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| | US Market Reports |  | | Dow Jones | NASDAQ | NYSE | AMEX |  |  |  |  | | Please click on the images to view our interactive charts | | | Stocks are showing a lack of direction in early trading on Thursday as traders digest a mixed batch of economic data. The major averages have turned mixed after ending the previous session at their worst closing levels in over two months. Currently, the major averages are on opposite sides of the unchanged line, with the tech-heavy Nasdaq posting a modest loss. While the Nasdaq is down 2.70 points or 0.1 percent at 2,672.68, the Dow is up 25.65 points or 0.2 percent at 12,074.59 and the S&P 500 is up 2.06 points or 0.2 percent at 1,281.62. The choppy trading comes as traders react to a Labor Department report showing an unexpected uptick in weekly jobless claims as well as a Commerce Department report showing that the U.S. trade deficit unexpectedly narrowed in the month of April. The Labor Department report showed that initial jobless claims edged up by 1,000 to 427,000 from the previous week's revised figure of 426,000. The modest increase surprised economists, who had been expecting jobless claims to slip to 418,000 from the 422,000 originally reported for the previous week. Peter Boockvar, equity strategist at Miller Tabak, said, "Claims are now stubbornly above 400,000 for a 9th straight week and points to a still very lackluster labor market that was on full display when the May payroll figures were released last week." Separately, the Commerce Department said that the U.S. trade deficit narrowed to $43.7 billion in April from a revised $46.8 billion in March. Economists had expected the trade deficit to widen to $49.0 billion from the $48.2 billion originally reported for the previous month. The unexpectedly narrower deficit was largely due to a sharp drop in imports from Japan due to supply disruptions caused by the recent earthquake. While the narrower trade deficit for April may lead economists to raise their estimates for second quarter GDP growth, Paul Dales, Senior U.S. Economist at Capital Economics, said the drop in the deficit will eventually be reversed as the temporary effects caused by disruptions from Japan's earthquake fade. Most of the major sectors are showing only modest moves early on, contributing to the lackluster performance by the broader markets. Nonetheless, early strength has emerged among health insurance stocks, with the Morgan Stanley Healthcare Payor Index up by 1 percent. On the other hand, biotechnology stocks have come under pressure, dragging the NYSE Arca Biotechnology Index down by 1.2 percent. In overseas trading, stocks markets in the Asia-Pacific region closed mostly lower on Thursday, although Japan's Nikkei 225 Index bucked the downtrend once again, edging up by 0.2 percent. Hong Kong's Hang Seng dipped by 0.2 percent, while China's Shanghai Composite Index plunged by 1.7 percent. Meanwhile, the major European markets have all moved to the upside on the day. The U.K.'s FTSE 100 Index has edged up by 0.2 percent, while the French CAC 40 Index and the German DAX Index are up by 0.4 percent and 0.3 percent, respectively. In the bond market, treasuries are seeing modest strength in morning trading, adding to the gains posted in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.5 basis points at 2.939 percent. |
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| | Canadian Market Reports | | | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | TSX Poised To Open Higher Amid Firm Oil, Mixed Data Bay Street stocks may open higher Thursday amid rising oil prices and a mixed batch of economic data form both sides of the border. While Canadian new home prices resumed their climb in April after pausing in the previous month, first time claims for unemployment benefits in the U.S. unexpectedly showed a modest increase last week Meanwhile, U.S. trade deficit unexpectedly narrowed in the month of April, surprising economists. U.S. stock futures were moving higher after six days of losses. On Wednesday, the S&P/TSX Composite Index extended losses for a seventh session, shedding 99.13 points or 0.75 percent to 13,183.79. The price of crude oil rose above $101 Thursday morning after the OPEC yesterday failed to arrive at a consensus on hiking supplies. Yesterday, the OPEC said it is not increasing production quota as of now, belying analysts' expectations for a raise the quota to curb higher oil prices. Crude for July gained $0.48 to $101.22 a barrel. The price of gold was little changed amid a mixed U.S. dollar, with gold for August edging down $2.20 to $1,536.50 an ounce. In corporate news from Canada, diamond miner and luxury jewelry retailer Harry Winston Diamond (HW.TO) reported that its first-quarter net profit attributable to shareholders rose to $3.60 million or $0.04 per share, from $2.14 million or $0.03 per share in the same quarter of last year. Integrated tour operator Transat A.T. Inc. (TRZ_A.TO) posted second quarter net income of C$8.62 million or C$0.23 per share, up from C$6.2 million or C$0.16 per share last year. On an adjusted basis, the company reported after-tax loss of C$671,000 or C$0.02 per share, compared with after-tax loss of C$2.7 million or C$0.07 per share in the same quarter last year. Retails stores operator Dollarama Inc. (DOL.TO) reported higher first quarter net earnings of C$30.42 million or C$0.40 per share compared to C$22.47 million or C$0.30 per share last year. Base-metals miner Anvil Mining (AVM.TO) announced a sharp surge in first-quarter profit at $37.5 million, or $0.23 per share, compared to last year's $0.3 million, or break even per share. This year's result included a gain of $28.8 million on the reclassification of the company's investment in Mawson West Ltd. Grain handler Viterra Inc. (VT.TO) reported a much higher second quarter net earnings of C$33.07 million or C$0.09 per share compared to C$18.41 million or C$0.05 per share generated in the prior year, mainly due to strong contributions from its Australian operations. Entertainment company Canlan Ice Sports (ICE.TO) reported lower first quarter net earnings of C$1.8 million or C$0.14 per share compared to C$2.0 million, or C$0.15 per share in the year ago quarter. Video technology services provider March Networks (MN.TO) reported that its fourth quarter net loss narrowed to C$0.4 million or C$0.02 per share from C$27.5 million or C$1.58 per share in the prior year quarter. Natural resource company Northern Rand Resource (NRR.V) said it has changed its name to Suparna Gold Corp. and has also changed its stock-trading symbol on the TSX Venture Exchange to "SUG", effective June 09. In economic news, Statistics Canada said the New Housing Price Index rose 0.3 percent in April, following no change in March. Prices have been consistently rising since bottoming out in the wake of the 2008 global financial crisis. From south of the border, the U.S. Labor Department said that initial jobless claims edged up by 1,000 to 427,000 from the previous week's revised figure of 426,000. Economists had been expecting jobless claims to slip to 418,000 from the 422,000 originally reported for the previous week. Separately, the U.S. Commerce Department said that the trade deficit narrowed to $43.7 billion in April from a revised $46.8 billion in March. Economists had expected the trade deficit to widen to $49.0 billion from the $48.2 billion originally reported for the previous month. Meanwhile, the European Central Bank kept its key interest rates unchanged at 1.25 percent on Thursday, in line with expectations. Earlier today, the Bank of England left its key rates unchanged at 0.50 percent and said it will hold asset purchase program at GBP 200 billion. |
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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 Rise Ahead Of ECB Decision The European markets have been fluctuating on Thursday and are currently slightly to modestly higher, ahead of the interest rate decision from the European Central Bank. A rise in crude prices and low valuations, following recent losses, boosted investor sentiment in early trade. The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.15 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.06 percent. The German DAX is adding 0.22 percent and the French CAC 40 is gaining 0.07 percent. The UK's FTSE 100 is up 0.02 percent, while Switzerland's SMI is losing 0.12 percent. Among the DAX components, Infineon Technologies is declining 4.3 percent. Morgan Stanley downgraded the stock to "Equal-weight" from "Overweight" and reduced the price target to 8.80 euros from 9.40 euros. Commerzbank is falling 2.5 percent and Deutsche Bank is losing 0.8 percent. Citigroup raised Commerzbank to "Hold" from "Sell," but reduced the price target to 3.30 euros from 4.49 euros. HSBC increased its price target on Deutsche Post to 17 euros from 16.50 euros. The stock is falling 0.7 percent. Citigroup removed Basf and K+S from 'Most Preferred List.' K+S is down 0.3 percent, while Basf is adding 1 percent. Outside the main index, Kabel Deutschland is falling 2.8 percent. Citigroup lowered its rating on the stock to "Sell" from "Hold,"while Goldman Sachs cut its price target on the cable operator to 61.40 euros from 61.50 euros. However, UBS raised its price target on the stock to 45 euros from 41 euros. Automakers BMW and Volkswagen are notably higher, while Daimler is down 0.1 percent. In Paris, lenders Credit Agricole, BNP Paribas, Societe Generale and Natixis are losing between 1 percent and 0.3 percent. Suez Environnement is rising 2.3 percent, reportedly on a broker upgrade. Veolia Environnement is adding 0.7 percent. PPR is rising 0.7 percent. Barclays initaited the stock with "Overweight" rating and a price target of 136 euros. In London, Barclays is losing 1.5 percent and Lloyds Banking Group is falling 2.1 percent. Royal Bank of Scotland is declining 1.6 percent. The Bank of England held the key interest rate at 0.5 percent today. Anglo American and Antofagasta are moderately higher. BHP Billiton is slightly up, while Rio Tinto is falling 0.4 percent. Retailer Marks & Spencer is falling 1.4 percent. Next is falling 0.6 percent. Outside the main index, Home Retail is falling over 12 percent. The company said Argos sales were down 8 percent in the first quarter and issued a cautious full year outlook. Nestle is down 0.65 percent in Zurich. Barclays and Credit Suiisee reduced their price targets on the stock. Nokia is slightly down in Helsinki. HSBC cut its price target on the stock to 4.40 euros from 6.50 euros. Across Asia/Pacific, Australia's All Ordinaries added 0.28 percent and Japan's Nikkei 225 gained 0.19 percent. China's Shanghai Composite Index and Hong Kong's Hang Seng lost 1.71 percent and 0.23 percent, respectively. In the U.S., futures point to a higher open on Wall Street. In the previous session, all the major averages closed in negative territory, although the tech-heavy Nasdaq underperformed its counterparts. The Dow edged down 0.2 percent, while the Nasdaq fell 1 percent and the S&P 500 slid 0.4 percent. In the commodity space, crude for July delivery is rising $0.52 to $101.26 per barrel after OPEC Wednesday unexpectedly left its production quotas unchanged. Analysts had expected the 12-member group to boost production in an effort to cool off oil prices and take some pressure off the world economy. August gold is sliding $2.1 to $1536.6 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 Little Changed The Indian market ended a range-bound session modestly lower on Thursday, as lingering concerns about global growth continued to spook investors. Also, a spike in crude prices overnight after a rare display of acrimony and disagreement at OPEC talks on lifting production and domestic data that showed India's food inflation accelerated to an eight-week high in late May rekindled inflation and interest rate worries ahead of the RBI's monetary policy review meeting due next week. Industrial output data that will be out tomorrow is likely to offer further clues on future interest rate hikes. The benchmark 30-share Sensex moved in the range of 18,450- 18,327 before ending down 9 points or 0.05 percent at 18,385, while the broader Nifty index eased 6 points or 0.1 percent to 5,521. Second-line stocks also saw little change and the market breadth was slightly negative. Sector-wise, auto, healthcare, IT and banking stocks drifted down, while consumer durable, capital goods and power stocks witnessed stock-specific buying. As per government data released today, annual food inflation for the week ended May 28 rose sharply to 9.01 percent versus 8.55 percent a week before, as prices of essential items like fruits, meat, milk and onions increased. The latest numbers are the highest level of food inflation since the week ended March 26 when it stood at 9.18 percent. Among the prominent decliners, state-run oil firm ONGC fell 1.8 percent and Oil India lost 0.8 percent after a Comptroller and Auditor General (CAG) report revealed that the companies have suppressed gas production figures, leading to a loss of royalty of at least Rs.865.99 crore to the Assam state. Tata Motors declined 0.8 percent, weighed by widening spreads on its credit default swaps in the past one month. Maruti Suzuki shed 0.7 percent after a strike at its Manesar plant entered the fifth day. Bharti Airtel slipped 0.1 percent amid reports that it is holding talks to share infrastructure in Africa. Rival Reliance Communication lost 1.3 percent on profit taking after rising yesterday on talk of tower asset sale. Hindalco, HDFC, Reliance Infrastructure, Hero Honda Motors, SBI and Jaiprakash Associates fell between 0.6 percent and 1.9 percent. MTNL ended down 0.6 percent and HCL Infosystems slumped 5.7 percent on talk of CBI investigation in connection with irregularities in the Commonwealth Games scam. Asian Paints fell 3.5 percent on going ex-dividend. Cox & Kings rose 2.3 percent after fixing the record date for a stock split. Power producer NTPC rose 1.7 percent, engineering & construction giant Larsen & Toubro gained 1.3 percent, power equipment maker BHEL added 0.9 percent, energy giant Reliance Industries edged up 0.7 percent and software exporter TCS closed up 0.6 percent. Elsewhere, most Asian stock markets fell for a sixth consecutive session on Thursday on concerns about the global economic outlook after Federal Reserve Chairman Ben Bernanke said the U.S. recovery was lagging. China's Shanghai Composite index snapped three consecutive days of gains to end about 1.7 percent lower, as speculation spread that the People's bank of China will raise interest rates again on Friday at the earliest. European stocks extended recent declines after a steady start ahead of an interest rate setting meeting of the European Central Bank, at which president Jean-Claude Trichet is expected to signal a hike in interest rates as early as next month. Crude futures traded firm above $100 a barrel after OPEC unexpectedly left its production levels unchanged and a U.S. government report showed crude supplies dropped the most since December. |
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| | Forex Top Story | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | European Central Bank Keeps Rates Unchanged The European Central Bank kept its key interest rates unchanged on Thursday, in line with expectations, but at the post-meeting press conference, the central bank chief is expected to signal a rate hike for July. The Governing Council kept the main refinancing rate at 1.25 percent at the meeting held in Frankfurt. The rate on the marginal lending facility was retained at 2 percent, while the rate on the deposit facility was left unchanged at 0.50 percent. In April, the central bank delivered its first rate hike in nearly three years amid spreading debt woes in the Eurozone periphery. The central bank lifted its key interest rate by 25 basis points from a record-low. During the post-announcement press conference due to start at 8.30 am ET, ECB President Jean-Claude Trichet is expected to signal a hike for July. Although the central bank never pre-commits, he is widely expected to use some code words such as "strong vigilance" to suggest the next hike. "Although activity data across the region have had a rather softer tone in recent weeks, that is unlikely to have eased the ECB's inflation worries by enough to bring the tightening to a halt after just a single hike (in April)," said Jonathan Loynes, an economist at Capital Economics. "The bank will want to send another signal that it is not prepared to set conventional monetary policy to accommodate the peripheral economies' problems when both growth and price pressures in the core are quite strong." Economists are looking forward to more rate hikes beyond the possible one in July. Growth in the single-currency economy appears to be slowing, but inflation remains high, supporting calls for more tightening. The ECB staff's latest macroeconomic projections are set to be announced during the press conference, and they are expected to be upwardly revised. Trichet is also expected to reveal some changes to the central bank's liquidity support measures. The central bank is expected to continue providing unlimited liquidity to lenders against the backdrop of rising market concerns about the Greek debt crisis. Greece, which became the first recipient of an IMF-European Union sponsored bailout worth EUR 110 billion last year, is expected to receive the next tranche of bailout totaling EUR 12 billion in July. Athens has agreed to implement a medium-term fiscal strategy, which would be the basis for further aid. Meanwhile, Eurozone finance ministers are set to discuss a second rescue package for Greece on June 20. The size of the new bailout is estimated between EUR 70 billion and EUR 100 billion, reports said. The approval for the new bailout is likely to be delayed as there is resistance from within Eurozone. There are calls for private sector investor participation in the new deal, a proposal over which which Germany, ECB are at loggerheads. The rift has widened between Germany and ECB after the German finance minister Wolfgang Schaeuble sent a letter this week to his Eurozone counterparts and the central bank asking for substantial contribution from the private sector. Trichet is worried that such a move could result in another Lehman-style financial crisis. |
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