Market news

16 July 2012

Stocks: Friday’s review

Asian stocks rose, with the benchmark index poised to snap six days of losses, on speculation policy makers will do more to support growth after China reported the slowest expansion in three years, South Korea cut its outlook and Singapore said its economy shrank.

Nikkei 225 8,724.12 +4.11 +0.05%

Hang Seng 19,092.63 +67.52 +0.35%

S&P/ASX 200 4,082.25 +14.28 +0.35%

Shanghai Composite 2,185.9 +0.40 +0.02%

Hyundai Motor Co., South Korea’s biggest carmaker, rose 3.4 percent after workers agreed to resume wage negotiations, averting a threatened a strike.

Belle International Holdings Ltd., a women’s shoe retailer that gets most of its revenue from China, climbed 3.8 percent in Hong Kong after reporting sales jumped.

Dentsu Inc., a Japanese advertising company, sank 7 percent after agreeing to buy Britain’s Aegis Group Plc.

Chinese airlines rose after the Shanghai Daily reported the government may set up investment companies to buy airline stakes

European stocks rose for a sixth week as China’s slowest expansion in three years fueled speculation policy makers will add to stimulus measures and Italy’s borrowing costs fell at an auction.

Storebrand ASA (STB), Norway’s second-largest publicly traded insurer, rallied 8.2 percent after saying it will meet capital requirements without selling shares. Temenos Group AG (TEMN) rebounded 5.9 percent. PSA Peugeot Citroen (UG) slumped to the lowest price since at least 1989 over concerns that the French government may step in after Europe’s second-largest carmaker announced plans to close a factory and cut jobs.

The Stoxx Europe 600 Index added 1.3 percent to 256.26 at the close of trading.

National benchmark indexes gained in all of the 18 western- European (SXXP) markets except Iceland.

FTSE 100 5,666.13 +57.88 +1.03% CAC 40 3,180.81 +45.63 +1.46% DAX 6,557.1 +137.75 +2.15%

Italian borrowing costs fell at an auction today, hours after Moody’s Investors Service downgraded the country’s bond rating by two levels to Baa2 from A3 and reiterated its negative outlook, citing the worsening political and economic situation.

Storebrand, Norway’s second-largest publicly traded insurer, rallied 8.2 percent to 24.01 kroner. The company said it will cut costs by at least 400 million kroner ($66 million) by 2014 and meet stricter European capital requirements without selling new shares.

Temenos Group AG gained 5.9 percent to 10.85 francs. The banking-software maker plunged the most in 3 1/2 years yesterday as it cut its revenue-growth forecast and said its chief executive officer will step down.

Deutsche Telekom AG (DTE) gained 5.7 percent to 9.18 euros after Credit Suisse Group AG raised its rating on the company’s shares to neutral from underperform.

Elisa Oyj (ELI1V), Finland’s largest wireless carrier by subscribers, jumped 5.7 percent to 16.80 euros as second-quarter sales of 389 million euros beat the average 384.2 million-euro analyst estimate.

Nokia Oyj (NOK1V) fell 2.5 percent to 1.51 euros after the mobile- phone maker struggling to recover lost market share said it will close two of its four regional distribution centers in China as part of a restructuring plan it announced last month to halt mounting losses from plunging smartphone sales. Nokia on June 14 said it would cut as many as 10,000 jobs globally and close facilities.

Deutsche Bank AG slipped 1.9 percent to 25.60 euros and Bankia SA declined 7 percent to 65.1 euro cents.

Booker Group Plc (BOK), the largest U.K. food wholesaler, slumped 2.6 percent to 88.95 pence after Shore Capital Group Ltd. cut the stock to sell from hold.

U.S. stock indices ended the session in the area of ​​maximum values
Indices provide support for the expectations of new measures by the Chinese government to stimulate the national economy, the power of the shares of banking institutions, after the return of one of the largest banks in the U.S. and the world JPMorgan Chase and Co (JPM) was
better than expected, and reduced fears of worsening debt crisis in Europe.
Today's statistics showed that by the end of the 2nd quarter of China's GDP grew by 7.6% year on year. The average forecast was at 7.9% after rising 8.1% in the previous quarter. Data on China's GDP growth expectations have led market participants about the new measures by the Chinese government to stimulate the growth of national economy. Against this background of increased commodity prices.
Today, a representative of the Spanish government announced the decision to reduce spending in 2012. It has also been said about the decision to increase the competitiveness of the economy, administrative reform, pension reform.
In the composition of all components of the DOW index with the exception of shares Hewlett-Packard Company (HPQ, -2.07%) are in positive territory. Show the greatest growth stocks:
JPMorgan Chase & Co. (JPM, +5.79%)
Bank of America Corporation (BAC, +4.21%)
Caterpillar Inc. (CAT, +2.83%)
Microsoft Corporation (MSFT, 2.72%)
At the same time, support for the shares JPMorgan (JPM) has issued a quarterly report.
The reason for selling shares of HPQ is a published report of a competitor in the market of printers Lexmark International Inc., Which has reduced its forecasts for sales and earnings for the second quarter.
Note that the last report, Gartner noted decrease in sales in the PC market, where HP is still a major player.
Branches in the context of the S & P 500 all sectors demonstrate a positive trend. Maximum growth demonstrates the financial sector (+2.0%) and the conglomerate sector (+1.9%).
At the time of closure:
Dow 12,767.74 +194.47 +1.55%
Nasdaq 2,908.36 +42.17 +1.47%
S & P500 1,356.14 +21.38 +1.60%

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