Analytics, News, and Forecasts for CFD Markets: stock news — 24-05-2012.

European stocks rebounded from the biggest drop in a month amid concern recent losses are overdone considering the outlook for company earnings.

Stocks rose today even as a report showed European services and manufacturing output contracted more than economists forecast in May. A composite index based on a survey of purchasing managers in both industries fell to 45.9 from 46.7 in April, London-based Markit Economics said. Economists had forecast a drop to 46.6, the median of 14 estimates in a Bloomberg survey showed. A reading below 50 indicates contraction.

German business confidence also declined more than forecast in May. The Munich-based Ifo institute said today its business- climate index, based on a survey of 7,000 executives, slipped to 106.9 from 109.9 in April. Economists had forecast a reading of 109.4.

National benchmark indexes rose in all the western European markets today, except for Iceland and Greece. The U.K.’s FTSE 100 rallied 1.6 percent, Germany’s DAX advanced 0.5 percent and France’s CAC 40 gained 1.2 percent. The Greek ASE Index plunged 4.5 percent to the

Banco Bilbao Vizcaya Argentaria SA (BBVA) rose 2.5 percent to 4.93 euros. Spain’s second-largest lender will take non-binding bids for five portfolios of homes, non-performing loans and consumer loans until May 29, two people with knowledge of the matter said. A spokesman for BBVA declined to comment or disclose the nominal value of the portfolios.

Cable & Wireless Communications jumped 18 percent to 33.01 pence, the biggest gain since 2003. The U.K. based mobile-phone network operator reported earnings before interest, taxes, depreciation and amortization of $901 million, beating analysts’ estimates of $884.5 million, and said it expects similar levels through 2012 and 2013.

U.S. stocks fell, snapping a three- day rally for the Standard & Poor’s 500 Index, after three officials said China’s biggest banks may fall short of loan targets as an economic slowdown crimps demand for credit.

Concern about a Chinese slowdown added to expectations for a worsening in Europe’s debt crisis. In the U.S., data showed companies placed fewer orders for computers, machinery and other capital equipment in April for a second month, indicating manufacturing in the U.S. is cooling.

Technology, industrial and financial shares in the S&P 500 retreated. Bank of America (ВАС) dropped 1.3 percent to $7.08. Caterpillar (САТ) slid 1.3 percent to $91.29.

Tiffany tumbled 7.8 percent to $57. Chief Executive Officer Michael Kowalski said sales in the Americas region “underperformed, continuing a soft trend that began in the last quarter of 2011.” Sales in the first quarter rose 3 percent to $386 million in the Americas and declined 4 percent in the New York flagship store.

NetApp Inc. plunged 14 percent to $28.20. The seller of hardware and software for storing data forecast first-quarter earnings trailing analysts’ estimates amid a weak economic outlook.

Hewlett-Packard (HPQ) jumped 3.1 percent to $21.74. Chief Executive Officer Meg Whitman is cutting jobs and streamlining businesses as the company grapples with slower demand for printers, services and data-center equipment, leading to a third-quarter profit forecast that was less than analysts predicted. The 8 percent workforce reduction, taking place through firings and early retirement offers, will generate annual savings of as much as $3.5 billion starting in 2014.

Dow Chemical Co. rallied 2.6 percent to $31.32. The chemical maker said an arbitration panel ruled that Kuwait must pay $2.16 billion in damages after it canceled a 2008 agreement to buy a stake in the company’s plastics business.

Resistance 3:1363 (May 10-11 high)

Resistance 2:1348/50 (area of May 14-15 high)

Resistance 1:1320 (area of resistance line from May 22)

Current price: 1315,75

Support 1:1300 (area of support line from May 21)

Support 2:1288 (area of May 18 and 21 lows)

Support 3:1280 (MA (200) for D1)

U.S. stock futures rose as a rally in Hewlett-Packard Co. overshadowed a report that showed orders for business equipment dropped for a second month.

Hewlett-Packard climbed more than 8% as the personal-computer maker announced plans to slice its workforce by 27,000 and reported quarterly sales and profit that topped estimates.

Global Stocks:

Nikkei  8,563.38 +6.78 +0.08%

Hang Seng 18,666.4 -119.79 -0.64%

Shanghai Composite 2,350.97 -12.46 -0.53%

FTSE  5,346.13 +79.72 +1.51%

CAC  3,042.41 +39.14 +1.30%

DAX 6,334.89 +49.14 +0.78%

Crude oil $91.14 (+1.38%)

Gold $1571.70 (+1.50%)

Hewlett-Packard (HPQ)’ FQ2 EPS of $0.98 vs cons $0.07. Revenue of $30.69B (-3% Y/Y) vs cons $29.91B. Expects FQ3 EPS of $0.94-$0.97, below $1.02 consensus. Expects FY12 EPS of $4.05-$4.10, above $4.03 consensus. Shares +8.54% premarket

Asian stocks fell as a survey showed China’s manufacturing may shrink for a seventh month and European leaders meeting in Brussels clashed over how to fight the region’s debt crisis.

Nikkei 225 8,563.38 +6.78 +0.08%

S&P/ASX 200 4,055.8 -11.23 -0.28%

Shanghai Composite 2,351.16 -12.27 -0.52%

Nintendo Co., a maker of video-game players that depends on Europe for a third of its sales, fell 4 percent in Tokyo.

Citic Pacific Ltd., a Hong Kong-based steelmaker with operations in iron-ore mining and property development in China, slid 2.1 percent on concern China needs to do more to support growth.

Hanwha Corp., a trader of petrochemicals and machinery, rose 4 percent in Seoul after its construction unit won an $8 billion deal to build housing units in Iraq.

02:00 New Zealand Annual Budget Release -

02:30 China HSBC Manufacturing PMI (preliminary) May 49.3 48.7

05:00 Japan BoJ monthly economic report May

The euro was 0.2 percent from the lowest level since July 2010 after German Chancellor Angela Merkel said following a European Union summit that her nation stands by its opposition to jointly issued common bonds. Merkel laid out the German position that “much stronger economic cooperation” in the region is needed before euro bonds can be issued, speaking to reporters in Brussels after the summit. European Council President Herman Van Rompuy said leaders are not under any pressure to introduce euro bonds. The 17-nation currency maintained a drop versus the yen before data forecast to show Europe’s services and manufacturing industries shrank for a fourth month. A euro-area composite index based on a survey of purchasing managers in manufacturing and service industries probably fell to 46.6 this month from 46.7 in April, according to the median estimate of economists surveyed by Bloomberg News. A reading below 50 indicates contraction. London-based Markit Economics will release the figure today.

The Japanese and U.S. currencies remained higher after gaining yesterday against most major counterparts on increasing demand for haven assets amid Europe’s deepening debt crisis.

Demand for the so-called kiwi was limited after a report from HSBC Holdings Plc and Markit Economics today showed a purchasing managers’ index for China’s manufacturing was at 48.7 in May, compared with a final figure of 49.3 last month. If confirmed on June 1, it would mark the seventh-straight month below the 50 level that separates contraction from expansion. China is New Zealand’s second-largest export destination.

EUR/USD: during the Asian session the pair has decreased to a yesterday's low.

GBP/USD: during the Asian session the pair traded in a range $1.5675-$1.5700.

USD/JPY: during the Asian session the pair traded in range Y79.40-Y79.55.

European data for Thursday starts at 0600GMT with the details of German Q1 GDP data, while at the same time, the German finance ministry releases its monthly fiscal and economic report. France sees sentiment data at 0645GMT, while this morning also sees the release of the flash manufacturing and services PMIs for May, starting with France at 0658GMT, where forecasts are for readings close to unchanged with 47.0 for manufacturing and 45.7 for services. Germany releases at 0728GMT with expectations of mixed results, a slightly higher 47.0 for manufacturing and slightly lower 52.0 for services. At 0758GMT the EMU release is expected to see 45.9 for manufacturing, 46.5 for services and 46.6 for the composite number. The Germany Ifo data is due at 0800GMT and is broadly expected to slip slightly lower with the business climate  index at 109.2, the current assessment at 117.0 and the expectations index at 101.8. UK data at 0830GMT includes Services Output data and also the second  stimate of Q1 GDP data along with Q1 Business Investment. US data starts at 1200GMT with Building Permits data and is followed at 1230GMT by weekly jobless claims and Durable Goods Orders. This is followed at 1258GMT by US flash PMI.

Asian stocks fell, with the regional benchmark index snapping a two-day rally, as concerns mounted that Greece may exit the euro zone and the Bank of Japan refrained from deploying further monetary stimulus, dimming the outlook for exporters.

Nikkei 225 8,556.6 -172.69 -1.98%

Hang Seng 18,786.19 -252.96 -1.33%

S&P/ASX 200 4,067.04 -53.97 -1.31%

Shanghai Composite 2,363.44 -9.87 -0.42%

Cosco Pacific Ltd., which operates container facilities at Greece’s Piraeus port, fell 4 percent in Hong Kong.

Mitsui & Co., a Japanese trading company, slid 1.6 percent after the nation’s trade data missed estimates.

Quanta Computer Inc. led computer makers lower in Taiwan, dropping 4.2 percent, after bellwether Dell Inc. forecast slower sales.

Shanghai Pharmaceuticals Holding Co. slumped 24 percent in Hong Kong on a report regulators are investigating the drugmaker for suspected financial fraud.

Change % Change Last

Nikkei 225 8,556.6 -172.69 -1.98%

Hang Seng 18,786.19 -252.96 -1.33%

S&P/ASX 200 4,067.04 -53.97 -1.31%

Shanghai Composite 2,363.44 -9.87 -0.42%