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| | US Market Reports |  | | Dow Jones | NASDAQ | NYSE | AMEX |  |  |  |  | | Please click on the images to view our interactive charts | | | Stocks have moved mostly lower in early trading on Wednesday, extending the substantial move to the downside seen in recent sessions. The major averages have all slipped into negative territory, although selling pressure remains relatively subdued. The major averages have seen some further downside in recent trading, falling to new lows for the young session. The Dow is down 21.12 points or 0.2 percent at 12,049.69, the Nasdaq is down 15.65 points or 0.6 percent at 2,685.91 and the S&P 500 is down 4.68 points or 0.4 percent at 1,280.26. Overseas, stock markets in the Asia-Pacific region closed mostly lower on Wednesday, with Hong Kong's Hang Seng Index and Australia's All Ordinaries Index falling by 0.9 percent and 0.7 percent, respectively. Japan's Nikkei 225 Index bucked the downtrend, however, edging up by 0.1 percent. The major European markets have also shown notable moves to the downside on the day. The U.K.'s FTSE 100 Index is down by 0.7 percent, while the French CAC 40 Index and the German DAX Index are down by 0.9 percent and 0.8 percent, respectively. In the bond market, treasuries are seeing strength on the day after ending the previous session nearly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is currently down by 4.2 basis points at 2.969 percent. The early weakness on Wall Street comes as traders continue to digest comments from Federal Reserve Chairman Ben Bernanke, who spoke at the International Monetary Conference in Atlanta near the end of the trading day on Tuesday. Bernanke acknowledged that the economic recovery has been "uneven" and "frustratingly slow" but did not indicate that the Fed is likely to take additional steps to prop up the economy. "Overall, despite the slightly more downbeat tone on the economic recovery, Bernanke didn't offer any hints that QE3 could be coming soon," said Paul Ashworth, Chief U.S. Economist at Capital Economics. "Somewhat surprisingly, he even admitted that 'monetary policy cannot be a panacea.'" Ashworth added, "We wouldn't completely rule out QE3, but not until next year at the earliest and even then only if the Fed is trying to offset what Bernanke warned today could be 'an increasing fiscal drag on the recovery.'" The selling pressure may also be due in part to news that the World Bank lowered its global economic growth forecast for 2011 to 3.2 percent from 3.3 percent, citing the political unrest in North Africa and the Middle East and the natural disaster in Japan. Meanwhile, the Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, at 2 pm ET. The report is typically released about two weeks before the monetary policy meeting is held. Networking stocks are seeing considerable weakness in early trading, with Ciena (CIEN) leading the way lower after reporting a wider than expected second quarter loss and forecasting weaker than expected third quarter revenues. Shares of Ciena are currently down by 12.5 percent. Electronic storage, semiconductor, and gold stocks have also come under pressure, moving to the downside along with most of the major sectors. On the other hand, some oil stocks are bucking the downtrend amid a sharp rise by the price of crude oil. |
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| | Canadian Market Reports | | | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | TSX Poised For Weak Open Amid Faltering Commodities Bay Street stocks may extend losses at open Wednesday amid falling commodities and escalating concerns over global economic growth after a bearish assessment of the U.S. economy by Federal Reserve chairman Ben Bernanke. Cues from the global equity markets were also not encouraging with most Asian markets ending lower overnight, while European stocks were lingering in red. U.S. Federal Reserve chairman Ben Bernanke acknowledged in a speech on Tuesday afternoon that economic growth this year has been somewhat slower than expected. In his speech, Bernanke made no mention of more quantitative easing - printing money to buy bonds - to provide further stimulus to the economy. Meanwhile, the World Bank has lowered its global growth forecast for 2011 to 3.2 percent from 3.3 percent, citing the political unrest in the North Africa and Middle East and the natural disaster in Japan. The World Bank left unchanged a prediction for a global rebound to 3.6 percent in 2012. U.S. stock futures were pointing to a lower open. On Tuesday, the S&P/TSX Composite Index shed 35.74 points or 0.27 percent to 13,282.92, extending losses for a sixth session. The price of crude oil moved down near $98 Wednesday morning as traders await cues from official crude oil inventories data and the outcome of the OPEC's meeting. Today during trading hours, the EIA will release its U.S. crude oil inventories report for the week ended June 03. Analysts expect a decline of 1.5 million barrels in crude-oil stocks and an increase of 1.1 million barrels for supplies of gasoline last week. Crude for July eased $0.51 to $98.58 a barrel. The price of gold slipped near $1,530 Wednesday morning as the U.S. dollar was steady despite not-so-optimistic comment on the economic growth by Federal Reserve chairman Ben Bernanke. Gold for August delivery was down $7.70 to $1,536.30 an ounce. In corporate news from Canada, contract drilling services provider Major Drilling Group (MDI.TO) reported a much improved fourth quarter net earnings of C$9.4 million or C$0.13 per share compared to C$3.2 million or C$0.04 per share last year. Analysts were expecting the company to report earnings of C$0.22 per share for the quarter. Junior oil and natural gas firm Crocotta Energy (CTA.TO) reported a wider first quarter net loss of $4.5 million or $0.06 per share, compared to a loss of $2.6 million or $0.04 per share a year ago. Yesterday, the stock gained over 8 percent. Renewable energy company Innergex Renewable Energy (INE.TO) swung to profit in first quarter, reporting net income of C$5.73 million or C$0.08 per share compared to a loss of C$64.91 million or C$1.33 per share in the same quarter of last year. The company declared a dividend of C$0.1450 per common share payable on July 15, 2011. According to media reports, Canadian insurer Manulife Financial (MFC.TO) approached the Maple Group Acquisition Corp. to be part of its $3.68 billion unsolicited bid for Canadian stock market operator TMX Group (X.TO). In economic news Canada Mortgage and Housing Corporation (CMHC) said Canadian housing starts rose last month, as condo and duplex construction offset fewer starts of single-family dwellings. The seasonally adjusted annual rate of housing starts was 183,600 units in May, up from 178,700 units in April 2011. |
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| | European Market Reports | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | European Markets Fall On Growth Worries Most European markets are notably lower on Wednesday after Federal Reserve Chairman Ben Bernanke's comments on the U.S. economic recovery dampened sentiment across the globe. Additionally, a World Bank report released earlier in the day revealed a muted economic performance for the global economy this year, prompting a flight into safe havens like dollar, which is exerting downward influence on commodities. The Euro Stoxx 50 index of eurozone bluechip stocks is losing 1.05 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.93 percent. The German DAX is dropping 1.35 percent and the French CAC 40 is falling 0.90 percent. The UK's FTSE 100 is sliding 1.08 percent and Switzerland's SMI is retreating 1.06 percent. Among the DAX components, Commerzbank is declining 3.2 percent and Deutsche Bank is losing 2 percent. Nomura reduced its price target on Commerzbank to 3.50 euros from 4.50 euros, while ING raised its rating on the stock to "Buy" from "Hold." Chipmaker Infineon Technologies is losing 2.2 percent and SAP is falling 1.2 percent. Automakers Volkswagen, Daimler and BMW are declining between 1.9 percent and 1.35 percent. Insurers Allianz and MunichRe are down 1.6 percent each. Siemens is down 1.4 percent. HSBC reduced its price target on the stock to 115 euros from 125 euros. Morgan Stanley raised its price target on Basf to 77 euros from 72 euros. However, Basf is declining about 2 percent. RWE is losing 0.44 percent, while EON is modestly up. Morgan Stanley upgraded its rating on both utilities. Outside the main index, Kabel Deutschland is losing 6 percent after reporting a full-year loss that widened from last year owing to refinancing related one-off expenses. In Paris, oil & gas services provider Technip is falling 2.3 percent. Total is losing 0.8 percent. The oil giant said it is selling its stake in Norway's Gassled joint venture for $870 million. Among lenders, Natixis and Societe Generale are notably lower. BNP Paribas and Credit Agricole are losing moderately. Car manufacturers Renault and Peugeot are losing 2.2 percent and 1.1 percent, respectively. Cap Gemini and STMicroelectronics are notably lower. In London, Antofagasta is falling 3.7 percent. Fresnillo, Kazakhmys, Xstrata, Eurasian Natutal Resources and Lonmin are losing between 3.4 percent and 2.7 percent. Royal Bank of Scotland is down 1.5 percent. Barclays is down 0.7 percent. Lloyds Banking Group is flat. BG Group and BP are declining 1.8 percent and 1.5 percent, respectively. In Zurich, UBS is falling 2 percent. Goldman Sachs cut its price target on the stock to 23.30 Swiss francs from 23.40 francs. On the economic front, German shipments declined more than expected in April, pushing down the trade surplus below expectations. Exports fell by calendar and seasonally adjusted 5.5 percent month-on-month in April, after rising 7.2 percent in March, exceeding the expected 3 percent drop. Separately, data showed that the country's April industrial output rose 9.6 percent on year, compared to the consensus of a growth of 10 percent. Switzerland's unemployment rate dropped further in May, data from the State Secretariat For Economic Affairs showed. The eurozone economy expanded 0.8 percent sequentially in the first quarter, second estimates published by Eurostat showed. That follows 0.3 percent expansion in the fourth quarter of 2010. The growth rate matched flash estimate released on May 13. Across Asia/Pacific, Australia's All Ordinaries lost 0.70 percent and Hong Kong's Hang Seng retreated 0.91 percent. China's Shanghai Composite Index gained 0.22 percent and Japan's Nikkei 225 rose 0.07 percent. In the U.S., futures point to a lower open on Wall Street. Tuesday, stocks saw moderate strength for much of the trading session, but came under pressure late in the day on the heels of comments from Bernanke, pulling the major averages into negative territory. Bernanke spoke at the International Monetary Conference in Atlanta, indicating that the Fed is likely to leave accommodative monetary policy in place due to slower than expected economic growth. The Dow dipped 0.2 percent, the Nasdaq edged down less than a tenth of a percent and the S&P 500 slipped 0.1 percent. In the commodity space, crude for July delivery is losing $0.73 to $98.36 per barrel and August gold is sliding $8.3 to $1535.7 a troy ounce. |
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| | Asia Market Reports | | | | Nikkei 225 | Hang Seng | Bse Sensex | S&P/ASX 20 |  |  |  |  | | Please click on the images to view our interactive charts | | | Indian Market Ends In Red On Weak Global Cues Profit-taking by traders after two sessions of gains amid weak global cues dragged the Indian market modestly lower on Wednesday. With Greek debt issues still weighing on investor minds and speculation mounting over further interest rate hikes by Beijing, a further drop in crude prices to near $98 a barrel failed to lift sentiment. Expectations that OPEC will raise crude output at a meeting later today kept a lid on crude prices. After showing some resilience early in the session, the benchmark BSE Sensex lost ground during the last two hours of trading to end down 101 points or 0.55 percent at 18,394, with 19 of its components declining. Likewise, the broader Nifty index struggled for direction in the morning before losing ground and ending down 29 points or 0.53 percent at 5,527. Most Asian stock markets fell on Wednesday, European stocks drifted lower for a sixth consecutive session, dragged down by miners, and the Dow futures pointed to a weaker open on Wall Street, following cautious comments from Federal Reserve chairman Ben Bernanke on the U.S. economic recovery. Bernanke admitted Tuesday that economic growth has been below its potential this year but gave no hints regarding further stimulus plans, dashing investor hopes that that there could be a third round of quantitative easing. "Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," he said. Adding to the negative tone, the World Bank today lowered its global growth forecast for 2011 to 3.2 percent from 3.3 percent, citing the political unrest in the North Africa and Middle East and the natural disaster in Japan. Credit ratings agency Moody's, meanwhile, warned that the U.K.'s triple-A credit rating could be at risk. Back home, healthcare, banking, auto, metal and oil/gas stocks bore the brunt of the selling, while FMCG stocks rose on defensive buying. Consumer goods also witnessed stock-specific buying. Auto stocks fell ahead of a meeting of a government panel tomorrow that will decide on the fuel price hike. Hero Honda Motors tumbled 3.6 percent and Bajaj Auto lost 1.5 percent. Car maker Maruti Suzuki fell 1.2 percent, as investors kept a close eye on an ongoing strike at its Manesar plant. In the IT sector, Infosys shed 0.7 percent after it bought the software solutions business of New Zealand's Telecom Corporation for an undisclosed sum. Rival TCS and Wipro closed in positive territory with modest gains. Rate-sensitive banking stocks declined ahead of RBI's monetary policy review meeting due next week. ICICI Bank lost 0.6 percent and HDFC Bank fell a percent. SBI shed a percent after it announced plans to raise 200 billion rupees by December via a rights issue. Axis Bank lost 1.3 percent on going ex-dividend. Among the other prominent decliners, aluminum maker Hindalco fell 2 percent, mortgage lender HDFC eased 1.6 percent, copper producer Sterlite shed a percent and energy giant Reliance Industries ended down 0.9 percent. Realtor DB Realty climbed nearly 7 percent on posting solid FY11 earnings. Other property stocks such as DLF, Ackruti City and Parsvnath Developers closed up between 0.3 percent and 3 percent. Reliance Communication rose 2.5 percent amid media reports that U.S.-based private equity firms TPG Capital and Carlyle Group are in talks to buy a stake in the company's mobile-phone towers unit, Reliance Infratel. FMCG player Hindustan Unilever advanced 1.7 percent and ITC added 0.8 percent on defensive buying. Power producer NTPC gained a percent on an ET report that it is among 12 other power firms that will receive coal for their newly commissioned power projects with combined capacity of 12,200 megawatts. ONGC lost 2.3 percent while GAIL rose 1.9 percent amid reports that they are in talks to buy a part of Exxon Mobil Corp.'s stake in Kazakhstan's Kashagan oil field. Tata Global Beverages soared over 4 percent and Steel Strips Wheels rose 1.7 percent on stake sale reports. Unity Infraprojects added nearly 2 percent on securing a Rs.100-crore order from a civic body of Madhya Pradesh. Thinksoft Global Services jumped 9 percent after the software testing firm said it plans to buy companies within the range of Rs.15-30 crore during the current financial year. |
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| | Forex Top Story | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | Dollar Hovers Near Monthly Lows, Bernanke Mum On Further Stimulus The dollar was mixed on Wednesday, after Federal Reserve Chairman Ben Bernanke gave no indication that policy makers were thinking about a third round of quantitative easing. In his first comments since last Friday's abysmal jobs report, Bernanke acknowledged Tuesday afternoon that the economy has been weaker than expected so far in 2011, but insisted that growth will pick up in the second half of the year. There was little reaction in the currency markets to Bernanke's speech, leaving the buck near its monthly lows versus a basket of key majors. The dollar slipped to Y79.75 versus the yen, its lowest since early May. A move below 79.55 would take the dollar to its lowest since the immediate aftermath of the March Japanese earthquake. The buck was slightly improved at $1.4630 versus the euro, compared to yesterday's monthly low of $1.4695. German industrial output unexpectedly declined in April owing to a slump in the construction industry, official data revealed Wednesday. The seasonally adjusted industrial production dropped 0.6 percent monthly in April, following a revised 1.2 percent gain in the previous month. The buck firmed to $1.6380 versus the sterling, up a penny from its overnight low. The U.K. could see a rating downgrade if economic growth remains weak and the government fails to meet its fiscal targets, the Market News International reported on Wednesday citing a senior analyst at Moody's Investor Service. The buck barely budged at CHF 0.8360 versus the Swiss franc, having touched a record low of 0.8326 earlier this week. The Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts, at 2 PM ET. The report is likely to show that conditions deteriorated, as almost all engines of growth hit snags. Of particular interest will be the outlook of manufacturers, given the recent slowdown in growth due to supply chain disruptions. |
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