European stocks slid the most in a month amid growing concern that Greece may leave the euro as the region’s leaders prepared to meet in Brussels.
Greece’s former Prime Minister Lucas Papademos said that while it is unlikely the nation will leave the euro, it’s still a risk, the Wall Street Journal reported yesterday after the close of European trading.
European leaders are meeting in Brussels today to discuss the region’s debt crisis that has wiped about $4 trillion from equity markets worldwide this month. German Chancellor Angela Merkel has been unable to stifle calls for measures she opposes, including euro bonds, the use of European money to recapitalize banks, a bigger rescue fund and extra time for debt-swamped countries to cut spending.
National benchmark indexes fell in all the western European markets today, except for Iceland. The U.K.’s FTSE 100 lost 2.5 percent and Germany’s DAX slid 2.3 percent. France’s CAC 40 sank 2.6 percent.
LSE plunged 7.3 percent to 947 pence, the biggest drop since November 2009. UniCredit and Intesa Sanpaolo, Italy’s biggest banks, sold about 31 million shares at 960 pence apiece, according to statements from the lenders.
FirstGroup Plc rallied 7.4 percent to 220.1 pence. Britain’s largest train operator boosted full-year earnings 90 percent and said it would accelerate an asset-disposal program in its bus division.
The euro fell to its weakest level against the dollar since July 2010 on speculation a summit of European Union leaders will provide no new measures to stem the sovereign-debt crisis. The shared currency extended losses after dropping below 100 yen for the first time since February and weakening to less than $1.26, price levels where traders who follow technical analysis said sell orders were clustered. Financial turmoil in the euro bloc will come up at tonight’s meeting in Brussels only “at the very end,” European Council President Herman Van Rompuy said in a letter before a gathering of EU officials.
The yen climbed at least 0.7 percent versus all its major peers after the Bank of Japan left its asset-purchase fund unchanged. The yen snapped a two-day drop against the dollar after slipping earlier this week on bets the central bank would decide to boost stimulus at its policy meeting. The BOJ kept its asset-purchase fund at 40 trillion yen today, after expanding it by 10 trillion yen last month. The central bank also left a credit-lending program at 30 trillion yen, it said in a statement in Tokyo today. The policy board kept the key overnight lending rate between zero and 0.1 percent.
U.S. stocks fell, sending the Dow Jones Industrial Average toward the lowest level on a closing basis this year, amid concern Greece may leave the euro and as Dell Inc. tumbled on a disappointing revenue forecast.
Stocks fell even after a report showed that demand for new U.S. homes increased more than forecast in April as low prices and mortgage interest rates drew buyers.
All 10 groups in the S&P 500 retreated today as commodity, technology and financial shares had the biggest losses. Citigroup fell 2.4 percent to $26.27. Bank of America (ВАС) slid 1.3 percent to $6.89.
Technology shares, which comprise 20 percent of the S&P 500, retreated 1.6 percent as 66 of its 71 stocks retreated.
Dell tumbled 18 percent, the biggest decline in the S&P 500, to $12.42. The forecast, paired with a first-quarter sales and earnings miss, pointed to problems endemic to Dell, Steve Felice, Dell’s president, said in a conference call. The sales team focused on individual products instead of packages of hardware and software, he said.
Some of the largest technology companies retreated. Hewlett-Packard Co. (HPQ), which reports quarterly results after the market close, slumped 4.5 percent to $20.80. Intel Corp. (INTC), the world’s biggest chipmaker, declined 3.7 percent to $25.06.

Facebook added 3.6 percent to $32.11. The shares fell below its $38 IPO price on May 21. The offering valued Facebook at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential. The slump reinforced concern that the IPO was priced too high.
Ford Motor Co. jumped 1.4 percent to $10.33. The automaker was raised to investment grade by Moody’s Investors Service yesterday, enabling Executive Chairman Bill Ford, great-grandson of the founder, to reclaim the blue oval logo he put up as collateral for a loan.
Oil fell below $90 a barrel for the first time since November after a government report showed that U.S. crude supplies rose to a 22-year high and as European leaders gather to discuss the euro region’s debt troubles.
Futures fell as much as 2.2 percent as stockpiles climbed 883,000 barrels to 382.5 million barrels last week, the most since August 1990. The European summit is the 18th since Greece was shaken by debt and the first since an anti-austerity campaign carried Francois Hollande to France’s presidency. The euro sank to the lowest level in almost two years.
German Chancellor Angela Merkel is facing calls for measures she opposes, including euro bonds, the use of European money to recapitalize banks, a bigger rescue fund and extra time for debt-swamped countries to cut spending.
Crude oil for July delivery fell to $89.55 a barrel, the lowest level since Nov. 1, on the New York Mercantile Exchange.
Brent oil for July settlement fell $2.63, or 2.4 percent, to $105.78 a barrel on the London-based ICE Futures Europe exchange. The European-benchmark contract touched $105.70, the lowest level since Dec. 20.

Gold prices are falling because of fears that the EU summit on Wednesday, did not save the markets from the fear of debt crisis in the eurozone.
At the summit, French President Francois Hollande will promote the idea of joint euro zone bond, which is opposed by German Chancellor Angela Merkel. Meanwhile, the market is increasingly wary of Greece out of the eurozone, to avoid the austerity measures, as we approach the elections in the country, which will be held on June 17.
The physical demand in India - the world's largest gold market - remains weak due to the increase in prices associated with the depreciation of the rupee to a record low, and increase sales of gold scrap.
The cost of the June gold futures on the COMEX fell today to $ 1533.9 an ounce.

Resistance 3:1363 (May 10-11 highs)
Resistance 2:1348/50 (area of May 14-15 highs)
Resistance 1:1326 (May 22 high)
Current price: 1302,50
Support 1:1288 (area of May 18 and 21 lows)
Support 2:1280 (MA (200) for D1)
Support 3:1242 (area of Dec 28-29 low)

EUR/USD $1.2650, $1.2725, $1.2730, $1.2750
USD/JPY Y78.75, Y79.00, Y79.75, Y79.85, Y80.00
EUR/GBP stg0.8040, stg0.8100
USD/JPY Chf0.9400, Chf0.9300
USD/CAD C$1.0140
Data:
08:00 Eurozone Current account, adjusted, bln March -1.3 3.4 9.1
08:30 United Kingdom Bank of England Minutes -
08:30 United Kingdom Retail Sales (MoM) April +1.8% -0.7% -2.3%
08:30 United Kingdom Retail prices, Y/Y April +3.3% +1.0% -1.1%
09:00 Eurozone Industrial New Orders s.a., m/m March -1.3% -0.1% +1.8%
09:00 Eurozone Industrial New Orders, y/y March -6.1% +2.8%
09:15 United Kingdom MPC Member Bean Speaks -
10:00 United Kingdom CBI industrial order books balance May -8 -9 -17
The euro fell on speculation a summit of European Union leaders today will provide no new measures to stem the sovereign debt crisis.
The common currency dropped as European Central Bank council member Andres Lipstok said policy makers aren’t planning more stimulus at the moment.
Britain’s pound weakened against the dollar after a report showed U.K. retail sales fell the most in more than two years.
Sales including auto fuel declined 2.3% in April from the previous month, a report showed today. The median forecast of economists was for a 0.7% decline.
EUR/USD: pair showed low in $1,2610 area, then receded.

GBP/USD: the pair showed low below $1,5700. Later the rate restored in $1,5720 area.

USD/JPY: the pair decreased in Y79.30 area.

This is followed at 1400GMT by monthly New-Home Sales data and also the FHFA Home Price Index.
U.S. stock futures declined amid concern that Greece may leave the euro as the region’s leaders meet in Brussels.
Global Stocks:
Nikkei 8,556.6 -172.69 -1.98%
Hang Seng 18,786.19 -252.96 -1.33%
Shanghai Composite 2,363.44 -9.87 -0.42%
FTSE 5,314.7 -88.58 -1.64%
CAC 3,032.66 -51.43 -1.67%
DAX 6,351.72 -83.88 -1.30%
Crude oil $91.44 (-0.45%)
Gold $1563.50 (-0.83%)
no plan to prepare for Greek euro exit.
EUR/USD
Offers $1.2745/50, $1.2720/25, $1.2700, $1.2680/85
Bids $1.2600, $1.2580
AUD/USD
Offers $0.9980/85, $0.9960/65, $0.9950
Bids $0.9730/25, $0.9700, $0.9665/60
USD/JPY
Offers Y81.00, Y79.70/75
Bids Y79.30
EUR/JPY
Bids Y100.20/00, Y99.85/80, Y99.60/50
EUR/GBP
Offers stg0.8160/65, stg0.8140/50, stg0.8120, stg0.8100
Bids stg0.8025/20, stg0.8000, stg0.7980, stg0.7965/60
Resistance 3: Y80.55/60 (area of high of May)
Resistance 2: Y80.10/15 (resistance line from Apr 2, May 22 high)
Resistance 1: Y79.80 (МА (200) for Н1)
Current price: Y79.39
Support 1: Y79.30 (session low)
Support 2: Y79.00 (May 18 low)
Support 3: Y78.55 (МА (200) for D1)

Resistance 3: Chf0.9700 (psychological level)
Resistance 2: Chf0.9600 (area of high of January)
Resistance 1: Chf0.9520 (session high)
Current price: Chf0.9486
Support 1: Chf0.9440 (МА (100) for Н1 and May 21 high)
Support 2: Chf0.9400 (МА (200) for Н1)
Support 3: Chf0.9370 (area of May 21-22 lows)

Resistance 3 : $1.5900 (area of МА (200) for Н1)
Resistance 2 : $1.5840 (area of May 18-22 high)
Resistance 1 : $1.5800 (area of МА (100) for Н1)
Current price: $1.5725
Support 1 : $1.5675 (session low)
Support 2 : $1.5600 (psychological level, low of March)
Support 3 : $1.5520 (support line from May’2010)

Resistance 3 : $1.2770 (МА (200) for Н1)
Resistance 2 : $1.2730 (МА (100) for Н1)
Resistance 1 : $1.2690 (session high)
Current price: $1.2750
Support 1 : $1.2620/90 (area of low of 2012 and low of August’2010)
Support 2 : $1.2500 (psychological level)
Support 3 : $1.2400 (psychological level)

Germany's 2012 fed net borrowing likely under planned E34.8 bln;
EUR/USD $1.2650, $1.2725, $1.2730, $1.2750
USD/JPY Y78.75, Y79.00, Y79.75, Y79.85, Y80.00
EUR/GBP stg0.8040, stg0.8100
USD/JPY Chf0.9400, Chf0.9300
USD/CAD C$1.0140
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.
00:00 Australia Conference Board Australia Leading Index March 0.0% 0.2%
03:30 Japan BoJ Interest Rate Decision - 0.10% 0.10% 0.10%
03:30 Japan BoJ Monetary Policy Statement -
07:30 Japan BOJ Press Conference
The yen climbed against all of its 16 major peers after the Bank of Japan refrained from adding monetary stimulus that debases the currency. The yen gained for the first time in three days after the central bank left its asset-purchase fund unchanged, as was forecast by all economists in a Bloomberg News survey. Half of the 14 economists in the Bloomberg survey anticipate the BOJ will add stimulus by July, when its price forecasts will indicate any progress in countering decade-long deflation. The central bank expanded its asset-purchase program in February and April.
The Dollar Index touched the highest in 20 months as elections loom in Greece on June 17 that may determine whether the nation stays in the euro currency bloc. The euro earlier declined by as much as 0.3 percent as European Union leaders prepare to meet today and Greece heads for new elections after an inconclusive vote this month. Dow Jones reported that former Greek Prime Minister Lucas Papademos said while it’s unlikely the nation will leave the euro, it’s still a risk. CNBC quoted Papademos as saying that no preparations for a departure are under way in Greece.
The Australian dollar slid to this year’s low as Asian stocks dropped, sapping demand for higher- yielding currencies.
EUR/USD: during the Asian session the pair traded in a range $1.2640-1.2685.
GBP/USD: during the Asian session the pair traded in a range $1.5740-1.5770.
USD/JPY: during the Asian session the pair fell to Y79.50.
On Wednesday ECB current account is due, at 0800GMT. UK data provides the focus of the morning, with the latest Bank of England MPC Minutes and also Retail Sales data both at 0830GMT. The BoE minutes will likely show a split on the MPC. MPC member David Miles voted for stg25 billion extra in quantitative easing in April and things have, arguably, deteriorated since then so he looks sure to have dissented again in May. US data starts at 1100GMT with the weekly MBA mortgage applications data. This is followed at 1400GMT by monthly New-Home Sales data and also the FHFA Home Price Index.
MPC Backs Unchanged QE By 8-1 Margin In May
Yesterday the yen weakened the most in a month against the dollar after Fitch Ratings cut Japan’s credit ranking, saying the nation isn’t acting quickly enough to tackle its public debt burden. Fitch lowered Japan’s long-term, foreign-currency ranking to A+ from AA, and cut the local-currency grade to A+ from AA-, the company said in a statement. The outlooks on both are negative, it said. Japan’s currency fell versus all its 16 major peers as the central bank started a two-day meeting amid speculation it will boost stimulus measures to spur flagging growth. Japanese Finance Minister Jun Azumi told reporters the expects the Bank of Japan to take appropriate steps in a timely manner. He said he regards highly the steps taken by the central bank since February. The BOJ expanded its asset-purchase program in February and April.
The euro dropped toward a four-month low against the greenback after the Organization for Economic Cooperation and Development said Europe’s debt crisis risks spiraling. Gross domestic product in the euro region will shrink 0.1 percent this year and expand 0.9 percent in 2013 instead of posting growth of 0.2 percent and 1.4 percent as predicted last November, the Paris-based organization said. German Chancellor Angela Merkel said yesterday she won’t shy away from disagreeing with French President Francois Hollande at the European Union summit beginning tomorrow in Brussels.
The pound snapped a two-day gain versus the dollar as the IMF said more stimulus such as quantitative easing, or QE, was needed to boost the economy. A government report showed inflation slowed in April more than economists forecast.
EUR/USD: yesterday the pair fell to the last week’s low.
GBP/USD: yesterday the pair fell below $1.5800.
USD/JPY: yesterday the pair gain to Y80.00.
On Wednesday ECB current account is due, at 0800GMT. UK data provides the focus of the morning, with the latest Bank of England MPC Minutes and also Retail Sales data both at 0830GMT. The BoE minutes will likely show a split on the MPC. MPC member David Miles voted for stg25 billion extra in quantitative easing in April and things have, arguably, deteriorated since then so he looks sure to have dissented again in May. US data starts at 1100GMT with the weekly MBA mortgage applications data. This is followed at 1400GMT by monthly New-Home Sales data and also the FHFA Home Price Index.
Asian stocks rose for a second day on speculation China and Europe will do more to bolster economic growth, boosting the outlook for the region’s exporters.
Nikkei 225 8,729.29 +95.40 +1.10%
S&P/ASX 200 4,121 +47.38 +1.16%
Shanghai Composite 2,369.97 +21.67 +0.92%
LG Electronics Inc., South Korea’s electronics maker that depends on Europe for 16 percent of its sales, rose 7.6 percent.
Guangzhou R&F Properties Co. led Chinese developers higher as a leading index rose and after a report the country will bring forward infrastructure investment.
Woori Finance Holdings Co. jumped 6.5 percent in Seoul as South Korea’s top financial regulator said the government needs to cut its stake in the company.
European stocks climbed the most in a month amid speculation that China and the euro area will do more to stimulate global economic growth.
China plans to speed up approval of infrastructure projects and allocate construction funding faster to aid growth, the China Securities Journal reported.
Germany’s Chancellor, Angela Merkel, said she may disagree with France’s President, Francois Hollande, on how to tackle the sovereign-debt crisis at a meeting on May 23.
Germany will consider all ideas on bolstering euro-area growth, Finance Minister Wolfgang Schaeuble said as he and his French counterpart, Pierre Moscovici, met.
National benchmark indexes climbed in 16 of the 18 western- European markets. The U.K.’s FTSE 100 and France’s CAC 40 advanced 1.9 percent. Germany’s DAX increased 1.7 percent.
Vodafone gained 4.2 percent to 172 pence. Europe’s largest mobile-phone company said fourth-quarter service revenue excluding currency swings and acquisitions increased 2.3 percent. It rose 0.9 percent in the previous quarter. Analysts had estimated growth of 1.7 percent.
Sonova tumbled 9.9 percent to 84.10 francs. The maker of Phonak hearing aids reported full-year earnings that missed analysts’ estimates as the strength of the Swiss franc reduced the value of sales from outside its domestic market.
U.S. stocks erased earlier gains as concern that Greece would exit the euro and a tumble in Facebook Inc. shares overshadowed economic optimism.
Stocks erased gains after Dow Jones reported that former Greek Prime Minister Lucas Papademos said the nation is considering preparations to leave the shared currency. European Union leaders are planning to gather in Brussels tomorrow to discuss how to revive growth. Equities rallied earlier today as sales of existing U.S. homes rose in April while investors speculated China and Europe will stimulate growth.
Facebook, the social networking site that raised $16 billion in an initial public offering last week, plunged 8.9 percent to $31. The offering valued Facebook at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential.
JPMorgan Chase & Co. (JPM) jumped 4.6 percent to $34.01, rebounding from a 20 percent plunge following its May 10 disclosure of at least $2 billion in trading losses. Goldman Sachs Group Inc. analysts reiterated their buy rating on the stock today, saying the company’s plan to halt share buybacks reflects a “prudent decision” to preserve capital given the volatility and uncertainty around its chief investment office’s holdings.
Urban Outfitters Inc. climbed 7.4 percent to $28.10. The retailer that rehired co-founder Richard Hayne as chief executive officer this year reported first-quarter profit that beat analysts’ estimates on record sales.
Ralph Lauren Corp. added 2.7 percent to $150.27. The retailer of its namesake brand clothing reported profit that beat analysts’ estimates because of sales gains at its own shops and department stores.
Resistance 3: Y80.85 (Apr 24 low)
Resistance 2: Y80.55 (May 16 high)
Resistance 1: Y80.15 (May 12 high)
The current price: Y79.59
Support 1: Y79.50 (session low)
Support 2: Y79.00 (May 18-21 low)
Support 3: Y78.70 (Feb 15 high)

Resistance 3: Chf0.9575 (Jan 13-17 high)
Resistance 2: Chf0.9525 (Jan 16 low)
Resistance 1: Chf0.9500 (May 18 high)
The current price: Chf0.9475
Support 1: Chf0.9465 (session low)
Support 2: Chf0.9440 (May 21 high)
Support 3: Chf0.9365/75 (area of May 21-22 low)

Resistance 3 : $1.5885 (May 16 low)
Resistance 2 : $1.5845 (May 22 high)
Resistance 1 : $1.5775 (session high)
The current price: $1.5747
Support 1 : $1.5730 (Mar 18 low)
Support 2 : $1.5695 (Mar 16 low)
Support 3 : $1.5635/45 (area of Mar 14-15 low)

Resistance 3 : $1.2810/25 (area of May 21-22 high)
Resistance 2 : $1.2725 (May 21 low)
Resistance 1 : $1.2685 (session high)
The current price: $1.2669
Support 1 : $1.2640 (Jan 18 low)
Support 2 : $1.2625 (May 21 low)
Support 3 : $1.2585 (Aug 24 low)

Change % Change Last
Gold 1,568 -20 -1.28%
Oil 91.45 -1.12 -1.21%
Change % Change Last
Nikkei 225 8,729.29 +95.40 +1.10%
S&P/ASX 200 4,121 +47.38 +1.16%
Shanghai Composite 2,369.97 +21.67 +0.92%
FTSE 100 5,403.28 +98.80 +1.86%CAC 40 3,084.09 +56.94 +1.88%
DAX 6,435.6 +104.56 +1.65%
Dow 12,503 -2 -0.01%
Nasdaq 2,839 -8 -0.29%
S&P 500 1,317 +1 +0.05%
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,2679 -1,01%
GBP/USD $1,5763 -0,36%
USD/CHF Chf0,9471 0,9378
USD/JPY Y79,97 +0,84%
EUR/JPY Y101,40 -0,14%
GBP/JPY Y126,04 +0,48%
AUD/USD $0,9793 -1,23%
NZD/USD $0,7542 -1,38%
USD/CAD C$1,0212 +0,16%
00:00 Australia Conference Board Australia Leading Index March 0.0%
03:30 Japan BoJ Interest Rate Decision - 0.10% 0.10%
03:30 Japan BoJ Monetary Policy Statement -
07:30 Japan BOJ Press Conference -
08:00 Eurozone Current account, adjusted, bln March -1.3 3.4
08:30 United Kingdom Bank of England Minutes -
08:30 United Kingdom Retail Sales (MoM) April +1.8% -0.7%
08:30 United Kingdom Retail prices, Y/Y April +3.3% +1.0%
09:00 Eurozone Industrial New Orders s.a., m/m March -1.3% -0.1%
09:00 Eurozone Industrial New Orders, y/y March -6.1%
09:15 United Kingdom MPC Member Bean Speaks -
10:00 United Kingdom CBI industrial order books balance May -8 -9
12:30 Canada Retail Sales, m/m March -0.2% +0.4%
12:30 Canada Retail Sales ex Autos, m/m March +0.5% +0.6%
12:30 Canada Leading Indicators, m/m April +0.4% +0.3%
14:00 U.S. New Home Sales April 328 335
14:00 U.S. Housing Price Index, m/m March +0.3% +0.4%
14:30 U.S. EIA Crude Oil Stocks change - +2.1
18:00 U.S. FOMC Member Narayana Kocherlakota -
22:45 New Zealand Trade Balance April 134 400
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