Broadgate: Market News 6/11
6 November 2012
U.S. stock index futures pointed to a higher open on Wall Street on Tuesday, with the S&P 500 , Dow Jones and Nasdaq 100 indicated up 0.2 percent at 0930 GMT.
European shares and the dollar steadied as investors awaited news on the U.S. election, while uncertainty over Greece’s next aid payment kept the euro at a two-month low.
Polls showed President Barack Obama and Republican challenger Mitt Romney deadlocked in a race that will be decided in a handful of states.
The balance of power in the U.S. Congress will also be at stake in Senate and House of Representatives races that will impact the outcome of “fiscal cliff” talks on $600 billion in spending cuts and tax increases.
They are set to be automatically triggered at the end of the year unless a deal is reached.
NYSE Euronext will be in the spotlight after the world’s largest stock exchange operator reported net revenue down 21 percent to $559 million for the third quarter, citing weaker trading.
Carmakers will be in focus after Nissan Motor Co cut its full-year net profit forecast by 20 percent.
Qatar and the United Arab Emirates have requested the sale of up to $7.6 billion in Lockheed Martin Corp missile-defense systems to counter perceived threats and lower their dependence on U.S forces, the Pentagon announced on Monday.
The U.S. Federal Reserve’s unconventional monetary policies have lowered borrowing costs and boosted growth without creating unwanted inflation, a top Fed official said on Monday, predicting the Fed’s latest round of asset-buying will exceed $600 billion.
Children’s toymaker LeapFrog Enterprises Inc raised its full-year forecast and said it will increase its advertising spending to attract more shoppers during the holiday season.
U.S. pharmacy benefits manager Express Scripts Holding Co said analyst forecasts for its 2013 results were too aggressive, casting doubt on how well it is integrating its $29 billion purchase of Medco Health Solutions Inc and sending its shares down 14 percent.
Real estate website Zillow Inc forecast fourth-quarter revenue below analysts’ estimates after it lost one of its larger advertisers, Foreclosure.com, sending the company’s shares down 25 percent in after-market trading.
On the earnings front, investors awaited results from a number of companies including Cablevision, CVS Caremark Corp and News Corp.
U.S. stocks advanced modestly on Monday in light trading in one of the year’s quietest sessions on the day before the U.S. presidential election.
The Dow Jones industrial average advanced 19.28 points, or 0.15 percent, to end at 13,112.44. The Standard & Poor’s 500 Index rose 3.06 points, or 0.22 percent, to 1,417.26. The Nasdaq Composite Index gained 17.53 points, or 0.59 percent, to close at 2,999.66.
Brent oil traded in a tight range below $108 per barrel on Tuesday, hurt by uncertainty ahead of the U.S. elections and renewed worries about Greeceand the euro zone crisis, which could delay a global economic recovery and dampen oil demand.
Front month Brent futures were trading 5 cents higher at $107.78 per barrel by 2.22 a.m.EDT, trading in a tight 44-cent range so far in the session. Brent rallied nearly 2 percent on Monday, driven higher by rising tensions in the Middle East.
U.S. crude slipped 1 cents to $85.55 per barrel.
Gold traded little changed on Tuesday as investors awaited potential policy spinoffs from the U.S. presidential election, while China’s upcoming leadership transition and Greece’s strike over a new austerity package also kept sentiment cautious.
Spot gold was trading nearly flat at $1,684.46 an ounce by 3.23 a.m. EDT, rebounding from a two-month low of $1,672.24 in the previous session.
U.S. gold barely moved at $1,684.40.
The euro fell to a two-month low against the dollar on Tuesday, with the outlook for the single currency clouded by uncertainty over a parliamentary vote in Greece on budget and labor reforms.
The euro shed 0.2 percent to trade at $1.27635 on trading platform EBS, its lowest level in two months. That was well below its September 17 high of $1.31729 struck after the European Central Bank pledged to buy government bonds of struggling euro zone countries.
The dollar underperformed the yen, however, falling 0.2 percent to 80.13 yen, and well below a six-month high of 80.68 yen hit on Friday. Traders said investors cut long dollar positions built up earlier.
The Australian dollar climbed after Australia’s central bank kept interest rates unchanged at 3.25 percent, citing higher domestic inflation and an improved global background, although it still left the door open to more stimulus if needed.
The decision came as a surprise to some market players. The Australian dollar rose 0.5 percent to $1.0420.
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