Analytics, News, and Forecasts for CFD Markets: stock news — 05-12-2014.

Stock indices closed higher on the better-than-expected U.S. nonfarm payrolls. The U.S. economy added 321,000 jobs in November, exceeding expectations for a rise of 225,000 jobs, after a gain of 243,000 jobs in October. October's figure was revised up from a rise of 214,000 jobs.

The U.S. unemployment rate remained unchanged at 5.8% in November, in line with expectations.

Investors also speculate that the European Central Bank (ECB) will add further stimulus measures. The ECB President Mario Draghi pointed out yesterday that the central bank had discussed various options of quantitative easing (QE). He said that the central bank will decide early next year whether to add further stimulus measures to boost inflation in the Eurozone.

Eurozone's revised gross domestic product (GDP) rose 0.2% in third quarter, in line with expectations and matching an initial estimate.

On a yearly basis, Eurozone's revised gross domestic product (GDP) increased 0.8% in third quarter, in line with expectations and matching an initial estimate.

German factory orders climbed 2.5% in October, exceeding expectations for a 0.6% rise, after a 1.1% increase. September's figure was revised up from a 0.8% gain.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,742.84 +63.47 +0.95%

DAX 10,087.12 +235.77 +2.39%

CAC 40 4,419.48 +95.59 +2.21%

U.S. stock-index futures fluctuated as investors speculated that better-than-estimated payrolls data bolstered the case for higher interest rates.

Global markets:

Nikkei 17,920.45 +33.24 +0.19%

Hang Seng 24,002.64 +170.08 +0.71%

Shanghai Composite 2,938.78 +39.32 +1.36%

FTSE 6,742.9 +63.53 +0.95%

CAC 4,399.25 +75.36 +1.74%

DAX 10,016.42 +165.07 +1.68%

Crude oil $66.58 (-0.36%)

Gold $1189.40 (-1.51%)

(company / ticker / price / change, % / volume)

Upgrades:

Yahoo! (YHOO) upgraded to Buy from Neutral at BofA/Merrill

Downgrades:

Google (GOOG) downgraded to Neutral from Buy at BofA/Merrill

Other:

Starbucks (SBUX) target raised to $89 from $82 at JP Morgan

European indices are trading stronger today rebounding from yesterday's significant losses on upbeat German factory orders ahead of U.S. job data published at 13:30GMT. German factory orders adjusted for seasonal swings and inflation beat expectations, a sign of recovery of the Eurozone's largest economy. Factory orders rose +2.5% in October, a plus of +1.4% compared with September. Eurozone's GDP for the third quarter was in line with expectations according to Eurostat and unchanged to the previous quarter reading +0.2%. European indices had weakened yesterday after Mario Draghi's speech as he did not announce further stimulus measures. The ECB revised down its forecast for economic growth and inflation for the Eurozone through 2016.

The FTSE 100 index gained +0.56% quoted at 6,716.75 points. France's CAC 40 added +1.26% trading at 4,378.21 and Germany's DAX 30 gained +1.27% trading at 9,976.33 points.

European stocks are trading stronger recouping some of yesterday's losses after the ECB did not announce immediate monetary policy action. Inflation forecast for the Eurozone was lowered to 0.5% in 2014 from the previous estimate of 0.6%, to 0.7% in 2015 from the previous estimate 1.1% and to 1.3% in 2016 from the previous estimate 1.4%.

The ECB also cut its economic growth forecast for the Eurozone through 2016. The growth was lowered to 0.8% 2014 the previous estimate of 0.9%, to 1.0% in 2015 from the previous estimate of 1.6% and to 1.5% in 2016 from the previous estimate of 1.9%. The ECB warned that new inflation forecasts did not take into account the recent decline in oil prices.

German factory orders adjusted for seasonal swings and inflation beat expectations, a sign of recovery of the Eurozone's largest economy. Factory orders rose +2.5% in October, a plus of +1.4% compared with September. Analyst's forecasted an increase of +0.6%. Markets are now awaiting U.S. Nonfarm Payrolls and the Unemployment Rate being published at 13:30 GMT, average earnings and factory orders and Eurozone's GDP earlier in the session at 10:00 GMT.

The FTSE 100 index is currently trading +1.03% quoted at 6,731.94 points, Germany's DAX 30 added +1.25% at 9,974.50, just below the important 10,000 points level. France's CAC 40 gained +1.21%, currently trading at 4,376.98 points.

U.S. markets closed slightly lower posting small loses after the ECB did not announce immediate monetary policy action. Traders are looking ahead to non-farm payrolls and the unemployment rate due before the markets open. The DOW JONES lost -0.07% closing at 17,900.10 points and the S&P 500 declined -0.12 with a final quote of 2,071.92 points.

Hong Kong's Hang Seng is trading +0.95% at 24,060.06. China's Shanghai Composite closed at 2,938.78 points, a gain of +1.36% after very volatile trading. The index rallied 21% over the last month and 9.5% this week.

Japan's Nikkei extended a seven-year high, gaining +0.19% closing at 17,920.45, as the yen continued to weaken trading above USD120 supporting export stocks.