CFD Markets News and Forecasts — 25-09-2012

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25.09.2012

19:00

Dow 13,515.46 -43.46 -0.32% Nasdaq 3,139.62 -21.16 -0.67% S&P 500 1,449.75 -7.14 -0.49%

18:15

American focus: the euro rose

The dollar and yen fell against its most traded counterparts as the better-than-expected data on house prices and consumer confidence, demand for refuge assets.

The euro rose against the dollar after the European Central Bank Governing Council member Ewald Nowotny said he does not see the need to cut interest rates further at the moment, as investors had expected. Also increased the probability to provide slop Spain. The shares rose as consumer confidence in the U.S. in September reached a seven-month high.

Also today, after the Spanish auction three-month yield bonds rose to the level of 1.203%, compared with 0.946% at the previous auction, which took place on August 28.

The data also showed that the index of German and French business confidence remained unchanged, while in Italy the figure fell to 15-year low.

The dollar index, which tracks the dollar against the currencies of six trading partners, the U.S., fell 0.1% to 79.408.

Canadian dollar rose after the retail sales rose in July, more than economists forecast, while showing the largest increase in new car sales in January.

17:25

European stocks close:

European stocks advanced as U.S. home prices and consumer confidence increased more than forecast, adding to signs the world’s largest economy is strengthening.

Lonza (LONN) Group AG rose 3 percent amid reports of takeover speculation. Weir Group (WEIR) Plc climbed 4.4 percent as analysts said General Electric Co. may be interested in buying the mining- equipment maker. Continental AG (CON) sank 4 percent as Schaeffler AG sold a 10.4 percent stake in the tire producer. Infineon Technologies AG (IFX) slid 6.3 percent after Europe’s second-biggest semiconductor maker forecast a decline in revenue.

The Stoxx Europe 600 Index (SXXP) added 0.4 percent to 275.82

National benchmark indexes rose in 11 of the 18 western European markets.

FTSE 100 5,863.14 +24.30 +0.42% CAC 40 3,513.64 +16.42 +0.47% DAX 7,423.66 +10.50 +0.14%

Lonza, which produces chemicals and biotechnology products, jumped 3 percent to 51.10 Swiss francs. The Guardian and the Daily Mail reported that BASF SE and Saudi Basic Industries Corp. may be interested in buying the Swiss company, citing speculation among traders.

Weir Group climbed 4.4 percent to 1,817 pence, rising for the first time in four days. Analysts at Oriel Securities Ltd. and Investec Ltd. said GE will probably be drawn to Weir as the U.S. company looks to build its mining-equipment division through acquisitions.

Suedzucker AG (SZU) gained 3.2 percent to 28.49 euros after the world’s largest sugar producer boosted its earnings forecast for the year.

Daily Mail & General Trust Plc (DMGT) climbed 1.7 percent to 498.5 pence as the publisher of the U.K.’s Daily Mail and Mail on Sunday newspapers said full-year results will be in line with analysts’ forecasts.

A gauge of auto-industry shares dropped 1.5 percent for the biggest decline among the 19 industry groups in the Stoxx 600 as Goldman Sachs Group Inc. cut its profit estimates for Daimler AG (DAI), Volkswagen AG (VOW) and Bayerische Motoren Werke AG. (BMW)

Daimler fell 1.5 percent to 39.51 euros, VW lost 1.8 percent to 152.15 euros and BMW slid 1.4 percent to 58.79 euros.

Infineon tumbled 6.3 percent to 5.1 euros, the biggest retreat in nearly three months. The company predicted sales in the three months through December will decline as much as 10 percent from the previous quarter as clients cut spending amid the economic slowdown.

Telekom Austria AG (TKA), the phone company partly controlled by Carlos Slim’s America Movil SAB, plunged 7.2 percent to 5.70 euros, the lowest price since April 2001. The Vienna-based company cut its dividend forecast for this year to 0.05 euros a share from 0.38 euros.

Georg Fischer AG slumped 6.1 percent to 348.25 francs, its largest drop in four months. Vontobel Holding AG trimmed its recommendation on Europe’s biggest maker of iron castings for cars to reduce from buy.

17:01

Philadelphia Fed President Plosser: Was against September's Fed decision

Deferred policy tightening may destabilize inflation expectations
This decline in confidence could damage the Fed's ability to conduct an effective policy
The new bond purchase program could undermine the credibility of the Fed
Purchase of assets is unlikely to benefit greatly
Gradual decline in rates is unlikely to foster an economic growth
Costs and risks outweigh the positive effects of QE3
Further easing of Fed policy was inappropriate, it is unlikely to be effective
I expect that the U.S. will be able to avoid the worst scenarios of budget break
Recovery time from soft policy may occur much earlier than mid 2015
Europe continues to pose a significant uncertainty
Current policy generates long-term inflation risks
In the future, the policy should be more stringent than they are now waiting for the Fed
In the medium to long term, inflation is expected to reach 2%
Monetary policy can do little to spur job creation
Prospects for the labor market will improve only gradually
The rate of job growth was not strong enough to affect the unemployment rate this year
There are encouraging signs of improvement in the housing market
Consumers are unlikely to significantly increase the cost savings in the recovery
In 2013 and 2014, economic growth is likely to be around 3%
Economic growth for the year as a whole is likely to be 2%

16:00

European stocks close in plus: FTSE 100 5,863.14 +24.30 +0.42% CAC 40 3,513.64 +16.42 +0.47% DAX 7,423.66 +10.50 +0.14%

15:41

Oil prices rose

Oil rose in New York after falling five out of the past six days as U.S. home prices climbed more than forecast in July, signaling that the economy of the world’s biggest crude-consuming country is rebounding.

Futures advanced as the S&P/Case- Shiller index of property values in 20 cities increased 1.2 percent from July 2011, the biggest 12-month advance since August 2010. The median forecast of economists called for a 1.05 percent gain. The Conference Board’s index of consumer confidence probably increased to 63.2 in September from 60.6 in August, a separate poll showed.

Prices also rose after Fars, Iran’s state-run news agency, reported that Iran fired four missiles in the Persian Gulf as part of a war game. Iranian President Mahmoud Ahmadinejad said in a U.S. television interview yesterday that his nation will defend itself if attacked by Israel.

The Guards will hold a military exercise in the Strait of Hormuz before the end of the Iranian calendar year on March 20.

U.S. crude supplies probably rose last week for the longest run of increases since May, according to a Bloomberg survey before an Energy Department report tomorrow. The American Petroleum Institute will release separate inventory data today.

October futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) on the NYMEX is now $ 92.67 per barrel.

November futures price of North Sea Brent crude oil mix is now $ 111.04 a barrel on the ICE Futures Europe Exchange.

15:21

Gold traded above $ 1770 an ounce

Gold prices rose back above $1,770 an ounce on Tuesday as the euro hit session highs versus the dollar, and following data that showed central banks added to their bullion holdings in July and August, led by South Korea and Paraguay.

The metal has risen nearly 5 percent so far in September and is set for a fourth straight monthly gain on expectations the Federal Reserve will keep credit flowing through the U.S. economy and interest rates low by buying government bonds.

In the shorter term, gold took support from a recovery in the euro, which swung higher against the dollar in early afternoon trade and extended gains after data showed U.S. house prices rose less than expected in July. European shares also moved in positive territory, while other commodities, like crude oil and industrial metals, rose.

Data from the International Monetary Fund on Tuesday showed South Korea raised its holdings of gold by nearly 16 metric tonnes (17.63 tons) in July, along with Paraguay, which raised its reserves in July from a few thousand ounces to more than 8 tonnes, continuing the trend among central banks to hold more bullion.

According to the IMF's international finance statistics report, South Korea added 15.988 tonnes of gold to bring its holdings to 70.44 tonnes in July, meaning it has doubled its bullion reserves in the space of a year after being one of the largest purchasers of gold in 2011.

Paraguay raised its holdings by 7.527 tonnes to 8.194 tonnes two months ago, while Venezuela cut its holdings by 3.733 tonnes to 362.053 tonnes in that month.

So far this year, central banks have added a net 262.1 tonnes to their reserves, compared with 203.39 tonnes in the first eight months of 2011.

Turkey has added the most to its holdings, having raised its reserves by 100.2 tonnes in the first eight months of the year, followed by Russia, which has added 53.75 tonnes.

Private investors have also added to their holdings of gold through exchange-traded funds backed by physical metal, which now hold a record 74.06 million ounces.

October futures price of gold on the COMEX is now 1772.50 dollars per ounce.