Pre Market: crude oil prices slid again
(MENAFN- ProactiveInvestors - UK) Proactive Investors 09:52
UK Market Snapshot
UK markets closed sharply lower yesterday amid worries about slowdown in global economic growth and as crude oil prices slid again. BG Group Royal Dutch Shell BP and Tullow Oil shed 0.5% 0.9% 1.9% and 6.0% respectively. HSBC Holdings fell 4.2% after news emerged that it would make a decision this week whether to shift its headquarters outside the UK or not. Rolls-Royce Holdings declined 2.7% on the back of reports that it would announce a cut in its dividend. Imagination Technologies Group slid 1.9% trimming its earlier plunge after stating that it would incur a loss for the full year. On the brighter side Randgold Resources soared 13.2% after it raised its dividend payout following a record production in 2015. Peer Fresnillo climbed 7.8% as gold prices rallied. The FTSE 100 declined 2.7% to close at 5689.4 while the FTSE 250 fell 3.2% to settle at 15498.0.
US Market Snapshot
US markets ended lower yesterday with the S&P 500 index recording its lowest close since April 2014 and the Nasdaq Composite approaching a bear market territory following a rout in financial and technology stocks. Goldman Sachs Group Citigroup Bank of America Comerica and Morgan Stanley dropped 4.6% 5.1% 5.3% 6.6% and 6.9% respectively. Amazon.com Facebook and salesforce.com fell 2.8% 4.2% and 7.6% respectively. BioCryst Pharmaceuticals sank 71.0% after it reported disappointing results from its clinical trials for a drug meant to treat rare genetic disorder. Chesapeake Energy tanked 33.3% amid concerns over its draining cash reserves. On the contrary Apollo Education Group surged 24.0% as it would be converted into a private firm after getting acquired by a group of investors for $1.1 billion. The S&P 500 fell 1.4% to settle at 1853.4. The DJIA shed 1.1% to settle at 16027.1 while the NASDAQ declined 1.8% to close at 4283.8.
Europe Market Snapshot
Other European markets closed in the red yesterday led by a sell-off in banking shares amid concerns over health of the global economy. Greek lenders Alpha Bank and Eurobank Ergasias sank 17.7% and 29.2% respectively. Commerzbank tumbled 7.4% after a broker downgraded its rating on the lender to the equivalent of a sell. Energy sector stocks Subsea 7 Seadrill and Saipem tanked 5.8% 14.5% and 25.3% respectively. Assa Abloy plunged 9.8% after it reported a drop in its sales from China in the fourth quarter. Novozymes dropped 4.3% as it decided to split into three divisions. On the upside Casino Guichard-Perrachon gained 2.7% after it sold its stake in Big C Supercenter for 3.1 billion. The FTSEurofirst 300 index declined 3.4% to close at 1239.7. Among other European markets the German DAX Xetra 30 dropped 3.3% to close at 8979.4 while the French CAC-40 fell 3.2% to settle at 4066.3.
Asia Market Snapshot
Markets in Asia are trading sharply lower this morning following a rout in global stock markets. In Japan banks Mizuho Financial Group Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group have plunged 5.9% 7.8% and 8.3% respectively amid profit concerns due to the BoJ's negative interest rates policy. Auto exporters Toyota Motor Nissan Motor and Mazda Motor have fallen 4.4% 6.7% and 8.3% respectively amid a stronger Japanese Yen. Oil firms Inpex and Japan Petroleum Exploration have dropped 5.4% each on lower crude oil prices. Markets in Hong Kong and South Korea are closed today for the Lunar New Year. The Nikkei 225 index is trading 5.0% lower at 16150.2.
Commodity Currency and Fixed Income Snapshots
Crude Oil
At 0430GMT today Brent Crude Oil one month futures contract is trading 0.36% or $0.12 higher at $33.00 per barrel. Yesterday the contract declined 3.46% or $1.18 to settle at $32.88 per barrel amid persistent fears over global oil supply glut.
Gold
At 0430GMT today Gold futures contract is trading 0.37% or $4.40 lower at $1193.50 per ounce. Yesterday the contract advanced 3.46% or $40.10 to settle at $1197.90 per ounce as a turmoil in the global stock markets triggered demand for the safe-haven yellow metal.
Currency
At 0430GMT today the EUR is trading 0.18% higher against the USD at $1.1211 ahead of the German industrial production and trade balance data both for December scheduled to be released in a few hours. Yesterday the EUR strengthened 0.33% versus the USD to close at $1.1190 reversing its previous session losses.
At 0430GMT today the GBP is trading marginally lower against the USD at $1.4424 ahead of UK's total trade balance figures for December slated for release in a few hours. Yesterday the GBP weakened 0.5% versus the USD to close at $1.4428 continuing with its weakness.
Fixed Income
In the US long term treasury prices rose and pushed yields sharply lower as investors turned to risk-free government bonds amid a rout in the global equity markets. Yesterday yield on 10-year notes plunged 11 basis points to 1.75% while yield on 2-year notes tumbled 8 basis points to 0.66%. Meanwhile 30-year bond yield tanked 12 basis points to 2.56%.
Key Economic News
UK retail sales across all sectors advanced more than expected in January
Retail sales across all sectors in the UK advanced 2.60% in January on a YoY basis higher than market expectations for a rise of 0.30%. In the previous month retail sales across all sectors had advanced 0.10%.
Euro-zone investor confidence index dropped in February
In February the investor confidence index recorded a drop to 6.00 in the Euro-zone compared to market expectations of a fall to 7.40. In the previous month the investor confidence index had recorded a reading of 9.60.
French business sentiment index advanced surprisingly in January
The business sentiment index climbed unexpectedly to 101.00 in January in France compared to a revised reading of 100.00 in the prior month. Markets were expecting the business sentiment index to ease to a level of 99.00.
Spanish calendar adjusted industrial output advanced less than expected in December
On an annual basis the calendar adjusted industrial output in Spain advanced 3.70% in December lower than market expectations for an advance of 4.10%. The calendar adjusted industrial output had advanced by a revised 4.30% in the previous month.
Canadian building permits advanced more than expected in December
Building permits in Canada registered a rise of 11.30% in December on a MoM basis higher than market expectations for a rise of 6.20%. Building permits had dropped by a revised 19.90% in the prior month.
Japanese money supply M2+CD advanced more than expected in January
In January money supply M2+CD recorded a rise of 3.20% on an annual basis in Japan more than market expectations for an advance of 3.10%. In the prior month money supply M2+CD had registered a revised rise of 3.10%.
Japanese Eco Watchers Survey for current situation dropped in January
Eco Watchers Survey for the current situation dropped to 46.60 in Japan in January compared to market expectations of a drop to a level of 48.40. In the previous month Eco Watchers Survey for the current situation had recorded a reading of 48.70.
Japanese M3 money supply rose as expected in January
In January on an annual basis M3 money supply in Japan advanced 2.50% at par with market expectations. M3 money supply had registered a similar rise in the prior month.
Japanese Eco Watchers Survey for future outlook climbed in January
Compared to a reading of 48.20 in the previous month Eco Watchers Survey for the future outlook advanced to 49.50 in January in Japan. Markets were expecting Eco Watchers Survey for the future outlook to climb to a level of 48.40.
Japanese corporate bankruptcies registered a drop in January
Corporate bankruptcies dropped 6.38% on a YoY basis in January in Japan. Corporate bankruptcies had recorded a rise of 1.89% in the prior month.