Stocks: Thursday’s review
14.12.2012, 07:37

Stocks: Thursday’s review

 

 

Asian stocks rose, with the regional benchmark index extending its longest rally in more than three years, as Japanese exporters advanced after the yen touched an almost nine-month low versus the dollar.

Nikkei 225 9,742.73 +161.27 +1.68%
S&P/ASX 200 4,582.79 -1.02 -0.02%
Shanghai Composite 2,061.48 -21.25 -1.02%
Canon Inc., the world’s biggest camera maker, climbed 2.1 percent in Tokyo as the weaker yen boosted the outlook for exporters.
Mitsubishi UFJ Financial Group Inc. rose 1.1 percent as Japan’s No. 1 lender is poised to announce the purchase of Bank of America Corp.’s stake in their Japanese private banking venture.
Chimei Innolux Corp., Taiwan’s largest maker of liquid- crystal displays, jumped 6.9 percent on a report it will return to profit next year as sales increase.

European stocks fell from an 18- month high as Federal Reserve Chairman Ben S. Bernanke said the central bank’s plan to buy $45 billion a month of Treasuries will fail to offset the effects of the fiscal cliff.
European Union finance ministers agreed to put the European Central Bank in charge of all large euro-area lenders. About 200 banks will qualify for oversight by the ECB rather than national regulators, Financial Services Commissioner Michel Barnier said in Brussels today.
At a separate meeting, euro-area ministers approved a 49.1 billion-euro ($64 billion) installment of aid to Greece. The payment forms part of the nation’s two bailouts from the EU and the International Monetary Fund. The leaders of the 27 member states began a two-day summit today.
National benchmark indexes retreated in 11 of the 18 western European markets. The U.K.’s FTSE 100 (UKX) slid 0.3 percent and Germany’s DAX declined 0.4 percent. France’s CAC 40 decreased 0.1 percent.
Deutsche Bank lost 2.7 percent to 33.35 euros after saying that increased restructuring costs will cause the bank to miss profit forecasts this quarter. The average of four analyst estimates compiled by Bloomberg had predicted net income of 509.8 million euros.
UBS AG dropped 1.1 percent to 15.08 Swiss francs after a person familiar with the matter said U.S. and U.K. regulators may fine Switzerland’s biggest bank more than $1 billion for trying to rig global interest rates. The final figure may still change, three people familiar with the investigations said.
Centamin tumbled 47 percent to 27.7 pence, its biggest drop since its initial public offering in 2001. The company said that Egyptian General Petroleum Corp. will not supply it with diesel for the Sukari gold mine until it pays a bill for $65 million. Centamin called the claim illegal.
Volvo declined 4.3 percent to 91.85 kronor after Renault sold its remaining stake in the Swedish truck maker for 12.8 billion kronor ($1.9 billion). The French carmaker disposed of a 6.5 percent holding, saying it would use the proceeds to reduce debt and invest in France, Russia and China. Renault’s shares climbed 1.5 percent to 40.22 euros.


U.S. indices started the session on zero, but after the start of trading has increased the pressure on the index.
Indices declined, despite the announcement on the eve of the Federal Reserve plans to launch next year of a new program of bond purchases in place of the final operations of Twist, giving the ECB rights monitoring of EU banks, the final decision on the allocation of the next tranche of Greece and greatly exceeded expectations data on initial applications for unemployment benefits in the U.S..
Uncertainty regarding the decision on "fiscal cliff" and fears the consequences of putting pressure on markets. Both sides of the negotiations can not find a compromise, which ultimately can cause automatic spending cuts by the U.S. and higher taxes, and it can send the world's largest economy into recession.
It is not entirely positive for the stock market is the Fed's decision yesterday to peg the monetary policy of the Fed to employment rates and inflation. The fact is that if the situation in the U.S. labor market continues to improve, albeit the pace of improvement will continue to be modest, it may increase the likelihood of the restriction of incentives to help the U.S. central bank is supporting the economy.
Most of the components of the index DOW (25 of 30) decreased in price. Below are the remaining shares Merck & Co. (MRK, -2.89%). Growth of more than 0.1% was led by Wal-Mart (WMT, +0.15%) and Caterpillar (CAT, +0.47%).
All sectors of the S & P index fell. Maximum loss showed the health sector (-0.9%).
Shares of high-tech companies Clearwire jumped 14.9% on news that the mobile operator Sprint is ready to buy the remaining shares of Clearwire for $ 2.1 billion
Quotes of the consumer electronics retailer Best Buy soared by 15.9% against the recent media reports citing informed sources that its founder, Richard Schulze (Richard Schulze) intends to make an offer for the acquisition of the company by the end of this week.
At the close:
Dow 13,170.72 -74.73 -0.56%
Nasdaq 2,992.16 -21.66 -0.72%
S & P 500 1,419.45 -9.03 -0.63%

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