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US market retreats ahead of key central bank meetings Inbox | | | | From: NetResearch Asia [mailto:postman@netresearch-asia.com] Sent: Tuesday, July 30, 2013 9:55 AM To: NetResearch Asia 30 Jul 2013 Subject: US market retreats ahead of key central bank meetings Pre-Market Open Commentary for 30 July 2013 ( CO. REG. NO. 199904258C ) DJIA: 15521.97 -36.86 Nasdaq Composite: 3599.14 -14.03 Good morning, fellow investors US stock market started the trading week on a weak note as investors reduced exposure to equities ahead of policy meetings of the US Federal Reserve, the European Central Bank and Bank of England. In particular, market will look to the Fed for clues on the timing of tapering of its U$85 bil monthly bond-purchase program. Pending home sales pulled back from a six-year high, as the pending home sales index dipped 0.4% in June, a sign that rising mortgage rates were starting to dampen home sales. However, the fall in sales was still less severe than expectations of a fall of 1.0%. Corporate merger news failed to lift sentiment in the broader market. Saks surged 4.2% after Hudson’s Bay, parent company of rival luxury retailer Lord & Taylor, announced it would acquire the department store chain for US $2.4 bil. Omnicom and France's Publicis agreed to a merger to create the world's largest advertising holding company, with a combined market value of US$35.1 bil. US over-the-counter drugmaker Perrigo announced an US$8.6 bil deal comprising cash and stock that pays about a 26% premium for Elan shareholders, to acquire Irish drugmaker Elan Corporation. Shares of Elan rose 3.6%. The three major US indices pulled back with the Dow Jones Industrial Average losing 0.24% while the S&P 500 fell 0.37% to close at 1685.33. The Nasdaq retreated 0.39%. On Tuesday, market will take leads from S&P Case-Shiller home price index, consumer confidence as well as earnings of major corporate including from BP, Merck and Chrysler. The Federal Reserve is also scheduled to begin its two-day policy meeting on the same day. Crude oil for September delivery pulled back US$0.15 a barrel, or 0.14%, to settle at US$104.55 a barrel. In Singapore today: Singapore stock market traded mostly in the red on Monday as traders turned cautious ahead of central bank policy meetings in the US, Europe and the UK this week. Reports of weak profits from Chinese industrial firms renewed fears of slowing Chinese economic growth and further weighed on sentiment. The STI index pulled back as much as 17.6 point to 3218.5 during the session but reversed losses to close 0.87 points, or 0.03% higher at 3236.97. For every stock that rose, 1.9 fell. Turnover was 1.8 bil shares with a value of $911.4 mil traded, as penny caps dominated trading. Swiber Holdings, an offshore oil and gas construction and services provider clinched two contracts comprising one valued at US$330 mil under the firm and another valued at US$105 mil under a Swiber Group joint venture company, taking the total value of its project wins in 2013 to cross the US $500mil-dollar mark. These projects are expected to complete by 2015. In February 2013, Swiber clinched a US$153 mil project. With the prospects of the offshore oil and gas industry looking bright and Swiber’s competitive edge, Swiber’s CEO is upbeat that the group will continue to attract high-value work from international oil and gas majors in the Asia Pacific, Latin America and Middle Eastern regions. In the absence of fresh compelling leads, expect another day of range-bound trading on the local bourse on cautious trading ahead of key central bank meetings in the US and Europe. 1. Chartzones – 30 July 2013 (premium) Media, China Stocks and Technology Stocks [read the report] 2. TEE International Ltd - 4Q13 results update (free) Infrastructure services on the move [read the report] | |
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