Novosti i prognoe: tržište kapitala od 05-06-2014

Most stock indices rose after the European Central Bank’s interest rate cut. The German stock index DAX briefly hits 10,000 for the first time.

The European Central Bank cut its interest rate to 0.15% from 0.25%, but later recovered its losses and traded higher. Analysts had expected a cut to 0.1%.

The ECB also cut its marginal lending to 0.40% from 0.75% and reduced its deposit rate to -0.10% from 0.0%. The European Central Bank is the world’s first major central bank to use a negative rate. The deposit rate of -0.10% means that commercial bank will be charged for holding their reserves. This measure should spur commercial banks to ramp up lending.

Retail sales in the Eurozone climbed 0.4% in April, exceeding expectations for a 0.1% gain, after a 0.3% increase in March. On a yearly basis, retail sales in the Eurozone rose 2.4% in April, exceeding expectations for a 1.3% increase, after a 0.9% gain in March.

German factory orders surged 3.1% in April, beating expectations for a 1.3% rise, after a 2.8% decrease in March.

The Bank of England kept its interest rate unchanged at record low 0.50%. The stimulus program of the Bank of England remained unchanged at 375 billion pounds. Investors had expected this decision. Investors expect the BoE will raise interest rate in the first half of next year.

Indexes on the close:

Name                                   Price                                    Change                 Change %

FTSE 100                             6,813.49                                -5.14                       -0.08%

DAX                                     9,947.83                              +21.16                      +0.21%

CAC 40                                4,548.73                              +47.73                      +1.06%

U.S. stock futures rose as ECB cut its deposit rate below zero and announced additional measures to counter deflation.

Global markets:

Nikkei 15,079.37 +11.41 +0.08%

Hang Seng 23,109.66 -42.05 -0.18%

Shanghai Composite 2,040.88 +16.04 +0.79%

FTSE 6,833.7 +15.07 +0.22%

CAC 4,566.88 +65.88 +1.46%

DAX 9,994.05 +67.38 +0.68%

Crude oil $102.26 (-0.37%)

Gold $1243.20 (-0.04%)

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

Upgrades:

Microsoft (MSFT) upgraded to Outperform at FBR Capital; target raised to $49 from $43

Downgrades:

Other:

Wal-Mart (WMT) initiated with a Sell at Belus Capital; target $71

Twitter (TWTR) initiated with an Outperform at Pacific Crest; target $45

Stock indices traded little changed ahead the European Central Bank’s interest rate decision today. Investors are awaiting the ECB will cut interest rates and announce measures to boost lending to smaller businesses.

Retail sales in the Eurozone climbed 0.4% in April, exceeding expectations for a 0.1% gain, after a 0.3% increase in March. On a yearly basis, retail sales in the Eurozone rose 2.4% in April, exceeding expectations for a 1.3% increase, after a 0.9% gain in March.

German factory orders surged 3.1% in April, beating expectations for a 1.3% rise, after a 2.8% decrease in March.

The Bank of England kept its interest rate unchanged at 0.50%.

Current figures:

Name                                   Price                                    Change                 Change %

FTSE 100                             6,798.96                              -19.67                       -0.29%

DAX                                     9,920.74                                 -5.93                       -0.06%

CAC 40                                4,507.26                                 +6.26                      +0.14%

Asian stock indices were exhibiting a mixed trend ahead the European Central Bank’s interest rate decision. Investors are awaiting the ECB will cut interest rates and announce measures to boost lending to smaller businesses.

The HSBC services purchase managers’ index for China sank to 50.7 in May from 51.4 in April.

Indexes on the close:

Nikkei 225                         15,079.37              +11.41           +0.08%

Hang Seng                          23,109.66              -42.05            -0.18%

Shanghai Composite           2,040.88             +16.04            +0.79%

LG Household & Health Care Ltd. shares dropped 12.0% after its vice chairman sold most his shares.