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Analytics, News, and Forecasts for CFD Markets: stock news — 13-09-2012.
European stocks fell from the highest level in 14 months as investors awaited a Federal Reserve decision on further stimulus measures.
European Aeronautic, Defence & Space Co. (EAD) and BAE (BA) Systems Plc slid more than 7 percent as Barclays Plc recommended investors trim their holdings in the companies in the short term, as they plan a merger. Zodiac Aerospace rose 2.1 percent after Societe Generale SA upgraded its rating on the stock.
The Stoxx Europe 600 Index slipped 0.2 percent to 272.42 at the close of trading, paring losses of as much as 0.6 percent. The gauge rose to its highest level since July 2011 yesterday after Germany’s top constitutional court cleared the way for ratification of the euro area’s permanent bailout fund.
EADS slid 10 percent to 25.15 euros. The company said yesterday it has entered talks for a merger with BAE to build an equal to Boeing Co. (BA) that would balance civil and defense operations. Deutsche Bank AG downgraded the stock to hold from buy.
BAE lost 7.3 percent to 337.1 pence. Europe’s biggest arms maker was cut to hold from buy at
Barclays advised investors to trim their exposure to EADS and take profits in BAE because of the potential for near-term challenges in the deal closure process. Barclays kept its overweight recommendation, similar to a buy, on both companies, reflecting long-term prospects.
National benchmark indexes fell in 11 of the 18 western- European (SXXP) markets.
FTSE 100 5,819.92 +37.84 +0.65% CAC 40 3,502.09 -41.70 -1.18% DAX 7,310.32 -33.21 -0.45%
Next Plc (NXT) slumped 7.2 percent to 3,320 pence after the U.K.’s second-largest clothing retailer said sales in August and early September were “disappointing,” paring growth for the year to date.
Imagination Technologies Group Plc. (IMG) tumbled 7.2 percent to 566 pence after saying first-quarter royalty revenue growth was in line with expectations, while royalty rates decreased slightly because of higher volumes in low-end smartphones.
Numis Securities downgraded its recommendation on the U.K. chip designer for mobile applications to hold from buy, with a price forecast of 590 pence per share.
Debenhams Plc (DEB), the U.K. department-store operator, slid 1.8 percent to 98.25 pence.
Home Retail Group Plc (HOME), an operator of home and general-merchandise retail stores, retreated 4.6 percent to 94.85 pence. A gauge of retailers was among the worst performers of the 19 industry groups on the Stoxx Europe 600 Index.
Vinci SA (DG), Europe’s biggest builder, fell 3.6 percent to 35.46 euros after Bank of America Corp. cut its recommendation on the shares to neutral from buy. A gauge of construction companies made the biggest contribution to the Stoxx 600’s decline today.
Vestas Wind Systems A/S (VWS), the world’s largest wind turbine maker, plunged 13 percent to 34.55 kroner. The company is considering selling shares to existing investors if talks on a strategic cooperation with Mitsubishi Heavy Industries Ltd. fail, two people familiar with the matter said.
Zodiac Aerospace (ZC), which manufactures and sells aeronautical equipment including weapons systems, added 2.1 percent to 79.60 euros after Societe Generale upgraded its recommendation on the shares to hold from sell.
WPP Plc (WPP), the world’s biggest advertising agency, rose 1.3 percent to 848 pence after the shares were raised to hold from underperform at Jefferies Group Inc.
Lonza Group AG (LONN) gained 4.9 percent to 49.32 Swiss francs. The Swiss specialty-chemical maker sold 305 million francs ($324 million) of bonds to refinance a bridge loan used for its acquisition of Arch Chemicals Inc. in October 2011.
Julius Baer Group Ltd. (BAER) advanced 2.9 percent to 33.49 francs. Chief Executive Officer Boris Collardi said he was “confident on the cost-cutting side” at the Asian wealth- management business it bought from Bank of America Corp
U.S. stock futures slightly fell as investors await the Federal Reserve announcement that may initiate a new round of bond buying.
Global Stocks:
Nikkei 8,995.15 +35.19 +0.39%
Hang Seng 20,047.63 -27.76 -0.14%
Shanghai Composite 2,110.38 -16.18 -0.76%
FTSE 5,793.27 +11.19 +0.19%
CAC 3,514.89 -28.90 -0.82%
DAX 7,320.97 -22.56 -0.31%
Crude oil $97.48 +0,48%
Gold $1735.80 +0.12%
Microsoft (MSFT) initiated with a Hold at Jefferies
Intel (INTC) downgraded to Neutral from Buy at Citigroup
European stocks fell after reaching a 14-month high yesterday, as investors awaited a Federal Reserve policy meeting that may include an announcement of further stimulus measures.
The Fed is likely today to announce another round of bond purchases, according to almost two-thirds of economists in a Bloomberg survey. The previous two series of quantitative easing totaling $2.3 trillion have failed to revive the labor market, which Fed Chairman Ben S. Bernanke said last month is a “grave concern.”
EADS slid 5.5 percent to 26.47 euros. The company said yesterday it has entered talks for a tie-up with BAE to build an equal to Boeing Co. that would balance civil and defense operations. Deutsche Bank AG downgraded the stock to hold from buy.
BAE lost 5.3 percent to 344.2 pence. Europe’s biggest arms maker was downgraded to hold from buy at Oriel Securities Ltd.
Barclays advised investors to trim their exposure to EADS and take profits in BAE given the potential for near-term challenges in the deal closure process.
FTSE 100 5,781.95 -0.13 0.00%
CAC 40 3,521.77 -22.02 -0.62%
DAX 7,319.53 -24.00 -0.33%
Asian stocks swung between gains and losses as investors await a U.S. Federal Reserve’s policy announcement and after a Chinese newspaper commentary said massive stimulus measures would be “detrimental” to the nation’s sustainable growth.
Nikkei 225 8,995.15 +35.19 +0.39%
S&P/ASX 200 4,339.4 -21.85 -0.50%
Shanghai Composite 2,125.68 -0.87 -0.04%
James Hardie Industries SE, a building-materials supplier that gets 67 percent of sales from the U.S. rose 1.5 percent.
Bank of Communications Co. slid 1.4 percent in Hong Kong.
Kansai Electric Power Co. and Kyushu Electric Power Co. advanced on a report the utilities are considering a rate increase.
TDK Corp., a battery supplier to Apple Inc., climbed 4.4 percent in Tokyo after the iPhone 5 was unveiled.
Asian stocks rose, with the regional benchmark index headed for the longest winning streak in two months, on speculation China and the U.S. will take more measures to spur growth in the world’s two biggest economies.
Nikkei 225 8,959.96 +152.58 +1.73%
S&P/ASX 200 4,361.3 +35.51 +0.82%
Shanghai Composite 2,120.3 -0.25 -0.01%
Electronics maker Samsung Electronics Co., which gets 48 percent of its revenue in China and the Americas, rose 3 percent in Seoul.
Fanuc Corp., the world’s biggest maker of industrial robots, gained 2.2 percent after Japan’s machinery orders beat estimates in July.
China Eastern Airlines Corp., the nation’s second-largest carrier by passengers, climbed 3.5 percent in Hong Kong after announcing plans to raise $570 million.
European stocks advanced to a 14- month high after Germany’s top constitutional court cleared the way for the ratification of the euro area’s permanent bailout fund.
BAE Systems jumped the most in nine years after the company began talks with European Aeronautic, Defence & Space Co., for a possible combination. Barratt Developments Plc (BDEV) lost 6.6 percent after the housebuilder said it won’t pay an annual dividend.
The Stoxx Europe 600 Index (SXXP) rose 0.1 percent to 272.91 at 4:30 p.m. in London, the highest close since July 8 last year.
The Stoxx 600 climbed in late afternoon trading yesterday as speculation grew that the U.S. Federal Reserve will boost stimulus. The gauge last week surged the most since June as European Central Bank policy makers agreed to an unlimited bond- buying plan to help lower borrowing costs in the region.
The Federal Constitutional Court in Karlsruhe today dismissed motions filed by groups including an opposition political party that sought to halt German ratification of the 500 billion-euro ($640 billion) fund, known as the European Stability Mechanism, and a deficit-control treaty championed by Chancellor Angela Merkel.
The court stipulated that Germany set a cap of about 190 billion euros on its liabilities before ratifying the ESM, unless parliament decides to back extra funds.
BAE jumped 10.6 percent to 363.6 pence, the biggest increase since January 2003. The talks with EADS are at an advanced stage and the two companies are exploring a transaction that would allow London-based BAE to maintain its independence to sell into the U.S. defense market, said one of the people, who asked not to be identified because the talks are private.
Commerzbank, Germany’s second-largest lender, rallied 7.2 percent to 1.58 euros as a gauge of European banks added 1.3 percent, the biggest advance among the 19 industry groups on the Stoxx 600. France’s Natixis (KN) SA jumped 6.4 percent to 2.65 euros, while Credit Agricole SA (ACA) advanced 6 percent to 5.90 euros.
ING, the largest Dutch financial-services firm, rose 1.9 percent to 6.79 euros. AXA SA (CS) climbed 2 percent to 12.78 euros and Allianz SE (ALV), Europe’s largest insurer, added 1.2 percent to 95.05 euros.
Investors also awaited the outcome of the Fed’s two-day policy meeting tomorrow amid expectations that the central bank will announce a third round of so-called quantitative easing to help support growth, according to almost two-thirds of economists in a Bloomberg survey.
National benchmark indexes rose in 14 of the 18 western European markets.
FTSE 100 5,782.08 -10.11 -0.17% CAC 40 3,543.79 +6.49 +0.18% DAX 7,343.53 +33.42 +0.46%
Vestas (VWS) dropped 8.9 percent to 39.90 kroner, extending yesterday’s 6.1 percent decline. Sanford C. Bernstein & Co. downgraded the company to underperform, the equivalent of a sell rating, from market-perform.
Barratt Developments lost 6.6 percent to 158.5 pence after the U.K.’s largest housebuilder by volume refrained from paying a dividend. The company was expected to pay investors 0.7 pence a share. Barratt last paid a dividend in 2008.
The shares fell even after the company posted its first full-year profit since 2008 of 67.4 million pounds ($109 million) compared with a loss of 13.8 million pounds a year earlier. The shares have surged 71 percent so far this year.
Lonmin Plc (LMI) dropped 6.3 percent to 572.5 pence after the mining company’s workers refused to return to their jobs and begin wage talks. A strike entered its second month at Lonmin’s Marikana operation, which accounts for about 10 percent of global platinum production.
Novo Nordisk A/S (NOVOB) declined 3.2 percent to 896 kroner as Natixis SA reduced its recommendation for the world’s largest insulin maker to neutral from buy.
Major U.S. stock indexes during trading showed mixed results, but still managed to finish the session a slight increase
At the beginning of today's session, support the growth index has positive market sentiment amid reports of constitutional recognition of Germany's participation in the European Stabilization Mechanism (ESM) by the Constitutional Court of the country. However, the decision was made to a number of conditions. The German Constitutional Court ruled that the German contribution to the ESM should not exceed 190 billion euros. More - with the consent of the Bundestag lower house.
However, the growth index was restrained on expectations of market participants is the outcome of today's meeting starting Open Market Committee Federal Reserve. The Bloomberg survey shows that the majority of economists (two-thirds) are awaiting a decision on the third round of QE to begin today meeting of the Federal Open Market.
It is also expected that there will be a decision to hold the federal funds rate to near zero level by 2015.
Announcement of the upcoming meeting will be held tomorrow.
In the composition of the index DOW most components declined. The greatest show shares minus E. I. du Pont de Nemours and Company (DD, -1,9%) and Bank of America Corporation (BAC, -1,00%). More than others in the share price rose Verizon Communications Inc. (VZ, +1.38%) and General Electric Company (GE, +1.16%).
Most of the major economic sectors are growing. The leader is the sector of industrial goods (+0.7%). The biggest minus demonstrates sector utilities (-1.1%).
At the close:
Dow 13,333.66 +10.30 +0.08%
Nasdaq 3,114.31 +9.78 +0.32%
S & P 500 1,436.58 +3.02 +0.21%
Change % Change Last
Nikkei 225 8,959.96 +152.58 +1.73%
S&P/ASX 200 4,361.3 +35.51 +0.82%
Shanghai Composite 2,120.3 -0.25 -0.01%
FTSE 100 5,782.08 -10.11 -0.17%
CAC 40 3,543.79 +6.49 +0.18%
DAX 7,343.53 +33.42 +0.46%
Dow 13,333.66 +10.30 +0.08%
Nasdaq 3,114.31 +9.78 +0.32%
S&P 500 1,436.58 +3.02 +0.21%
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