вторник, 30 июля 2013 г.

Stock markets review, July 29

ASIA
Japanese stocks ended at their lowest level in more than a month Monday as a strengthened yen weighed down exporters, while economic worries hurt mainland Chinese shares.
 
The Nikkei Stock Average ended 3.3% lower for its lowest finish since June 27, while the Shanghai Composite fell 1.7%. Both benchmarks had also dropped in the previous three sessions.
 
The losses in Tokyo came ahead of a busy week of earnings, with Toyota Motor Corp., Honda Motor Co., Sony Corp. and Softbank Corp. due to announce their quarterly results and update their outlook.
 
On Monday, concerns over the U.S. dollar’s recent fall against the yen weighed on shares of companies with a large overseas exposure as the greenback slid under the ¥98-level. The yen rallied after BoJ Kuroda hinted that while fiscal consolidation is necessary, Japan's economy faces its biggest risk from outside the country, saying they are closely monitoring the situation in China to see if they achieve a 'soft landing. Kuroda also said the CPI growth rate, capex will gradually accelerate. On the sales tax, Kuroda said don't think raising the tax in two steps will hurt economic growth.
 
Meanwhile, official data released before the stock market’s open showed Japan’s retail sales climbed 1.6% in June from the year-ago month, though just short of forecasts.
 
Shares of Toshiba Corp. gave up 5% and Japan Tobacco Inc. lost 4.9%, while JFE Holdings Inc. slumped 6%, also weighed by a profit outlook that missed expectations.
 
Nomura Holdings Inc. slid 5.7% in the downbeat market, even as the broker reported a sharp surge in quarterly profits from the year-ago period. The stock is still up more than 50% so far in 2013.
 
Shares of Fanuc Corp. rose 2.1% after the industrial automation firm reported better-than-forecast fiscal first-quarter results.
 
Elsewhere in the region, South Korea’s Kospi ended 0.6% lower, while Australia’s S&P/ASX 200 ended 0.1% higher after a choppy trading session. Hong Kong’s Hang Seng Index declined 0.5%.
 
The drop in Shanghai and Hong Kong followed data from the National Bureau of Statistics over the weekend, showing that Chinese industrial profits rose 6.3% in June from the same month a year earlier. The increase marked a sharp slowdown from a 15.5% rise in profits in May.
 
The drop in Chinese equities also came after Beijing ordered China’s National Audit Office to conduct an urgent review of overall public debt.
 
Banks and property developers suffered declines, with Bank of Communications Co.  or BoCom, losing 1.8%, and China Resources Land Ltd. shed 2.9% in Hong Kong.
 
In Shanghai, BoCom fell 1.9%, and real-estate major Gemdale Corp. stumbled 4.2%.
 
EUROPE
European stocks closed little changed, trimming earlier gains.
 
The Stoxx Europe 600 Index added less than 0.1% to 299.06 at the close of trading, having earlier climbed as much as 0.7%. The gauge slipped 0.3% last week as earnings from BASF SE and ABB Ltd. missed estimates
 
The Stoxx 600 has rallied 4.9% in July, the biggest monthly gain since October 2011, as the Federal Reserve said it remains flexible on the pace of asset purchases.
 
Danone, the owner of Evian bottled water and Activia yogurt, climbed 3.2% as sales growth topped estimates. Elan Corp. rose 3.7% after agreeing to be bought for $8.6 billion. TNT slumped the most in six months as the Dutch package-delivery company posted a loss.
 
A gauge of banks in the benchmark Stoxx 600 posted the biggest retreat among 19 industry groups.
 
Banca Popolare di Milano Scrl led financial companies lower, retreating 5.9%.
 
Banca Monte dei Paschi di Siena SpA lost 4.6%.
 
Barclays Plc (BARC) fell 3.5% as Britain’s second-largest bank by assets considers selling shares or contingent convertible bonds.
 
TNT declined 4.6%, the largest drop since January. The company reported a second-quarter loss of 304 million euros ($403 million), after a profit of 39 million euros last year.
 
Ryanair Holdings Plc (RYA), Europe’s biggest discount airline, slipped 2.8% as first-quarter earnings dropped 21% on higher fuel costs and an early Easter travel season.
 
USA
U.S. stocks fell, paring a monthly gain for the Standard & Poor’s 500 Index, as fewer Americans signed contracts in June to buy previously owned homes.
 
The S&P 500 slipped 0.3% to 1,685.13. The equity benchmark lost less than 0.1% last week, halting its longest streak of weekly gains since May 17. The Dow Jones Industrial Average dropped 46.77 points, or 0.3 percent, to 15,512.06 today. The S&P 500 has climbed 4.9% this month.
 
The Fed has said economic data will determine the timing and pace of any reduction in its asset purchases. The central bank will probably maintain its benchmark interest rate at 0.25% after concluding its two-day policy-setting meeting on July 31, economists predicted. The Fed will begin to reduce its bond-purchase program in September, according to economists surveyed by Bloomberg.
 
Fewer Americans signed contracts in June to buy previously owned homes, showing rising mortgage rates are beginning to restrain the housing market. The index of pending home sales dropped 0.4%, less than forecast, to 110.9 in June after climbing a month earlier to the highest level since December 2006, figures from the National Association of Realtors showed today in Washington. The median forecast called for a 1% decline.
 
The week will offer further clues to the state of the economy, with the release of data on U.S. gross domestic product and the monthly labor report, as well as monetary policy announcements by the Fed and the European Central Bank.
 
Investors will also watch this week’s earnings from more than 130 companies listed on the S&P 500. Of the 265 companies in the S&P 500 that have posted results so far this earnings season, 73% have exceeded analysts’ estimates for profit and 56% have beaten sales projections, data show.
 
Energy stocks and financial companies lost more than 0.8% for the biggest declines among 10 industries in the S&P 500. Perrigo Co. fell 6.7% after saying it will buy Irish drugmaker Elan Corp. for $8.6 billion. Omnicom Group Inc. added 0.5% after agreeing to merge with France’s Publicis Groupe SA to create the world’s largest advertising company.
 
 
 

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