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AUDUSD Fundamentals (based on dailyfx article)
Fundamental Forecast for Australian Dollar: NeutralThe Australian Dollar is set for a relatively flat finish after a turbulent week that yielded plenty of intraday volatility. An upside surprise to the Australian second quarter core CPI reading, and rise in headline inflation to the top of the RBA’s 2 to 3 percent target band, sent the currency soaring above the 94 US cent handle. Additional strength for the Aussie was found on the back of a bumper China PMI print, as well as an absence of ‘jawboning’ in a speech from RBA Governor Glenn Stevens. Ultimately, most of the gains proved short-lived, which may have reflected some hesitation from traders to push the currency into a region of noteworthy technical resistance.
Looking to the week ahead; Building Approvals and the Performance of Manufacturing Index figures represent the only medium-tier domestic economic data on the calendar. However, the leading indicators for the health of the local economy may do little to materially shift the rate outlook, meaning any reaction from the AUD may fail to find follow-through. Similarly, the Chinese manufacturing figures (also on tap) could generate another round of knee-jerk volatility on a surprise reading, yet likely hold do not hold the requisite power to leave a lasting impact on the currency.
Indeed, Stevens’ recent address reinforced the prospect of a ‘period of stability’ for the cash rate over the near-term. At this stage it appears unlikely the RBA will change its stance while it attempts to foster a rebalancing of the domestic economy.
Implied volatility remains near multi-year lows, suggesting traders continue to price in a relatively small probability of a major economic crisis occurring in the near-term. Traders are seemingly looking past the latest flare-up in geopolitical tensions and have returned to the hunt for yield.
The EUR/USD pair fell during the course of the week, clearing the 1.35 level. It now appears that the selling momentum is picking up, and heading down towards the 1.33 level. The 1.33 level as you can see is marked on the chart as support, and we feel that the buyers could step back into the marketplace at that area. Nonetheless, it does appear that in the meantime we are going to continue falling, and a break below the 1.33 level would be very bearish. Because of this, we don’t have any interest in buying.
The euro fell to eight month lows against the dollar on Friday as weaker than expected German economic data underlined concerns over the diverging monetary policy path between the European Central Bank and other central banks.
EUR/USD was down 0.25% to 1.3429 at the close, reaching the lowest level since November. For the week, the pair lost 0.74%.
The drop in the euro came after a report showed that Germany’s Ifo business climate index dropped to 108.0 in July, missing estimates for a reading of 109.4. It was the third consecutive monthly decline.
The data added concerns over the outlook for the euro zone’s largest economy. The euro has come under pressure since the ECB cut rates to record lows on June 5, in a bid to stave off the risk of deflation and shore up growth in the region.
Sentiment on the single currency was also hit by concerns that tougher sanctions on Russia would have a negative impact on the outlook for growth in the currency bloc, which has close trade ties with Moscow.
EUR/JPY was down 0.23% to 136.75 late Friday, not far from the five month lows of 136.35 reached in the previous session.
Elsewhere, the dollar was steady close to three week highs against the yen, with USD/JPY inching up 0.02% to 101.82 late Friday. Against the Swiss franc the dollar rose to five month highs, with USD/CHF up 0.24% to 0.9047.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.25% to 81.15 late Friday.
Elsewhere, the greenback rose to more than one month highs against the Canadian dollar on Friday, with USD/CAD advancing 0.64% to 1.0811. The commodity linked Australian and New Zealand dollars were also weaker, with AUD/USD down 0.24% to 0.9394 and NZD/USD down 0.22% to 0.8553.
The greenback was boosted by better than expected data on U.S. durable goods orders for June.
The Commerce Department reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%.
In the week ahead, investors will be focusing on Wednesday’s revised reading on U.S. second quarter growth, while Friday’s nonfarm payrolls report will also be in focus. Wednesday’s Fed statement will also be closely watched for any indications that the central bank is moving closer to raising rates.
Monday, July 28
- The U.S. is to release data on pending home sales.
Tuesday, July 29- Japan is to publish data on household spending and retail sales.
- The U.K. is to release data on net lending.
- Later Tuesday, the U.S. is to publish reports on house price inflation and consumer confidence.
Wednesday, July 30- New Zealand is to produce data on building consents.
- Japan is to publish a preliminary report on industrial production.
- In
the euro zone, Germany is to release preliminary data on consumer price
inflation, while Spain is to publish flash estimates on consumer
inflation and second quarter economic growth.
- Switzerland is to publish its KOF economic barometer.
- The
U.S. is to release the ADP report on private sector job creation, which
leads the government’s nonfarm payrolls report by two days. The U.S. is
also to publish revised data on second quarter growth.
- Canada is to release a report on raw material price inflation.
- Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement.
Thursday, July 31- Australia is to release data on building approvals and import prices.
- Japan is to release data on average cash earnings.
- The U.K. is to produce private sector data on house price inflation.
- The
euro zone is to release preliminary data on consumer inflation and
unemployment, while Germany is to publish data on retail sales and
unemployment.
- Canada is to publish its monthly report on gross domestic product.
- The
U.S. is to release the weekly report on initial jobless claims, as well
as data on manufacturing activity in the Chicago area.
Friday, August 1The Australian dollar declined against its U.S. counterpart on Friday, as stronger than expected data on U.S. durable goods orders underlined the view that the Federal Reserve will hike interest rates sooner than expected.
AUD/USD hit a daily low of 0.9393 on Friday, before subsequently consolidating at 0.9395 by close of trade, down 0.24% for the day but 0.03% higher for the week.
The pair is likely to find support at 0.9379, the low from July 23 and resistance at 0.9469, the high from July 24.
The Commerce Department said that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain.
Core durable goods orders, which are stripped of transportation items, grew 0.8% in June, beating expectations for a 0.6% gain.
The upbeat data came a day after the U.S. Department of Labor said that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to hit an eight-year low of 284,000.
Meanwhile, in Australia, official data released Wednesday showed that consumer price inflation rose 0.5% in the second quarter, after an increase of 0.6% in the three months to April. Analysts had expected CPI to rise 0.6% in the last quarter.
On a yearly basis, Australia CPI rose to 3.0% in the last quarter, from 2.9%, compared to expectations for an increase to 3.1%.
On Tuesday, Reserve Bank of Australia Governor Glenn Stevens said he is content with the current monetary policy setting and stands ready to do more if needed.
The Aussie had come under broad selling pressure earlier in the month, when Mr. Stevens warned investors that they were underestimating the risk of a significant fall in the currency.
Data from the Commodities Futures Trading Commission released Friday showed that speculators decreased their bullish bets on the Australian dollar in the week ending July 22.
Net longs totaled 38,793 contracts, down from net longs of 39,743 in the preceding week.
In the week ahead, investors will be focusing on Wednesday’s preliminary reading on U.S. second quarter growth, while Friday’s nonfarm payrolls report will also be in focus.
Wednesday’s Fed statement will also be closely watched for any indications that the central bank is moving closer to raising rates.
Monday, July 28
- The U.S. is to release data on pending home sales.
Tuesday, July 29- The U.S. is to publish reports on house price inflation and consumer confidence.
Wednesday, July 30- The U.S. is to release the ADP report on private sector
job creation, which leads the government’s nonfarm payrolls report by
two days. The U.S. is also to publish revised data on second quarter
growth.
- Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement.
Thursday, July 31- Australia is to release data on building approvals and import prices.
- The
U.S. is to release the weekly report on initial jobless claims, as well
as data on manufacturing activity in the Chicago area.
Friday, August 1The euro fell to eight month lows against the stronger dollar on Friday and was close to multi-month lows against the yen and the pound as concerns over the divergence in monetary policy between the European Central Bank and other central banks pressured the single currency lower.
EUR/USD was down 0.25% to 1.3429 at the close, reaching the lowest level since November. For the week, the pair lost 0.74%.
The pair is likely to find support at around 1.3400 and resistance at 1.3475.
The drop in the euro came after a report showed that Germany’s Ifo business climate index dropped to 108.0 in July, missing estimates for a reading of 109.4. It was the third consecutive monthly decline.
The data added concerns over the outlook for the euro zone’s largest economy. The euro has come under pressure since the ECB cut rates to record lows on June 5, in a bid to stave off the risk of deflation and shore up growth in the region.
Sentiment on the single currency was also hit by concerns that tougher sanctions on Russia would have a negative impact on the outlook for growth in the currency bloc, which has close trade ties with Moscow.
The greenback was boosted as better than expected data on durable goods orders for June added to signs that the U.S. economy is improving.
The Commerce Department reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%. Durable goods orders fell by 1.0% in May.
Demand for the dollar has been underpinned since Federal Reserve Chair Janet Yellen indicated earlier this month that U.S. interest rates could rise sooner if the recovery in the labor market continues.
Elsewhere Friday, EUR/JPY was down 0.23% to 136.75 late Friday, not far from the five month lows of 136.35 reached in the previous session.
EUR/GBP slid 0.18% to 0.7910, not far from Wednesday’s 22-month low of 0.7873.
In the week ahead investors will be focusing on U.S. data on second-quarter gross domestic product and an interest rate decision by the Federal Reserve on Wednesday, while Friday’s nonfarm payrolls report for July will also be closely watched.
The euro zone is to release preliminary data on consumer prices on Thursday.
Monday, July 28
- The U.S. is to release data on pending home sales.
Tuesday, July 29- The U.S. is to publish reports on house price inflation and consumer confidence.
Wednesday, July 30- In the euro zone, Germany is to release preliminary
data on consumer price inflation, while Spain is to publish flash
estimates on consumer inflation and second quarter economic growth.
- The
U.S. is to release the ADP report on private sector job creation, which
leads the government’s nonfarm payrolls report by two days. The U.S. is
also to publish revised data on second quarter growth.
- Later Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement.
Thursday, July 31- The euro zone is to release preliminary data on
consumer inflation and unemployment, while Germany is to publish data on
retail sales and unemployment.
- The U.S. is to release
the weekly report on initial jobless claims, as well as data on
manufacturing activity in the Chicago area.
Friday, August 1GBP/USD weekly outlook: July 28 - August 1
The pound edged down to one month lows against the broadly stronger dollar on Friday as upbeat U.S. data and heightened geopolitical tensions underpinned demand for the greenback.
GBP/USD edged down 0.06% to 1.6975 late Friday, the lowest since June 25. For the week, the pair lost 0.66%.
Cable is likely to find support at around the 1.6925 level and resistance at 1.7050.
In recent sessions, sterling has backed off the almost six-year highs of 1.7190 set on July 15 as expectations for a rate hike by the Bank of England before then end of the year waned.
The greenback was boosted as better than expected data on durable goods orders for June added to signs that the U.S. economy is improving.
The Commerce Department reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%. Durable goods orders fell by 1.0% in May.
Demand for the dollar has been underpinned since Federal Reserve Chair Janet Yellen indicated earlier this month that U.S. interest rates could rise sooner if the recovery in the labor market continues.
Investor demand for safe haven assets was also boosted by geopolitical concerns as tensions between the West and Russia remained high. The European Union imposed a fresh round of sanctions against Russia on Friday, in protest over Russia’s involvement in the crisis in east Ukraine.
Earlier Friday, official data confirmed that the U.K. economy grew 0.8% in the second quarter of 2014 and expanded by 3.1% on a year-over-year basis.
Elsewhere, sterling gained ground against the broadly weaker euro, with EUR/GBP sliding 0.18% to 0.7910, not far from Wednesday’s 22-month low of 0.7873.
The single currency weakened broadly on Friday as disappointing German economic data underlined concerns over the diverging monetary policy path between the European Central Bank and other central banks.
In the week ahead investors will be focusing on U.S. data on second-quarter gross domestic product and an interest rate decision by the Federal Reserve on Wednesday, while Friday’s nonfarm payrolls report for July will also be closely watched.
The U.K. is to release data on manufacturing sector activity on Friday.
Monday, July 28
Tuesday, July 29
Wednesday, July 30
Thursday, July 31
Friday, August 1
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mazennafee, 2014.07.28 14:00
United Kingdom - Ireland
National Grid issued an interim management statement for the April 1 - July 27 period: "Our businesses have continued to build on the performance improvements of 2013/14 and, as a result, have started the year well. (...) we are maintaining our outlook for 2014/15, reflecting the expected delivery of another year of solid operating and financial performance and asset growth, consistent with sustaining our long term dividend policy."
Aberdeen Asset Management posted an interim management statement: "The major element of the acquisition of Scottish Widows Investment Partnership ('SWIP') was completed on 31 March 2014, followed by the purchase of the SWIP infrastructure business which was completed on 1 May 2014. The process of integrating the SWIP business into the Aberdeen Group is proceeding in accordance with our expectations, both on timing and in delivering cost synergies, (...) AuM (Assets under management) at 30 June 2014 totalled £322.5B, a 0.6% decrease on 31 March 2014."
Reckitt Benckiser posted 1H results: "Total HY net revenue (ex RBP) was £4,323M, a LFL (like-for-like) increase of +4% (+4% total at constant rates, ex RBP). (...) Operating profit as reported was £1,059M, +16% versus HY 2013 (+30% constant), reflecting the reduction of exceptional pre-tax charges from £249M at HY 2013 to £22M at HY 2014. (...) Net income as reported was £812M, an increase of 23% versus HY 2013 (+38% constant). (...) Diluted EPS of 111.1p was +23% higher on a reported basis; on an adjusted basis, diluted EPS declined by -4% to 113.4p. (...) The Board of Directors declares an interim dividend of 60.0p (2013: 60.0p)."
Hiscox Ltd reported 1H pre-tax profit down 31.0% YoY to £125M, saying: "Gross written premiums reduced to £978.9M (2013: £1,017.9M). (...) The Group was impacted by foreign exchange losses of £16.4M (2013: gains of £34.9M). The net combined ratio was 82.0% (2013: 74.7%). (...) declared an interim dividend for 2014 of 7.5p per share (2013: 7.0p) an increase of 7.1%."Premier Oil said Richard Rose, currently an executive at Ophir Energy, will join the Co as finance director.
Debenhams announced the appointment of Matt Smith, currently CFO of Mothercare Plc, as CFO.
Ryanair reported that 1Q net income surged to E197M from E78M in the previous year on sales of E1.5B, up 11% YoY. The Co has raised its FY (to March 2015) net income guidance to E620M-650M from E580M-620M previously.
Auto & Parts health care and media shares fell most in London on Friday.
Automobiles & Parts: GKN (-1.99% to 344.2p) reached a new 3-month relative low against the FTSE 100.
Banks: Royal Bank Of Scotland Group (+10.77% to 364.2p) reached a new 3-month relative high against the FTSE 100.
Basic Resources: Anglo American (+3.44% to 1639.5p) closed at a 3-month relative high against the FTSE 100.
Food & Beverage: Diageo (-1.48% to 1797.5p) reached a new 3-month relative low against the FTSE 100.
Health Care: Glaxosmithkline (-3.16% to 1423p) closed at a 3-month relative low against the FTSE 100.
Industrial Goods & Services: Wolseley (-1.35% to 3146p), Royal Mail (-1.52% to 441.1p), Rexam (-2.01% to 513p), Electrocomponents (-2.65% to 234.8p) and Spectris (-7.68% to 1934p) closed at a 3-month relative low against the FTSE 100.
Media: United Business Media (-1.01% to 634p) closed at a 3-month relative low against the FTSE 100.
Oil & Gas: Amec (-1.37% to 1154p) reached a new 3-month relative low against the FTSE 100.
Personal & Household Goods: Burberry Group (-1.59% to 1420p) reached a new 3-month relative low against the FTSE 100.
Retail: Sports Direct International (-1.21% to 694p), Kingfisher (-1.26% to 304.6p), Booker Group (-1.34% to 125.2p) and Tesco (-1.62% to 270.35p) reached a new 3-month relative low against the FTSE 100.
Technology: Sage Group (-1.07% to 370p) reached a new 3-month relative low against the FTSE 100.
Travel & Leisure: TUI Travel (-0.92% to 365.2p) closed at a 3-month relative low against the FTSE 100.
Utilities: SSE (-1.01% to 1465p) closed at a 3-month relative low against the FTSE 100.
Stock/Benchmark ratio(s) 50D MA cross over: Carillion Plc (+7.18% to 362.8p), Pearson (+2.82% to 1132p), Royal Bank Of Scotland Group (+10.77% to 364.2p), William Hill (+1.03% to 342.5p)
Stock/Benchmark ratio(s) 50D MA cross under: Ashmore Group (-1.1% to 360p), BSkyB (-5.46% to 874.5p), BTG Plc (-2.57% to 606p), Catlin Group (-2.06% to 524p), DCC (-1.86% to 3479p), Marks & Spencer (-1.55% to 438.8p), Reckitt Benckiser (-1.27% to 5070p).Stock(s) 50D MA cross over: Carillion Plc (+7.18% to 362.8p), Royal Bank Of Scotland Group (+10.77% to 364.2p), Vodafone (+2.12% to 202.05p), William Hill (+1.03% to 342.5p)
Stock(s) 50D MA cross under: Admiral Group (-1.73% to 1481p), Ashmore Group (-1.1% to 360p), BSkyB (-5.46% to 874.5p), BT Group (-1.26% to 383p), BTG Plc (-2.57% to 606p), Catlin Group (-2.06% to 524p), DCC (-1.86% to 3479p), Marks & Spencer (-1.55% to 438.8p), Persimmon (-1.99% to 1280p), Reckitt Benckiser (-1.27% to 5070p), Rightmove (-1.27% to 2170p).
Latest broker recommendations
Royal Bank of Scotland was upgraded to "neutral" from "sell" at UBS and to "neutral" from "underweight" at JPMorgan.
Anglo American was downgraded to "neutral" from "buy" at UBS.Glaxosmithkline was downgraded to "neutral" from "buy" at BofA-ML.
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mazennafee, 2014.07.28 14:24
Germany / Austria
Volkswagen's unit Audi has proactively lowered spare-part prices in China, reported Reuters citing an emailed statement. Last Friday, the Co (-1.83% to E180) closed at a 3-month relative low against the Dax.
Merck KGaA will launch the sale of non-prescription drugs in China with an aim to double revenues in the region to E1B by 2018, reported German weekly Wirtschaftswoche citing the Co's CEO.
Wincor Nixdorf reported that 9-month net income amounted to E61M, flat compared to the prior-year-period, and EBITA were also stable at E92M on net sales of E1.8B, down 2.1% YoY. The Co pointed out: "Business in the industrialized markets of Europe is progressing at a subdued rate. There is still no prospect of a sustained improvement in the investment climate for retail banks and retailers in this region, (...) The Co now expects (FY2013/14) net sales to reach a level comparable to that recorded in the previous year instead of rising by the 4% it had originally projected. The forecast for operating profit, by contrast, remains unchanged, with EBITA expected to increase by 17% to E155M."
GEA Group posted 2Q net income up 7.2% YoY to E81M (EPS up to E0.42 from E0.39) and EBITDA up 8.1% to E123M on revenue of E1.1B, up 5.0% (+8.0% organic growth). 1H net income grew 10.1% to E128M and EBITDA were up 11.5% to E206M. The Co confirmed its 2014 business outlook.
Fuchs Petrolub Morphosys: 2Q results expected.
Immofinanz AG: FY results expected.
Chemicals: BASF (-2.4% to E80.37) closed at a 3-month relative low against the Dax.Industrial Goods & Services: Deutsche Post (-2.15% to E24.84) closed at a 3-month relative low against the Dax.
Travel & Leisure: TUI (-1.92% to E10.74) reached a new 3-month relative low against the Dax.
DE - Stock/Benchmark ratio(s) 50D MA cross over: MTU Aero Engines (+1.12% to E66)Stock/Benchmark ratio(s) 50D MA cross under: Continental (-2.6% to E165.15).
DE - Stock(s) 50D MA cross over: Sky Deutschland (+1.35% to E6.75)
Stock(s) 50D MA cross under: Deutsche Euroshop (-1.74% to E36.17), Evonik Industries (-1.01% to E28.54), Henkel (-2.6% to E83.56), Infineon Technologies (-3.53% to E8.91), Linde (-1.13% to E152.85).
France
The jobless total in mainland France rose 0.3% MoM (+4.0% YoY) to 3,398,300 in June, according to the government.
Danone is negotiating the sale of its medical nutrition unit to US group Hospira and the deal could be priced up to $5B, reported the FT citing sources familiar with the matter.
Club Mediterranee's board recommended shareholders support a E790M takeover offer made by Italian financier and majority shareholder Andrea Bonomi.
Christian Dior FY (to June 30) recurring operating profit was down 1% YoY to E6.0B on revenue of E31.0B, up 3% (+7% organic growth).Naturex reported 1H revenue down 4.5% YoY (-1.8% at constant exchange rates) to E158M.
Societe Generale, Arkema, Axa, Teleperformance CGG, ArcelorMittal: 1H results expected.
Automobiles & Parts: Michelin (-2.88% to E82.54) reached a new 3-month relative low against the Cac 40.
Basic Resources: Imerys (-2.99% to E57.49) reached a new 3-month relative low against the Cac 40.
Media: Publicis (-1.32% to E57.55) closed at a 3-month relative low against the Cac 40.
Oil & Gas: Technip (-2.75% to E69.05) closed at a 3-month relative low against the Cac 40.
Personal & Household Goods: Christian Dior (-6.31% to E136.65) and LVMH (-6.8% to E131.65) closed at a 3-month relative low against the Cac 40.
Retail: Carrefour (-2.15% to E27.03) reached a new 3-month relative low against the Cac 40.
Stock/Benchmark ratio(s) 50D MA cross under: Christian Dior (-6.31% to E136.65), ICADE (-2.61% to E72.64), Kering (-4.93% to E151.5), LVMH (-6.8% to E131.65).
Stock(s) 50D MA cross under: Air Liquide (-1.79% to E97.62), Bolloré (-1.58% to E464.05), Axa (-1.31% to E17.67), Foncière Des Régions (-1.76% to E76.04), GDF Suez (-2.94% to E19.8), L'Oréal (-1.7% to E126.9), Hermes (-2.28% to E258.95), Schneider Electric (-2.02% to E67.54).
Benelux
Reed Elsevier said it has bought back 74K shares at E17.2158 per share last Friday July 25.
TNT Express 2Q results expected
Belgacom Cofinimmo: 1H results expected.
Chemicals: Solvay (-1.37% to E126.15) reached a new 3-month relative low against the BEL 20.
Industrial Goods & Services: Randstad (-1.85% to E36.28) and Gemalto (-2.81% to E72.65) reached a new 3-month relative low against the AEX.
NL - Stock/Benchmark ratio(s) 50D MA cross under: Nutreco (-2.97% to E31.7).
BE - Stock(s) 50D MA cross under: AB InBev (-1.36% to E82.53)
NL - Stock(s) 50D MA cross under: Nutreco (-2.97% to E31.7).
Spain - Portugal - Greece
Ferrovial may make an offer of A$1.5B for Australia's John Holland, a contracting and services unit of Leighton Holdings, reported Spanish daily newspaper Expansion. The Co is expected to release 1H results.
DIA reported that 1H net income surged to E211M from E49M in the previous year on sales of E3.8B, down 2.6%.
Jazztel, Bankia, Bolsas Y Mercados Espanoles, Amadeus IT: 1H results expected.
Banco Comercial Portugues, Galp Energia: 1H results expected
Industrial Goods & Services: Zardoya Otis (-1.26% to E11.77) closed at a 3-month relative low against the Ibex.
S - Stock/Benchmark ratio(s) 50D MA cross over: CaixaBank (+3.23% to E4.54), Corporacion Mapfre (+2.7% to E2.97)
Stock/Benchmark ratio(s) 50D MA cross under: Ferrovial (-1.05% to E15.96).
ES - Stock(s) 50D MA cross over: CaixaBank (+3.23% to E4.54), Corporacion Mapfre (+2.7% to E2.97)
GR - Stock(s) 50D MA cross over: OPAP (+4.42% to E12.53).
Italy
UniCredit is concluding a deal to further sell part of its remaining E1.5B private equity investment portfolio to SwanCap Partners, according to the daily newspaper Il Sole 24 Ore.Intesa Sanpaolo Atlantia: 1H results expected.
Industrial Goods & Services: Atlantia (-2.73% to E19.99) reached a new 3-month relative low against the FTSE MIB.
Personal & Household Goods: Tod's (-1.1% to E85.8) reached a new 3-month relative low against the FTSE MIB.
Technology: STMicroelectronics (-1.69% to E6.41) reached a new 3-month relative low against the FTSE MIB.
Stock/Benchmark ratio(s) 50D MA cross over: Telecom Italia (+1.13% to E0.9).
Stock(s) 50D MA cross over: Luxottica Group (+1.59% to E42.21)
Stock(s) 50D MA cross under: Atlantia (-2.73% to E19.99), Banca Popolare Di Milano (-0.84% to E0.65), Tenaris (-1.24% to E16.66).
Switzerland
Novartis' eye-care unit Alcon announced that its Simbrinza eye drops suspension (brinzolamide 10mg/mL and brimonidine tartrate 2mg/mL) has been approved by the European Commission to decrease elevated intraocular pressure (IOP) in adult patients with open-angle glaucoma or ocular hypertension.
Chemicals: Syngenta (-1.95% to SF322.1) reached a new 3-month relative low against the SMI.
Construction & Materials: Sika (+0.8% to SF3767) reached a new 3-month relative high against the SMI.
Personal & Household Goods: Swatch Group (-2% to SF493.9) closed at a 3-month relative low against the SMI.
Scandinavia
Automobiles & Parts: Nokian Renkaat (-1.49% to E27.09) closed at a 3-month relative low against the OMXH.
Construction & Materials: NCC AB (-1.05% to SEK227.1) reached a new 3-month relative low against the OMX Stockholm 30.
Health Care: Elekta Instrument (-1.18% to SEK83.55) closed at a 3-month relative low against the OMX Stockholm 30.
Industrial Goods & Services: Alfa Laval (-1.1% to SEK161.9) closed at a 3-month relative low against the OMX Stockholm 30.
Real Estate: JM AB (-1.9% to SEK222.4) reached a new 3-month relative low against the OMX Stockholm 30.
NO - Stock(s) 50D MA cross under: Statoil (-2.49% to NOK184).
Visa (V -3.58% to $214.77) released 3Q EPS of $2.17 vs $2.10 estimated ($1.88 prior year) on revenues of $3.16B ($3B a year ago). The Co expects constant revenue growth of 9-10% in FY14, with client incentives around 17% of gross revenue.
Baidu (BIDU +10.88% to $226.5) posted 2Q adjusted profit per ADS of $1.73 vs expectations of $1.40. Total revenues were $1.93B, up 58.5% YoY. The Co expects 3Q sales of $2.16-2.22B.
Starbucks (SBUX -2.13% to $78.74) announced 3Q EPS of $0.67 vs estimates of $0.66 ($0.55 a year ago) on sales of $4.15B ($3.74B last year). The Co increased its FY14 EPS guidance to $2.70-2.72 from $2.65-2.67. The firm also projected revenue growth of 10% or more and an additional 1,600 new stores opening globally in FY15.
Covidien (COV -1.47% to $87.79) announced 3Q adjusted EPS of $1.04, up 14% YoY ($1.01 expected) on net sales up 4% to $2.7B.
Tyco International (TYC +0.89% to $45.21) reported 2Q adjusted EPS of $0.54 vs $0.46 last year on revenue of $2.66B, up 5% YoY.
Chubb Corp (CB -3.39% to $89.62) reported 2Q EPS of $2.03, down 8% YoY on revenues of $418M ($463M last year). The combined ratio was 90% including a Catastrophe Impact of 4.8 points.
KLA-Tencor (KLAC -1.94% to $71.6) posted 4Q EPS of $0.80 vs expectations of $0.85 ($0.82 a year ago) on revenues of $734M ($720M prior year).
Altera (ALTR -1.65% to $33.48) released 2Q EPS of $0.41 vs estimates of $0.37 ($0.31 last year) on sales of $491.5M ($421.7M a year ago). The Co announced an increase in their quarterly dividend to $0.18 from $0.15 per share.
Cerner (CERN +2.17% to $56.85) unveiled 2Q adjusted EPS of $0.4 vs $0.34 in the previous year on revenue of $851.8M, up 20% YoY. Looking forward, the Co expects 3Q revenue between $840M and $870M and FY14 revenue between $3.3B and $3.4B, which is up from a prior range of $3.25B to $3.4B. Besides, 3Q adjusted EPS is expected to be between $0.41 and $0.42 and adjusted EPS between $1.64 and $1.67, which is up from a prior range of $1.63 to $1.67.
Principal Financial Group (PFG +0.02% to $51.79) delivered 2Q EPS of $1.03 vs $0.75 last year on operating revenues of $2.5B, up 10% YoY.
SBA Communications (SBAC -0.25% to $103.22) said 2Q LPS widened to $0.07 from $0.28 a year earlier on total revenues of $383.4M vs $324.3M. Looking ahead for 3Q, the Co expects 3Q total revenue to be $380.5M to $390.5M and FY14 total revenue to be $1.5B to $1.52B.
Republic Services (RSG +0.86% to $37.37) generated 2Q adjusted EPS of $0.51 vs $0.43 in the previous year on revenue of $2.22B vs $2.11B. The Co reaffirmed its FY adjusted EPS guidance of $1.93 to $1.98.
CR Bard (BCR +1.29% to $148.85) posted 2Q adjusted EPS of $2.06, up 30% YoY on net sales of $827.1M, up 9%.
Stericycle (SRCL +0.41% to $118.25) delivered 2Q adjusted EPS up 10.9% YoY to $1.03 on revenue of $640.8M, up 21.7%.
Maxim Integrated Products (MXIM -10.81% to $29.38) announced 4Q EPS of $0.29 vs $0.4 in previous year on net revenue of $642M, up 6% YoY.
Verisign (VRSN +11.56% to $55.59) reported 2Q EPS of $0.71 vs $0.55 in the same quarter in 2013 on revenue of $250M, up 4.6% YoY. Adjusted EPS was $0.68 vs $0.5 a year ago. The Co announced that it will boost its share buyback program to $1B.
Leggett & Platt (LEG +2.19% to $33.59) posted 2Q adjusted EPS from continuing operations of $0.48, up 9% YoY on sales up 4% to $1B. The Co said "2014 sales are forecast to be $3.88-3.98 billion."
Align Technology (ALGN +5.88% to $56.36) unveiled 2Q EPS of $0.43 vs $0.36 a year ago on revenues of $192.5M, up 17.5% YoY. Looking forward to 3Q, the Co said "net revenues in a range of $186.3M to $190.2M, which reflects a year-over-year increase of 13.2% to 15.6%. EPS in a range of $0.41 to $0.44."
Chicago Bridge & Iron (CBI -9.23% to $63.07) recorded 2Q adjusted EPS of $1.36 vs $1.04 on revenue of $3.3B, vs $2.9B.
Flextronics Intl (FLEX -3.56% to $10.84) announced 2Q adjusted EPS of $0.25, up 39% YoY on net sales up 15% to $6.7B. For 2Q, the Co said "revenue is expected to be in the range of $6.2B to $6.6B and adjusted EPS is expected to be in the range of $0.22 to $0.26 per diluted share."
Pandora Media (P -10.34% to $25.75) reported 2Q LPS of $0.06 vs LPS of $0.04 last year on total revenue of $219M vs $153M. Adjusted EPS were unchanged at $0.04.
Ingram Micro (IM -1.32% to $29.89) posted 2Q EPS of $0.32 vs $0.45 in the prior year on net sale of $10.9B vs $10.3B. Looking forward, the Co said "The company currently expects 2014 third quarter worldwide revenue to increase year-over-year in the high single digits."
Universal Health (UHS +6.86% to $104.23) unveiled 2Q EPS of $1.51 vs $1.53 in the previous year on net revenue up 10% YoY to $2B. The Co anticipates FY14 adjusted EPS to be $5.55 to $5.85.
21st Century Fox (FOXA -0.33% to $32.81): BSkyB announced that it has agreed with the Co to acquire 21st Century Fox's 100% stake in Sky Italia and its 57.4% interest in Sky Deutschland, adding: "The total consideration for the acquisition of Sky Italia is £2.45B with appx. £2.07B to be paid in cash and the balance to be satisfied through the transfer of BSkyB's 21% stake in National Geographic Channel International to 21st Century Fox at a value of £382M. The acquisition of 21st Century Fox's shareholding in Sky Deutschland is for a consideration of £2.9B in cash, valuing Sky Deutschland at E6.75 per share."
Exxon Mobil (XOM -1.05% to $103.18) was downgraded to "underweight" from "equalweight" at Barclays.
HerbaLife (HLF +0.32% to $66.06) appointed Alan Hoffman as the Executive VP of Global Corporate Affairs to help fight claims made by Pershing Square's Bill Ackman.
Google (GOOGL -0.82% to $598.08) is set to acquire Twitch, a livestreaming game company, for around $1B.
Stanley Black & Decker (SWK +6.76% to $90.77) announced 2Q EPS of $1.43 vs estimates of $1.36 ($1.21 last year) on revenues of $2.89B ($2.87B prior year). The Co raised their FY14 EPS forecast to $5.50-5.60 from $5.35-5.50.
LyondellBasell Industries (LYB +4.95% to $107.49) reported 2Q EPS of $2.22 vs $1.92 expected ($1.60 a year ago) on sales of$12.12B ($11.1B last year). The firm raised its quarterly dividend by 17% to $0.70 per share. Shareholders also approved a buyback of as much as 10% of the company's shares in the next 18 months.
AON Corp (AON -5.11% to $86.32) released 2Q EPS of $1.25 vs $1.2 estimated ($1.11 a year ago) on revenues of $2.92B ($2.9B prior year). Reinsurance commissions and fees fell by 4.3% YoY to $360M.
Moody's (MCO -0.93% to $91.62) posted 2Q EPS of $1.12 vs expectations of $1.02 ($1 a year ago) on sales of $873.5M ($756M last year). The Co sees FY14 EPS of $3.90-4.00.
AbbVie (ABBV -1.66% to $53.18) announced 2Q EPS of $0.82 vs estimates of $0.76 ($0.82 a year ago) on revenues of $4.93B ($4.69B prior year). The Co reaffirmed their FY14 EPS frecast of $3.06-3.16.
DTE Energy (DTE -1.58% to $76.04) reported 2Q EPS of $0.73 vs $0.75 expected ($0.62 a year ago). The firm reitterated their FY14 EPS forecast of $4.20-$4.40.
American Electric Power (AEP -1.46% to $53.22) posted 2Q EPS of $0.80 vs $0.75 estimated ($0.73 last year). The Co boosted capital investment in their transmission business by $100M.
Technology: Hewlett Packard (HPQ +1.11% to $35.43) and Xerox (XRX +2.41% to $13.15) reached a new 52w high.
Xerox (XRX +2.41% to $13.15) released 2Q EPS of $0.27 vs expectations of $0.26 ($0.27 a year ago) on sales of $5.29B ($5.4B prior year). The firm boosted the low end of its FY14 EPS forecast to $1.09 from $1.07.
Industrial Goods & Services: Chipotle Mexican Grill (CMG +2.03% to $673.58) and Cameron Int (CAM +2.36% to $74.15) reached a new 52w high.
Stocks 50D MA cross over: Emerson Electric (EMR +0.57% to $67.43), Phillips 66 (PSX +0.67% to $82.65), Salesforce.com (CRM +1.54% to $54.89), Stanley Black & Decker (SWK +6.76% to $90.77), Verisign (VRSN +11.56% to $55.59), Viacom (VIAB +0.61% to $86.14).
Stocks 50D MA cross under: Ace Ltd (ACE -1.24% to $103.49), ADT Corp (ADT -0.93% to $33.17), AGL Resources (GAS -1.05% to $53.54), AIG (AIG -1.83% to $54.16), Altria (MO -0.71% to $41.74), Amazon.com (AMZN -9.65% to $324.01), American Electric Power (AEP -1.46% to $53.22), American Express (AXP -1.31% to $91.93), AON Corp (AON -5.11% to $86.32), Avago Technologies (AVGO -3.57% to $69.92), Avery Dennison (AVY -3.26% to $49.24), Berkshire Hathaway (BRK/B -0.62% to $127.55), Denbury Resources (DNR -2.24% to $17.49), DTE Energy (DTE -1.63% to $76), Fluor Corp (FLR -1.82% to $76.02), Jacobs Engineering (JEC -1.57% to $53.99), L Brands (LB -0.82% to $57.75), L-3 Communications (LLL -0.93% to $120.85), Loews Corp (L -0.52% to $43.62), Mastercard (MA -2.35% to $75.75), Nordstrom (JWN -0.99% to $68.08), Occidental Petroleum (OXY -0.78% to $100.09), Patterson Cos (PDCO -1.6% to $39.41), Procter & Gamble (PG -0.87% to $79.56), Texas Instruments (TXN -2.17% to $46.82), The Hartford (HIG -1.73% to $35.25), TripAdvisor (TRIP -1.88% to $99.88), Varian Medical Systems (VAR -0.74% to $82.74), Wal-Mart (WMT -0.5% to $75.97), Wisconsin Energy (WEC -0.97% to $45.15).
Stock/S&P500 ratios 50D MA cross over: Comerica (CMA +0.72% to $50.4), CR Bard (BCR +1.29% to $148.85), Flowserve Corp (FLS +1.9% to $77.88), Republic Services (RSG +0.86% to $37.37), Stanley Black & Decker (SWK +6.76% to $90.77), Verisign (VRSN +11.56% to $55.59), Zions Bancorporation (ZION +1.93% to $30.06).
Stock/S&P500 ratios 50D MA cross under: Amazon.com (AMZN -9.65% to $324.01), Centerpoint Energy (CNP -1.15% to $24.87), Electronic Arts (EA -2.17% to $36.04), Humana (HUM -3.27% to $128.55), Legg Mason (LM -0.59% to $50.95), Lowe's (LOW -0.62% to $47.7), Marsh & McLennan (MMC -2.45% to $51.43), Mastercard (MA -2.35% to $75.75), ONEOK (OKE -1.39% to $66.83), Paccar (PCAR -0.78% to $65.04), Prudential Financial (PRU -1% to $88.92), Simon Property (SPG -1.37% to $168.97), Teradata (TDC -1.73% to $42.63), Tractor Supply (TSCO -2.52% to $63.47), Visa (V -3.58% to $214.77).
Tyson Foods (TSN) announced plans to shut 3 prepared foods plants, including those in Cherokee of Iowa, Buffalo of New York, and Santa Teresa of New Mexico, adding that appx. 950 people will be affected.
Hospira (HSP) is negotiating the purchase of the medical nutrition unit of French dairy group Danone and the deal could be priced up to $5B, reported the FT citing sources familiar with the matter.
Tyson Foods (TSN): 3Q EPS seen at $0.78 ($0.69 a year ago), before mkt.
General Growth Properties (GGP): 2Q EPS seen at $0.1 ($0.24 a year ago), after mkt.
Roper Industries (ROP): 2Q EPS seen at $1.5 ($1.18 a year ago) on sales of appx. $870M ($784M), before mkt.
Range Resources (RRC): 2Q EPS seen at $0.4 ($0.24 a year ago), after mkt.
Plum Creek Timber (PCL): 2Q EPS seen at $0.3 ($0.28 a year ago), after mkt.
Other Cos expected to report their results: Southwestern Energy (SWN), Clorox Company (CLX), Catamaran (CTRX), Vulcan Materials (VMC), Quanta Services (PWR), Pinnacle West Capital (PNW), Legg Mason (LM), Avon Products (AVP), Perkinelmer (PKI), Hudson City Bancorp (HCBK), Aimco (AIV), TECO Energy (TE)
Gold was up $14.1 to $1307.9. The precious metal was below its 20D MA (@ $1315) and above its 50D MA (@ $1294).
Copper Future (SEP 14) on Comex was down 2.2c to 324.45c/lb. The contract was above its 20D MA (@ 307.41c) and above its 50D MA (@ 303.17c). In Europe, the London Metal Exchange reported its copper inventories decreased 1750 tons to 152600 tons.