16.11.2012, 07:42

Stocks: Thursday review

 

 



Asian stocks outside Japan slid toward a two-month low amid concern a budget standoff in the U.S. may curb global growth. Japanese shares gained on speculation a change of government may result in more action to stimulate the economy.

Nikkei 225 8,829.72 +164.99 +1.90%

S&P/ASX 200 4,349.25 -39.12 -0.89%

Shanghai Composite 2,030.29 -25.13 -1.22%

BHP Billiton Ltd., the world’s largest mining company, fell 1.8 percent in Sydney, declining for a sixth day in its longest losing streak since July.

Tencent Holdings Ltd., China’s biggest Internet company, dropped 7 percent in Hong Kong after earnings missed estimates.

Nippon Steel & Sumitomo Metal Corp. surged 4.8 percent in Tokyo.


European stocks dropped to a two- month low as the euro area entered its second recession in four years.

A report in Luxembourg showed that the combined economy of the 17-nation euro area contracted in the third quarter. Gross domestic product fell 0.1 percent, matching the median forecast. It shrank 0.1 percent in second quarter. The second successive quarter of negative growth means that the economy has entered a recession.

National benchmark indexes declined in every western- European (SXXP) market except Spain. France’s CAC 40 slid 0.5 percent, while Germany’s DAX and the U.K.’s FTSE 100 both slipped 0.8 percent. Spain’s IBEX 35 added 0.3 percent.

Zurich Insurance declined 3.9 percent to 223.10 Swiss francs. Third-quarter profit slumped 62 percent after the insurer wrote off $550 million following a review of its general-insurance business in Germany. Net income of $477 million missed the average analyst estimate of $707.5 million.

H&M fell 3 percent to 213.10 kronor. Sales at stores open a year or more slid 5 percent last month, the company said in a statement. Richard Edwards, an analyst at Citigroup Inc. in London, had forecast sales would be unchanged.

Tesco Plc, Europe’s biggest retailer by market capitalization, slipped 1.6 percent to 316.3 pence.


Аgain indexes started the session above the zero mark, and again failed to hold in positive territory, with the result that has been updated for many months lows.
The market continues to reign negative sentiment, as the deterioration of the situation in Europe and the problem of "fiscal cliff" continues to put pressure on the markets. The worsening situation in the Middle East also has a negative impact.
After the session went weak data on the Philadelphia Fed's manufacturing index, which became the catalyst for new sales.
Relatively neutral statement retailer Wal-Mart (WMT) has been perceived negatively by market participants. As a result, the company's shares have fallen in value by more than 3.6%. The company's profit for the reporting quarter was slightly above forecasts, revenue - slightly lower. The company also clarified forecasts for the next reporting period, raising the lower bounds of expectations: in the 4th quarter of expected earnings of $ 1.53-$ 1.58 per share, versus analysts' average forecasts $ 1.57; earnings forecast for the 2013 fiscal year, adjusted by $ 4.88-$ 4.93 per share, against a previous forecast of $ 4.83-$ 4.93 and the average market forecast $ 4.93.
The focus of the market participants are now focused on tomorrow's meeting between U.S. President Barack Obama and the leaders of the Democratic and Republican parties, which will focus on reducing the tax benefits and avoid "fiscal cliff."
Most of the components of the index DOW (17 of 30) have fallen in price. Maximum loss suffered shares Wal-Mart Stores Inc. (WMT, -3.63%). Shares rose more than other Cisco Systems (CSCO, +1.59%).
Most sectors of the S & P is in the red. The greatest growth has shown the financial sector (+0.5%) and consumer goods sector (+0.5%). Maximum losses in the municipal sector (-0.6%).
The representative of the IT sector NetApp advanced by 11.4% as under the influence of the quarterly report - profit for the quarter ending October 26, excluding some items was 51 cents per share, on average forecast of Wall Street at 48 cents per share.
At the close:
Dow 12,542.38 -28.57 -0.23%
Nasdaq 2,836.94 -9.87 -0.35%
S & P 500 1,353.33 -2.16 -0.16%

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