Every morning ValueWalk puts out a news report with the latest news in global stock markets, company news, and global economic news.
- US: Dow Futures: 12863.00 (0.10%), S&P 500 Futures: 1377.20 (0.17%), NASDAQ Futures: 2736.25 (0.28%)
- Europe: CAC: 3271.11 (-1.50%), DAX: 6709.24 (-0.97%), FTSE: 5672.52 (-0.89%).
- Asia-Pacific: Australia: 4292.30 (-0.64%), China: 2305.86 (0.87%), Hong Kong: 20356.24 (-1.16%), India: 5243.60 (0.18%), Japan: 9538.02 (-0.09%).
- Metals: Gold: 1647.80 (0.24%), Silver: 31.64 (0.38%), Copper: 3.74 (0.52%)
- Energy: Crude Oil: 101.92 (-0.51%), Natural Gas: 2.11 (0.28%)
- Commodities: Corn: 6.50 (-1.38%), Soya Bean: 14.41 (0.05%), Wheat: 6.47 (0.61%)
- Currency: EUR/USD: 1.3133 (0.21%), GBP/USD: 1.5878 (-0.09%), USD/JPY: 81.0700 (-0.52%)
- 10 year US Treasury: 2.033% (-0.012)
Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring Point72 Asset Management losing about 10% in January, Millennium Management on a hiring spree, and hedge fund industry's assets under management swell to nearly Read More
Market and Economy News Update
U.S. stock-index futures poised to open slightly higher: U.S. markets are poised to open marginally higher on Tuesday, as investors gear up for the latest round of corporate results. The Dow, S&P 500 and Nasdaq futures were trading mildly in the green.
European markets slide: European markets fell sharply on Tuesday, the first day of trading after the release of the disappointing U.S. jobs data on Friday. The FTSE 100 (INDEXFTSE:UKX) and the German DAX (INDEXDB:DAX) were down around a percent, while the CAC 40 (INDEXEURO:PX1) was trading 1.7 percent lower.
German exports rose in February: German exports increased for a second consecutive month in February, rising 1.6 percent to €91.3 billion ($119 billion), after reporting a 3.4 percent month-on-month increase in January, the Federal Statistical Office said.
French business confidence stagnates: Bank of France’s business sentiment indicator for industry was stagnant in March at 95. In a separate survey, the INSEE national statistics office said manufacturing production fell 1.2 percent in February, after slipping a revised 0.1 percent in January.
Asian markets finish lower: Asian markets fell on Tuesday after China reported an unexpected trade surplus and the Bank of Japan didn’t add to monetary stimulus. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closed down for the sixth consecutive day, reversing gains made earlier in the day. The Shanghai Composite Index (SHA:000001) was the stand-out performer in the region as the slowing of growth in imports and exports raised hopes that the government will take steps to revive the world’s second-biggest economy. The HANG SENG INDEX (INDEXHANGSENG:HSI) fell to a two and a half month low will big banks being the biggest laggards. The S&P/ASX 200 (INDEXASX:XJO) index dropped for the third consecutive day as growth worries in China, Australia’s biggest trade partner, made investors nervous.
China reports trade surplus in March: China posted an unexpected trade surplus in March, mainly due to weaker imports, casting fresh doubts over the outlook for the world’s second-largest economy. According to data released by General Administration of Customs, China recorded a $5.35 billion trade surplus in March, reversing from a deficit a month earlier. Imports grew 5.3 percent, much below the 9 percent analysts were expecting. China’s exports in March rose 8.9 percent over a year earlier.
Company News Update
- Alcoa Inc. (NYSE:AA), the biggest U.S. aluminum producer, rose 1 percent in early New York trading, and will be the first company in the Dow Jones Industrial Average to report first-quarter earnings, post market close today.
- Chesapeake Energy Corporation (NYSE:CHK) gained 1.6 percent in New York after the second-largest U.S. natural-gas producer announced $2.6 billion in asset sales that should help fund development and cut debt.
- Dell Inc. (NASDAQ:DELL), the third-largest maker of personal computers, jumped 1.7 percent after Morgan Stanley upgraded the stock to “equal weight”, the equivalent of hold, from “underweight”.
- U.S.-traded shares of Sony Corporation (ADR) (NYSE:SNE) were down 8.2 percent in premarket trading after the electronics maker announced it expects an annual loss of more than double of what it had previously forecast.
- Vivus, Inc. (NASDAQ:VVUS) slumped 1.2 percent in pre-market trading after the Food and Drug Administration delayed a decision on whether to approve its Qnexa obesity pill.
- Randgold Resources Limited (LON:RRS) (NASDAQ:GOLD) soared 9.5 percent, the most in more over two years, after Mali’s military junta agreed to hand over power in the country to a temporary government that will organize elections. Mali accounts for about two- thirds of the miner’s gold output.
- Thomas Cook Group plc (LON:TCG) rallied 13.2 percent in London trading, after the travel company said talks with its banks on extending its financing arrangements were in an advanced stage.
- British transport company, FirstGroup plc (LON:FGP) plunged 6 percent after Barclays Capital downgraded the stock to “equal-weight” from “overweight”.
- STMicroelectronics N.V. (EPA:STM) (NYSE:STM) dropped 5.1 percent after the chipmaker lowered its first-quarter gross-margin forecast.
- SBM Offshore N.V. (AMS:SBMO), the world’s biggest supplier of floating oil and gas platforms, tumbled 7.9 percent, after saying it hired forensic accountants to investigate alleged improper sales practices.
- Sharp (TYO:6753) plunged 4.3 percent in Tokyo trading after news reports said the electronics maker was expected to post a bigger than expected net loss for fiscal year 2011, due to poor sales of televisions and solar cells.
- Property developers were among the major gainers on Chinese mainland bourses, with Gemdale Corporation (SHA:600383) rising 4.5 percent in Shanghai, and China Vanke Co., Ltd (SHE:000002) closing 2.4 percent higher in Shenzhen. Poly Real Estate Group Co., Ltd (SHA:600048), China’s second-largest developer by market value, gained 3.3 percent in Shanghai after contracted sales soared 47 percent in March.
- Exporter Li & Fung Limited (HKG:0494), which manages supply chains for retailers including Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT), slumped 4.5 percent in Hong Kong due to lacklustre U.S. data.
- Australian regional pay-TV firm Austar United Communications Limited (ASX:AUN) bucked the broad market trend to gain 2.7 percent in Sydney after the Australian Competition and Consumer Commission (ACCC) cleared a $2 billion takeover by Foxtel.
Economic Calendar for Tuesday, April 10, 2012:
07:30 A.M. ET: NFIB Small Business Optimism Index (March)
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, April 07, 2012)
08:55 A.M. ET: Redbook (Week ending Saturday, April 07, 2012)
10:00 A.M. ET: Wholesale Inventories (February)
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (April)
10:30 A.M. ET: Boston Federal Reserve Bank President Eric Rosengren speaks.
11:30 A.M. ET: 4-Week Bill Auction
12:30 P.M. ET: Dallas Federal Reserve Bank President Richard Fisher speaks.
12:45 P.M. ET: Atlanta Federal Reserve Bank President Dennis Lockhart speaks.
01:00 P.M. ET: 3-Yr Note Auction