< Back to News

Market News


European Markets

Opening calls are indicating a lower open this morning.

 

Asian Markets

Indices in Asia are trading lower.

US Markets

U.S. stocks closed lower Wednesday, after the Federal Reserve released a pessimistic report on regional economic activity.

The Dow Jones industrial average closed down 72 points, or 0.6%. The S&P 500 shed 15 points, or 1.3%. The Nasdaq composite lost 53 points, or 2%.

Events Today

The German government will present its economic forecast on Thursday, with Reuters reporting that coalition sources expect Economy Minister Philipp Roesler to revise his previous forecast of 1.8 percent growth for 2012 down to around 1 percent and a revision of his 2011 forecast to 2.9 percent down from three percent.

In Italy, Prime Minister Silvio Berlusconi is expected to nominate a replacement for Mario Draghi at the helm of the Bank of Italy. The frontrunner to replace Draghi, who is set to take over from Jean Claude Trichet at the ECB, is Lorenzo Bini Smaghi, according to a Wall Street Journal report.

In London, UBS rogue trader Kweku Adobole is scheduled to appear before a magistrates court for his second committal hearing on Thursday.

Key corporate releases out of Europe on Thursday include Nokia third quarter data, which analysts are predicting will show further losses for the world’ biggest mobile phone producer.

Swedish rival Ericsson beat expectations on Thursday posting core profit of $955 million, however the company’ gross margin of 35 percent fell short of analyst predictions of 37 percent.

Nestle announced third quarter sales at 6:15, upping its sales growth outlook for the year after sales rose 7.3 percent, beating forecasts of 7.1 percent. Price increases and strong sales in emerging markets helped boost sales for the world’ largest food group.

Drink giant Pernod Ricard saw first quarter sales beat forecasts on Thursday with an 11 percent rise in underlying sales. The world’ second largest liquor producer said it was aiming for a rise of around 6 percent in underlying profit for the year to June 2012 after achieving an 8 percent profit increase in 2010/11.

French firm Schneider Electric reported a 7.7 percent rise in third quarter sales early Thursday and said it was set to meet its sales growth target for the year.

Economic data on Thursday will focus on Germany, where PPI data is released at 7:00 UK time and UK retail sales figures are released at 8:30.