Market Review: US stocks down on mixed macroeconomic data …

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Forex: USD trading mixed

_{Source: Bloomberg}

The USD is trading mixed against its major counterparts. Data released indicated that US economy grew at a level below market expectations in the fourth quarter of 2013, though it expanded more than previously estimated. Additionally, pending home sales in the US dropped unexpectedly in February, sparking concerns over the US housing sector. However, better than expected weekly US initial jobless claims supported the greenback to some extent. The GBP is trading higher against the USD after data revealed that retail sales in the UK increased more than anticipated in February, indicating that the UK economy is gaining traction. The EUR is trading 0.5 percent lower against the GBP and it is trading 0.3 percent lower against both the USD and the JPY.

The AUD is trading 0.4 percent higher against the USD.

UK Stocks: Finish lower

_{Source: Bloomberg}

UK stocks ended in the red led by declines in resource sector stocks.

The FTSE 100 and the FTSE 250 declined 0.3 percent each, to close at 6588.3 and 16202.2, respectively.

Glencore Xstrata (GLEN) declined 1.3 percent after the company stated that it will shut down one of its Australian coal mines this year and following a broker downgrade to hold from buy.

Fresnillo (FRES), African Barrick Gold (ABG) and Randgold Resources (RRS) declined between 2.6 percent and 4 percent, tracking a drop in precious metal prices.

Babcock International Group (BAB) slumped 6.7 percent after the company agreed to acquire the helicopter services provider, Avincis, for GBP 920 million.

Tullow Oil (TLW) declined 2.3 percent after indicating that its exploration wells in Kenya failed to provide positive drilling results.

On the other hand, Cairn Energy (CNE) advanced 3.7 percent after a broker raised its rating on the stock to buy from neutral.

US Stocks: Trading lower

_{Source: Bloomberg}

US stocks are trading in the red as losses in technology and financial sector stocks offset a jump in energy sector shares.

The Dow Jones has fallen 0.1 percent to trade at 16252.1 and the S&P 500 has shed 0.4 percent to trade at 1844.5.

Accenture (ACN) has dropped 6.7 percent following lower than expected second quarter earnings.

Citigroup (C) has declined 5.6 percent after the lender’s capital plan failed the Federal Reserve’s stress tests.

GameStop Corporation (GME) has lost 6.2 percent after the company forecast full year profit below market estimates and stated that it would reduce the number of its video-game stores.

On the contrary, Baxter International (BAX) has jumped 5.4 percent after the company stated that it plans to split into two entities.

Alcoa (AA) has climbed 4.8 percent after the UK court ruled against a pending London Metal Exchange warehousing rule.

European Stocks: Close mixed

_{Source: Bloomberg}

European markets finished mixed as investors tracked a mixed batch of US macroeconomic reports.

The DAX rose 2.6 points to end at 9451.2 while the CAC lost 0.1 percent to close at 4379.1.

Alstom SA (ALO) dropped 4.9 percent amid reports that the US Justice Department would examine the company’s power projects in China and India in relation to a bribery case.

Hennes & Mauritz AB (HMB) declined 4.3 percent following weaker than expected first quarter net income.

SMA Solar Technology AG (S92) slumped 5.5 percent after the company reported a wider than expected net loss for 2013.

Salzgitter AG (SZG) lost 1.2 percent after a broker lowered its rating on the stock to neutral from outperform.

On the upside, United Internet AG (UTDI) jumped 5 percent following a rise in its full year sales and operating earnings.

JCDecaux SA (DEC) added 0.8 percent after a broker raised its rating on the stock to outperform from neutral.

Asia: Indices close mixed

_{Source: Bloomberg}

Asian markets ended mixed.

In Japan, Seven & I Holdings (3382) jumped 5.1 percent following reports that the company would take control of hundreds of shops in train stations in partnership with West Japan Railway (9021). Toyota Motor (7203) advanced 2 percent after the company announced a share buyback programme of about JPY 360 billion. Peers, Mazda Motor (7261) and Suzuki Motor (7269) added 2.8 percent and 0.4 percent, respectively. On the contrary, ITOCHU (8001) declined 3.8 percent after a broker lowered its rating on the stock. The Nikkei 225 index climbed 1 percent to end at 14622.9.

In China, Huayi Brothers Media Corporation (300027) dropped 5.3 percent despite reporting a rise in its full year net profit. In Hong Kong, Tencent Holdings (700) declined 5.9 percent after the company agreed to acquire a 28 percent stake in South Korea’s CJ Games. In South Korea, Samsung Electronics (005930) and SK Telecom Company (017670) added 3.8 percent and 2.1 percent, respectively, after the latter launched the former’s newest flagship smartphone.

Commodities: Trading mixed

The Gold futures contract is trading 0.5 percent lower at USD 1296.4 per ounce following continued speculation that the US Federal Reserve would hike interest rates sooner than expected and amid technical selling pressure.

The Brent crude one-month futures contract is trading 0.5 percent higher at USD 107.6 per barrel following concerns about potential supply disruptions amid possibility of US sanctions on Russia’s energy sector.

MacroUpdate

US economy expands below market estimates in the fourth quarter of 2013
US initial jobless claims decline surprisingly in the previous week
US pending home sales drop unexpectedly in February
US Kansas Fed manufacturing activity surges in March

Economic Calendar

Country

GMT

Economic Indicator

Relevance

Consensus/
*Actual

Previous/
**Previous Est.

Frequency

Japan

23:30

National Consumer Price Index (YoY) (Feb)

Medium

1.50%

1.40%

Monthly

Japan

23:30

National CPI Ex-Fresh Food (YoY) (Feb)

Medium

1.30%

Monthly

Japan

23:30

National CPI Ex Food, Energy (YoY) (Feb)

Medium

0.80%

0.70%

Monthly

Japan

23:30

Tokyo Consumer Price Index (YoY) (Mar)

Low

1.20%

1.10%

Monthly

Japan

23:30

Household Spending (YoY) (Feb)

Medium

0.10%

1.10%

Monthly

Japan

23:30

Unemployment Rate (Feb)

Medium

3.70%

Monthly

Japan

23:30

Job-To-Applicant Ratio (Feb)

Low

1.05

1.04

Monthly

Japan

23:50

Large Retailer’s Sales (Feb)

Medium

0.80%

0.10%

Monthly

Japan

23:50

Retail Trade (YoY) (Feb)

Medium

3.50%

4.40%

Monthly

China

–

Leading Index (Feb)

Medium

–

99.48

Monthly

00:05

GfK Consumer Confidence (Mar)

Medium

-6.00

-7.00

Monthly

01:30

Fed’s Evans to Speak in Hong Kong

Low

–

Germany

07:00

Import Price Index (YoY) (Feb)

Low

-2.40%

-2.30%

Monthly

France

07:45

Consumer Spending (MoM) (Feb)

Low

0.80%

-2.10%

Monthly

Switz-erland