Morning Update - In Asian Equity Markets Japanese stocks fell for a second day as the yen traded at a four-week high against the dollar, buoyed by falling global risk sentiment on a continued slide in commodity prices as copper plunged. The Topix (TPX) Nonferrous Metals Index sank 4.1% as copper fell the most in six years. Sumitomo Metal Mining Co. plunged 8.1% while Mitsui Mining (5706)& Smelting Co. lost 5.1%. Toyota Motor Corp. (7203), an automaker that gets more than three-quarter of its revenue from overseas, slid 1.6% as the yen gained for a fourth day, damping the outlook for export earnings. Bic Camera Inc. rose 0.7% after the electronics retailer reported better-than-expected earnings. The Topix slid 1.2% to 1,357.98 at the close in Tokyo, accelerating declines in the morning session as copper fell.The Nikkei 225 Stock Average dropped 1.7% to 16,795.96. T In Currency Markets the yen rose beyond 117 per dollar, gaining for a fourth day, as Japanese stocks fell following declines in oil and copper to the lowest levels since 2009. Japans currency advanced against all its 16 major counterparts as the nations stock benchmark dropped for a second day. Australias currency was poised for its steepest slide since Jan. 2 as the drop in copper signaled weakening demand for the countrys commodities. The euro was 0.3% from a nine-year low as Richard Clarida of Pacific Investment Management Co. said he sees it falling to parity amid speculation the European Central Bank will begin buying government bonds to stave off deflation. The yen rose 0.8% to 116.99 per dollar at 7:00 a.m. in London from yesterday. It strengthened for a fifth day against the euro, climbing 0.6% to 137.96 yen. In Commodities Markets oil fell for a fourth day, extending losses from the lowest close in more than five and half years as the United Arab Emirates and Kuwait predicted a global supply glut will persist to at least the second half of 2015. Futures dropped as much as 1.5% in New York. The market may recover only when demand improves later this year, Ali Al Yabhouni, the U.A.E.s governor to the Organization of Petroleum Exporting Countries, said yesterday. Crude stockpiles in the U.S., the worlds biggest oil consumer, probably expanded further above seasonal levels last week, a Bloomberg News survey shows before a government report today. West Texas Intermediate for February delivery fell as much as 68 cents to $45.21 a barrel in electronic trading on the New York Mercantile Exchange and was at $45.25 at 3:00 p.m. Singapore time. In US Equity Markets stocks ended down in a volatile session on Tuesday, led by a drop in materials and energy shares following further weakness in commodity prices and as the S&P 500 broke below a key technical level. Energy shares in the S&P 500 sank 0.7% today after a 2.8% slump yesterday that dragged the broader S&P 500 down 0.8%. The benchmark gauge has dropped 3.5% since reaching a record in December. Housing shares slumped after KB Home (KBH), a U.S. house builder, said that its first-quarter margins will contract. The stock plunged as much as 19%, the most intraday in more than three years. The S&P homebuilder index retreated 3.2%, the biggest drop in a month. D.R. Horton Inc. sank 4.8% and Lennar Corp. lost 1.7%. The Dow ended the session down 0.2%, while the Standard & Poors 500 Index fell 0.3%, after earlier jumping as much as 1.4%. In Bond Markets Treasuries rose, pushing 30-year yields toward a record low and sending 10-year yields to the least since May 2013, as falling commodity prices cut the outlook for inflation. U.S. long bonds have surged amid a 2015 rally in bonds around the world, returning 5.6%, Bank of America Merrill Lynch data show. The securities are on track for their biggest monthly gain in a year. The U.S. is scheduled to sell $13 billion of 30-year debt today. Plunging oil prices suggest inflation will hold in check, and copper joined in the commodities rout today. The U.S. 30-year yield fell four basis points to 2.46% as of 7:00 a.m. in London. Benchmark 10-year yields declined four basis points to 1.86%. Japans 10-year bond yield fell to an unprecedented 0.25%. Australias extended its decline to an all-time low of 2.57%. European Pre-Market Upgardes/Downgrades TEMP POWER, TIC SUBSECTORS CUT TO NEUTRAL VS OVERWEIGHT AT CITI TESCO (TSCO LN) RAISED TO OUTPERFORM VS NEUTRAL AT EXANE STANDARD CHARTERED (STAN LN) ADDED TO UBS LEAST PREFERRED LIST BOOKER GROUP (BOK LN) RATED NEW EQUALWEIGHT AT MORGAN STANLEY NATIONAL GRID (NG/ LN) CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE MICHAEL PAGE (MPI LN) RAISED TO BUY VS NEUTRAL AT CITI HAMMERSON (HMSO LN) RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN INTU PROPERTIES (INTU LN) RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN TUI AG (TUI LN) RATED NEW OVERWEIGHT AT JPMORGAN PEARSON (PSON LN) RAISED TO NEUTRAL VS SELL AT GOLDMAN ARM (ARM LN) RAISED TO MARKETPERFORM VS UNDERPERFORM AT BERNSTEIN EDF (EDF FP) CUT TO UNDERPERFORM VS NEUTRAL AT EXANE JCDECAUX (DEC FP) CUT TO SELL VS NEUTRAL AT GOLDMAN ICADE (ICAD FP) RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN KLEPIERRE (LI FP) RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN BIOMERIEUX (BIM FP) RAISED TO BUY VS NEUTRAL AT ODDO DEUTSCHE BANK (DBK GY) EXITS UBS LEAST PREFERRED LIST, STAYS NEUTRAL COMMERZBANK (CBK GY) CUT TO SELL VS NEUTRAL AT GOLDMAN LEONI (LEO GY) RATED NEW OVERWEIGHT AT JPMORGAN APR ENERGY (AOX GY) CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN TLG IMMOBILIEN (TLG GY) RATED NEW NEUTRAL AT JPMORGAN, PT EU15 ALTICE (ATC NA) CUT TO NEUTRAL AT HSBC GAS NATURAL (GAS SM) CUT TO NEUTRAL VS OUTPERFORM AT EXANE AEGON (AGN NA) RAISED TO BUY VS NEUTRAL AT CITI BANKIA (BKIA SM) ADDED TO UBS MOST PREFERRED LIST SABADELL (SAB SM) ADDED TO UBS LEAST PREFERRED LIST BENI STABILI (BNS IM) CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN TELEKOM AUSTRIA (TKA AV) RAISED TO OVERWEIGHT VS UNDERWEIGHT AT HSBC
Posted on: Wed, 14 Jan 2015 07:53:31 +0000
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