Market Action
- US: Dow: 12708.82 (-0.09%), S&P 500: 1316.00 (0.05%), NASDAQ: 2784.17 (-0.09%)
- Europe: CAC: 3321.50 (-0.22%), DAX: 6404.39 (-0.19%), FTSE: 5728.55 (-0.22%).
- Asia: China: 2319.12 (0.99%), Hong Kong: 20110.37 (0.83%), India: 5046.25 (-0.05%), Japan: 8765.90 (-0.01%)
- Metals: Gold: 1677.50 (-0.05%), Silver: 32.32 (0.15%)
- Energy: Crude Oil: 99.58 (1.27%), Natural Gas: 2.52 (7.77%)
- Currency: EUR/USD: 1.3024 (0.0833%), GBP/USD: 1.5568 (0.0058%)
- 10 year US Treasury: 2.07% (0.04)
Market News Update
US markets flat: U.S. stocks closed the day flat, after drifting above and below the break even line Monday. Investors grew jittery amid uncertainty surrounding Greek debt talks. The Dow Jones industrial average closed down 12 points, or 0.1%. The S&P 500 gained 0.6 points, or 0.05%. The NASDAQ moved down 3 points, or 0.1%.
Oil up 1.3%: Crude-oil futures settled higher Monday after the European Union agreed to put an embargo on oil imports fromIran from July 1. The widely expected move advances U.S.-led global efforts to restrictIran’s economic lifeline over what it says isTehran’s refusal to halt efforts to gain nuclear weapons
Natural Gas jumps 7.8%: Natural-gas futures surged Monday after Chesapeake Energy Corp. announced it was curtailing production in response to low gas prices. Market participants took the announcement as a sign that producers are starting to respond to the sell off that has gripped the gas market all winter.
Germany floats idea of combining rescue funds: Germany floated the idea of combining Europe’s two rescue funds, in a concession to bolster the fight against the fiscal crisis as Greece bargained with bondholders over debt relief. Germany, Europe’s dominant economic power, gave the strongest signal yet that it would allow the roughly 250 billion euros left in the temporary rescue fund to be tapped once the permanent fund is set up.
Company News Update
- Texas Instruments Inc. (TXN) reported fourth-quarter sales and profit that topped analysts’ estimates, signaling that the market for electronic components is pulling out of a slump.
- BlackBerry maker Research in Motion (RIMM) announced co-CEOs Jim Balsillie and Mike Lazaridis will hand over the top job to former chief operating officer Thorsten Heins. After rising more than 3% in premarket trading, the stock closed down 8%, dragging on the tech-heavy NASDAQ.
- Oil and gas companies were among the biggest gainers, after Chesapeake Energy (CHK) announced it would cut natural gas production to drive up prices. Chesapeake Energy, Cabot Oil and Gas (COG), and Noble Energy (NBL) all gained more than 6%. Southwestern Energy (SWN) added more than 10%.
- Oilfield services giant Halliburton (HAL) released quarterly results that beat Wall Street estimates on both earnings and revenue, but its shares closed 2% lower.
- Minefinders Corp. (MFN), operator of the Dolores gold and silver mine in Mexico, rallied 23 percent after Pan American Silver Corp. agreed to acquire the company for about C$1.5 billion.
Hedge Fund News Update
- Redemption requests by hedge fund clients have fallen to the lowest monthly level on record as improving market sentiment combined with a typical seasonal lull in asset re-allocation, according to a report by Reuters.
- Peter Clarke, the head of Man Group , the world’s biggest listed hedge fund manager, is backing the reintroduction of the so-called ‘uptick rule’ to reduce the risk of a market crash prompted by lightning-fast computer traders.
- Marc Lasry’s Avenue Capital has reportedly seen its recent European-centered fund reach the $2 billion mark. The fund has been set up by the distressed-debt hedge fund firm to purchase debt, equities or other financial obligations of financial struggling companies inNorthern Europe, according to news reports.
- Avoca Capital Holdings, the Dublin- based investment firm, hired Rachel Black from Concerto Asset Management as head of capital raising for its credit hedge fund business.
- Hedge fund Diamondback Capital Management LLC agreed to pay more than $9 million to settle with the Securities and Exchange Commission over insider-trading charges brought by the commission last week, according to the agency Monday. The SEC said that as part of the settlement, Diamondback agreed to give up about $6 million of allegedly ill-gotten gains and pay a $3 million civil penalty.
- · Algebris Investments, the financials hedge fund manager backed by Chris Hohn’s the Children’s Investment Fund, saw its flagship Global Financials fund slump 46% last year. The €1.29bn flagship European fund of Odey Asset Management dropped 20.6%.
