmbH & Co.’s voting rights rose to 36.14 percent on Sept 30.

-- ECB never acts as a substitute for governments: newspaper interview

-- Financial stability is the responsibility of governments

-- Surveys say euro will deliver price stability over long term

-- EMU has price stability today; inflation expectations firmly anchored

-- Primary goal of price stability is the needle in our compass

-- Strict separation between monetary policy, non-standard measures

-- Trichet rejects assertion that ECB has overstepped its limits

-- Treaty must let us impose rules on EU Stability Pact violators

-- Euro will exist in 10 years

U.S. stocks rose, erasing an early decline, as German Chancellor Angela Merkel said lender recapitalizations will be discussed this weekend and Bank of America Corp. (BAC) rallied as it swung to a third-quarter profit.

Stocks fell earlier as Moody’s Investors Service said France’s Aaa credit rating is under pressure from deterioration in debt metrics and the potential for additional liabilities from the Europe’s debt crisis. Data showed that China’s economy grew 9.1 percent in the third quarter from a year earlier, the slowest pace since 2009.

In the U.S., wholesale prices rose more than forecast in September, boosted by gasoline, food and trucks.

The S&P 500 fell yesterday, after the biggest weekly gain since 2009, as financial shares slumped and the German government damped optimism of a quick fix to Europe’s debt crisis.

Dow 11,461.37 +64.37 +0.56%, Nasdaq 2,629.67 +14.75 +0.56%, S&P 500 1,211.03 +10.17 +0.85%

Financial shares gained the most in the Standard & Poor’s 500 Index among 10 industries, adding 1.7 percent as a group. Bank of America rose 5.7 percent to $6.38. Chief Executive Officer Brian T. Moynihan has presided over a 55 percent drop in the stock this year.

A gauge of homebuilders in S&P indexes jumped 4.4 percent as data showed that industry sentiment increased more than forecast.  Homebuilder Toll Brothers Inc. added 5.4 percent to $15.95, while Lennar Corp. advanced 4.6 percent to $15.24.

IBM slumped 4.7 percent to $177.82. Revenue showed slowing growth in IBM’s software, hardware and services businesses. Chief Executive Officer Sam Palmisano is focusing on areas such as business analytics, emerging markets and cloud computing to boost sales amid sluggish economic expansion.

Market sentiment soured amid renewed worries over sovereign debt crisis in the Eurozone, stubbornly-high inflation in the UK and weaker-than-expected growth in China. Shares in Asia weakened while European bourses opened lower. Commodities fell across the board with oil, gold and base metals sliding on deterioration in market sentiment.

Gold futures fell on 2.4% tо $1636.50 per ounce on the COMEX in New-York.

Crude oil fluctuated as China’s economy grew at the slowest pace in two years and as U.S. stocks rebounded from early decline.

Oil swung between gains and losses after China’s statistics bureau said the economy grew 9.1 percent in the third quarter from a year earlier, the slowest pace since 2009. The Standard & Poor’s 500 Index erased losses as financial shares rallied after better-than-estimated earnings at Bank of America Corp.

Crude for November delivery rose to $87.18 a barrel on the New York Mercantile Exchange. Prices fell as much as 1 percent earlier to $85.55.

Brent oil for December settlement fell 81 cents, or 0.7 percent, to $109.35 a barrel on the London-based ICE Futures Europe exchange.

U.S. and European markets closed heavily down yesterday and Asian markets are off this morning as investors grow increasingly wary about Europe's debt crisis.

U.S. stock-index futures erased losses as financial companies climbed after Bank of America Corp. (BAC) swung to a third-quarter profit.

"Growth may be even softer over the next couple of quarters as tighter financial and credit conditions weigh on economic activity."

Data:

08:30 UK HICP (September) 0.6%

08:30 UK HICP (September) Y/Y 5.2%

08:30 UK HICP ex EFAT (September) Y/Y 3.3%

08:30 UK Retail prices (September) 0.8%

08:30 UK Retail prices (September) Y/Y 5.6%

08:30 UK RPI-X (September) Y/Y 5.7%

09:00 Germany ZEW economic expectations index (October) -48.3

The euro fell for after Moody’s Investors Service said France’s top credit rating is under pressure, adding to concern that European leaders will find it difficult to resolve the region’s debt crisis.

France’s Aaa credit rating is under threat from worsening debt metrics and the potential for additional liabilities from the regional crisis, Moody’s said late yesterday. The nation’s financial strength has weakened because of the global financial crisis, making its debt measures the worst among its Aaa rated peers, Moody’s said.

Currently FTSE 5,377 -59.65 -1.10%, CAC  3,110 -56.20 -1.78%, DAX 5,822 -37.48 -0.64%.

European stocks fell as concern that France may lose its top credit rating added pressure on the region’s leaders to find a solution to the debt crisis and as China’s economy grew at the slowest pace in two years.

Yesterday the euro weakened after German Chancellor Angela Merkel’s spokesman said Europe’s leaders won’t provide the quick resolution to the region’s debt crisis that global policy makers are pushing for at a summit this weekend.

The 17-nation currency retreated from a one-month high against the dollar, following last week’s biggest advance in more than two years.

The pound declined versus the dollar and the yen on concern the Bank of England’s additional stimulus measures won’t be enough to revive growth.

Group of 20 finance ministers and central bankers concluded weekend talks in Paris endorsing parts of the emerging plan to avoid a Greek default, bolster banks and curb contagion. They set the Oct. 23 summit of European leaders in Brussels as the deadline for it to be delivered.

The yen and the dollar strengthened against major currencies as European stocks erased gains.

EUR/USD: yesterday the pair fell.

GBP/USD: yesterday the pair decreased.

USD/JPY: yesterday the pair was under pressure and closed day below Y77.00.

On Tuesday UK data sees the Consumer Price Index for September at 0830GMT. Core-European data leads with the 0900GMT release of the latest ZEW survey. US data  at 1230GMT, producer prices are expected to rise 0.3% in September. A late but lead focus also comes at 1715GMT, when Fed Chairman Ben Bernanke delivers a speech to the Boston Fed Bank conference.

Hang Seng 18,874 +372.20 +2.01%

S&P/ASX 200 4,275 +69.76 +1.66%

Shanghai Composite 2,440 +9.03 +0.37%

FTSE 100 5,437 -29.66 -0.54%

CAC 40 3,166 -51.83 -1.61%

DAX 5,859 -107.77 -1.81%

Dow 11,397.00 -247.49 -2.13%

Nasdaq 2,614.92 -52.93 -1.98%

S&P 500 1,200.86 -23.72 -1.94%

10 Year Yield 2.16% -0.08 --

Oil $86.47 -0.33 -0.38%

Gold $1,672.30 -10.70 -0.64%