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Analytics, News, and Forecasts for CFD Markets: stock news — 26-07-2012.
European stocks climbed, halting a four-day selloff, after European Central Bank President Mario Draghi said policy makers will do whatever it takes to preserve the euro.
The Stoxx Europe 600 Index (SXXP) jumped 2.1 percent to 255.61 at 2:22 p.m. in London as all but 58 companies advanced. The gauge had dropped 4.4 percent the previous four sessions as a surge in Spanish bond yields above 7 percent reignited concern that Europe’s debt crisis is yet to be contained.
Stocks surged after Draghi signaled central bank officials are prepared to do whatever is needed to ensure the euro’s survival and act on surging bond yields. His comments came as Spanish policy makers called on the central bank to fight a renewed bout of financial turmoil that pushed the country’s bond yields to euro-area records this week.
Spanish and Italian bonds advanced for a second day. Spain’s two-year yields fell the most this month after Draghi said addressing high yields on sovereign debt was within the central bank’s mandate. German bunds declined as his comments damped demand for the region’s safest assets.
National benchmark indexes rose in 16 of the 18 western- European markets today. The U.K.’s FTSE 100 gained 1.4 percent, France’s CAC 40 jumped 3.1 percent and Germany’s DAX climbed 1.8 percent. Spain’s IBEX 35 jumped 4.3 percent, while Italy’s FTSE MIB surged 4.9 percent.
FTSE 100 5,573.16 +74.84 +1.36% CAC 40 3,207.12 +125.38 +4.07% DAX 6,582.96 +176.44 +2.75%
Banco Bilbao Vizcaya Argentaria, Spain’s largest bank, climbed 7.1 percent to 4.75 euros. UniCredit (UCG), Italy’s biggest lender, surged 7.4 percent to 2.54 euros in Milan.
Unilever rose 6.2 percent to 2,272 pence, the highest since at least September 1988, after the world’s second-biggest consumer-goods maker announced a 5.8 percent gain in underlying revenue in the second quarter, boosted by the growth of personal-care products in Asia. The average analyst estimate surveyed by the company was for a 4.8 percent increase.
France Telecom climbed 4.6 percent to 10.74 euros after the country’s largest phone company reported a 3.2 percent decline in first-half revenue to 21.8 billion euros as price cuts helped slow customer defections. That compares with the 21.7 billion- euro average analyst estimate.
ABB Ltd. (ABBN) gained 4.7 percent to 16.53 Swiss francs after the maker of power-transmission equipment said it’s more confident about its short-term outlook as orders increased in China in recent months and it experienced “sustained order growth” in the U.S. Net income for the second quarter still fell 27 percent to $656 million, missing analyst estimates.
Telefonica SA (TEF) rallied 0.8 percent to 8.73 euros. The shares had tumbled as much as 8.7 percent after Europe’s biggest phone company suspended its 1.50 euro-a-share dividend for 2012 and reduced a revenue forecast.
Alcatel-Lucent (ALU) sank 4.8 percent to 83.3 euro cents after France’s largest network-equipment supplier said it will cut 5,000 jobs as part of a plan to save an additional 750 million euros. The company’s net loss, its first in five quarters, was 254 million euros compared with net income of 43 million euros a year earlier.
Volkswagen AG (VOW) retreated 1.7 percent to 131.35 euros as Europe’s biggest carmaker reported a 3.4 percent rise in second- quarter operating profit to 3.28 billion euros, slower than the first quarter’s 10 percent increase. Second-quarter sales gains also slowed to 19 percent from 26 percent.
Royal Dutch Shell Plc (RDSA) slid 3 percent to 2,122 pence as Europe’s biggest oil company today reported a 13 percent drop in second-quarter profit, excluding one-time items and inventory changes, to $5.7 billion. That missed the average analyst estimate of $6.3 billion.
U.S. stock futures rose as jobless claims fell, durable-goods orders climbed and European Central Bank President Mario Draghi pledged to defend the euro.
Global Stocks:
Nikkei 8,443.1 +77.20 +0.92%
Hang Seng 18,892.79 +15.46 +0.08%
Shanghai Composite 2,126 -10.15 -0.47%
FTSE 5,573.47 +75.15 +1.37%
CAC 3,173.92 +92.18 +2.99%
DAX 6,516.53 +110.01 +1.72%
Crude oil $90.23 (+1,42%)
Gold $1613.30 (+0,32%)
Caterpillar (CAT) was downgraded to Market Perform from Outperform at Wells Fargo.
European stocks fell as companies from Telefonica SA to Alcatel-Lucent SA and Unilever reported earnings.
European stocks fell for a fourth day yesterday as reports showed the U.K. economy shrank the most in three years last quarter, German business confidence declined more than forecast, and U.S. new-house sales unexpectedly fell last month.
Telefonica dropped 5.8 percent to 8.16 euros after the company scrapped a 1.50 euro-a-share dividend for 2012 and said it will resume half of the payout toward the end of next year, citing an “extremely challenging” economic environment. The move will save the company an estimated 10.2 billion euros ($12.4 billion).
Alcatel-Lucent sank 9 percent to 80 euro cents after France’s largest network-equipment supplier announced job cuts as part of a plan to save an additional 750 million euros. The company’s net loss, its first in five quarters, was 254 million euros, or 11 cents a share, compared with net income of 43 million euros, or 2 cents, a year earlier.
FTSE 100 5,483.75 -14.57 -0.26%
CAC 40 3,073.62 -8.12 -0.26%
DAX 6,340.48 -66.04 -1.03%
Asian stocks headed for the first advance in five days after a drop in U.S. new home sales fueled speculation the Federal Reserve may take new steps to spur growth, boosting demand for growth-sensitive shares.
Nikkei 225 8,443.1 +77.20 +0.92%
S&P/ASX 200 4,147.7 +23.75 +0.58%
Shanghai Composite 2,126 -10.15 -0.47%
Nomura Holdings Inc., Japan’s biggest brokerage by market value, advanced 5.7 percent, leading gains among financial firms, on a plan to name a new chief executive officer amid an insider-trading scandal.
Qantas Airways Ltd. rose 9.6 percent in Sydney on a report the carrier was close to forming a long-haul alliance.
Olympus Corp. jumped 9.6 percent after Terumo Corp., a Japanese medical device maker, proposed to invest 50 billion yen ($639 million) in the camera maker and merge with it.
Asian stocks fell, with the regional benchmark index headed for a four-day loss, amid concern Europe’s crisis is worsening and as the International Monetary Fund said China’s economy faces significant downside risks.
Nikkei 225 8,365.9 -122.19 -1.44%
S&P/ASX 200 4,123.9 -9.33 -0.23%
Shanghai Composite 2,136.15 -10.44 -0.49%
Suppliers to Apple Inc. tumbled after the company reported earnings that missed estimates.
Hutchison Whampoa Ltd., an operator of ports and retail chains that gets 55 percent of its revenue in Europe, fell 2.4 percent in Hong Kong.
Toshiba Corp. paced losses among Apple suppliers. Sony Corp., Japan’s No. 1 exporter of consumer electronics, dropped to the lowest since 1980 after a report showed Japan had an unexpected trade surplus in June.
Gome Electrical Appliances Holding Ltd., China’s second-biggest electronics retailer, plunged to an all-time low in Hong Kong after forecasting a first-half loss.
European stocks continued their decline, which has already lasted four days in a row. The fall was caused by walked out of the UK data, which showed that the economy in the second quarter declined most rapidly in the last three years, and data on the U.S. for the sale of new buildings that unexpectedly fell last month.
Shares of BT Group Plc (BT) fell 3.3% after the largest telecommunications provider in the UK announced a reduction of profits. Drax Group Plc (DRX) fell by 15% after the British government raised its subsidies for renewable energy by offering less financial support than predicted. Daimler AG (DAI) rose 4.1% after it became known that in the second quarter, sales increased by 10% to 28.9 billion euros ($ 35 billion). The third-largest producer of luxury cars also said that earnings before interest and taxes amounted to 2.24 billion euros, compared with analysts' expectations at 2.2 billion euros.
Stoxx Europe 600 Index fell 0.1% to 250.39 at the close of trading.
FTSE 100 5,498.32 -0.91 -0.02% CAC 40 3,081.74 +7.06 +0.23% DAX 6,406.52 +16.11 +0.25%
Also, important news, which affected the decrease in the index were data on the IFO business climate index in Germany, which fell to its lowest level since March 2010. The index dropped to 103.3 from 105.2 in June.
Two-year note yield rose to Spain 7.15%, having risen above 7% for the first time since the introduction of the single currency.
Shares of GlaxoSmithKline Plc (GSK) fell 1.3% to 1,426.5 pence, after reducing the projected level of sales for this year. London-based company said in the second quarter, earnings per share were 26.4 pence, which is lower than the average of analysts at 26.8 pence.
Shares of Informa Plc fell 5.3% to 350.4 pence after the company announced a reduction of profits.
The indices started the session growth, but later released data on housing sales in the U.S. in the primary market, which turned out to be worse than expected, put pressure on the indices.
Nevertheless, the indices were able to retreat from the lows reached in the background of a positive impact on the expectations of new measures by the central bank to stimulate national economies.
Yesterday edition of WSJ published an article stating that the Fed is ready to take measures aimed at stimulating economic growth and it may already occur in August or September meeting, the central bank. The possible actions are called buying mortgage bonds, promises to keep the federal funds rate for an even longer time or steps to reduce short-term rates even lower.
Diminished fear and respect of the debt crisis in Europe amid speculation that the granting of a banking license the European Stability Mechanism (ESM) will help solve the debt problems of the region. Today, a representative of the ECB Ewald Nowotny said the presence of arguments in favor of granting banking licenses ESM.
As part of DOW index most of the components in the black. Maximum growth stocks show Boeing Co. (BA, +2.72%), AT&T, Inc. (T, +2.19%), and Cisco Systems, Inc. (CSCO, +2.05%).
The greatest decrease in stocks exhibit the following companies:
Hewlett-Packard Company (HPQ, -1.11%)
Microsoft Corporation (MSFT, -0.99%)
Chevron Corporation (CVX, -0.44%)
Branches in the context of most sectors in positive territory. The leader is the sector conglomerates (0.6%). In red is the sector utilities (-0.1%) and consumer goods sector (-0.4%).
At the time of closure:
Dow +58.73 12,676.05 +0.47%
Nasdaq -8.75 2,854.24 -0.31%
S & P -0.41 1,337.90 -0.03%
Change % Change Last
Nikkei 225 8,365.9 -122.19 -1.44%
S&P/ASX 200 4,123.95 -9.28 -0.22%
Shanghai Composite 2,136.15 -10.44 -0.49%
FTSE 100 5,498.32 -0.91 -0.02%
CAC 40 3,081.74 +7.06 +0.23%
DAX 6,406.52 +16.11 +0.25%
S&P 500 1,337.89 -0.42 -0.03%NASDAQ 2,854.24 -8.75 -0.31%
Dow 12,676.05 +58.73 +0.47%
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