8th January 2012 News

Day ahead

10:00: Eurozone - Consumer Confidence, Unemployment, Retail Sales, Business     Climate, Economic Confidence, Industrial Confidence, Services Confidence

-11:00: Germany - Factory Orders

-12:30: US - NFIB Small Business Optimism

U.S News

U.S. stocks fell, after the Standard & Poor’s 500 Index climbed to a five-year high, as investors awaited the start of the corporate earnings season tomorrow.

The S&P 500 fell 0.3 percent to 1,461.89 at 4 p.m. New York time. The Dow Jones Industrial Average lost 50.92 points, or 0.4 percent, to 13,384.29. About 5.8 billion shares changed hands on U.S. exchanges, 5 percent below the three-month average.

Eight out of 10 groups in the S&P 500 retreated today as utility and energy companies had the biggest losses, dropping at least 0.8 percent. Telephone and health-care providers advanced more than 0.3 percent.

Asian News

Asian stocks fell, sending the regional benchmark index lower for a second day, as Japanese exporters declined after the yen strengthened and as earnings results from HTC Corp. missed estimates.

Japan’s Nikkei 225 (NKY) Stock Average climbed 22 percent through yesterday from Nov. 14 when elections were announced, driving the gauge into a bull market as the yen fell on expectations a new government would call for more stimulus

Samsung dropped 1.3 percent to 1.501 million won, after rising to a record last week. HTC declined 4 percent to NT$276.5 in Taipei. Operating income was NT$600 million ($21 million) in the fourth quarter, compared with the NT$1.11 billion average of 20 analyst estimates compiled by Bloomberg

China’s B shares rallied for a 15th day, the longest stretch of gains in two decades, on speculation more companies will move their listings to Hong Kong in an effort to lure investors and boost their valuations.

 

European News

European (SXXP) stock-index futures declined as German exports fell and investors awaited the start of the fourth-quarter U.S. earnings season

Anglo American (AAL) Plc might move after the mining company appointed a new chief executive officer. Intesa Sanpaolo SpA (ISP) and Banca Monte dei Paschi di Siena SpA (BMPS) may retreat after JPMorgan Chase & Co. cut its recommendations on the shares.

Futures on the Euro Stoxx 50 Index fell 0.3 percent to 2,679 at 7:14 a.m. in London. Contracts on the U.K.’s FTSE 100 Index (UKX) slipped 0.1 percent.

A report at 10 a.m. London time may show the final reading of euro-area economic confidence was at minus 26.6 in December, according to economists’ estimates compiled by Bloomberg.

Currencies

The yen headed for its biggest two-day gain since November, extending a rally from its 2 1/2 year low on speculation recent declines were excessive.

The dollar may advance to 94 yen, the strongest since May 2010, after a short-term setback this week, UBS AG said, citing trading patterns

The euro maintained two days of gains versus the dollar amid speculation the European Central Bank will refrain from cutting borrowing costs this week. The euro bought $1.3108 from $1.3117, after gaining 0.5 percent over the previous two days.

India’s rupee will rise at least 10 percent in 2013, its biggest gain in six years, as central bank interest-rate cuts spur growth in Asia’s third-largest economy, according to the most-accurate forecaster.

Bonds

Treasuries are off to their worst start to a year since 2009 as money managers prepared to bid at three debt sales this week, starting with a $32 billion note auction today. U.S. government securities handed investors a 0.7 percent loss in 2013 as of yesterday, according to Bank of America Merrill Lynch indexes.

Commodities

Gold gained, rebounding from a three-day drop that touched the lowest price in more than four months, on signs of increased demand in China and as the dollar weakened.

Spot gold rose as much as 0.4 percent to $1,653.05 an ounce, and was at $1,649.30 at 11:38 a.m. in Singapore

Gold for February delivery advanced 0.2 percent to $1,649.30 an ounce on the Comex. Holdings

Cash silver rose 0.2 percent to $30.2073 an ounce, after dropping to the lowest since August on Jan. 4. Spot platinum was little changed at $1,556.50 an ounce after three days of losses. Palladium was also little changed at $669.75 an ounce.

Oil traded near the highest level in almost four months in New York before a government report that may show refinery utilization rose and stockpiles increased in the U.S