Adobe Systems Inc’s fiscal second-quarter net income fell 41% to $126M, or 24 cents a share, from $214.9M, or 40 cents, in the year earlier period. Revenue fell to $704.7M from $886.9M.
Alvarion Ltd said it received a more than $100M five-year contract to provide Colo.-based Open Range Communications Inc. with a wireless broadband network and services.
FedEx Corp reported a larger quarterly loss of $876M, or $2.82 compared to a loss of $241M, or 78 cents a share, in the fourth quarter of fiscal 2008. The company didn't issue a full-year forecast, citing uncertainty about the recovery and jet fuel prices.
Morgan Stanley reportedly will begin repaying the U.S. Treasury.
EUR/USD extends gains to near $1.3920 area where chatter overnight had suggested Asian sovereign sales of the pair. The overnight high at $1.3927 not yet pierced.
The dollar dropped to the lowest level versus the yen in two weeks
as slower-than-forecast monthly inflation in May led traders to reduce
bets the Federal Reserve will boost the target lending rate. The
U.S. currency weakened after a Labor Department report showed consumer
prices had the biggest 12-month drop since 1950. Consumer prices
increased 0.1% in May, after no change in the prior month, the Labor
Department reported. In the 12 months ended in May, costs fell 1.3%,
the biggest decline in almost 60 years. Interest-rate futures
indicated a 46% chance the Fed will boost the zero to 0.25% target rate
for overnight lending between banks to at least 0.5% by its December
meeting, down from 64% odds a week ago. The pound fell against
the euro and dollar as Bank of England minutes indicated policy makers
voted unanimously this month to extend asset purchases to keep interest
rates low.
EUR/CHF saw prints under Chf1.5050, only to rebound smartly for trade to near Chf1.5070 as shorts scrambled to buy back. Trader reminding that SNB rate meeting takes place Thursday with the SNB facing the prospect of a firm currency, euro-Swiss still about 100 pips below the 200d ma, another trader reminds. EUR/CHF last around Chf1.5060.
EUR/USD continues to chop back and forth inside $1.3830/80 area with latest foray higher seen as Dow stocks posted gains but with flows described as relatively muted as the pair flounders for fresh direction. Bids remain intact ahead of $1.3800, supply atop $1.3930.
The S&P 500 stands down 3 pts at
909.11 after trading in a 904.23 to 913.25 range. Traders are watching
to see if the index will close below its 200-day moving average,
currently at 906.03. The S&P has closed above its 200-day since
June 1. A clear cut break and close below the 200-day is likely to then
target the larger support area around 877-880, which is expected to act
also as a pivot zone.
Stocks churn and slide for a third straight session as investors mull the economic outlook, FedEx and Obama's plan for financial reform. Stocks were mostly lower Wednesday morning, falling for the third straight session, as FedEx's dour outlook and questions about President Obama's plan for financial reform weighed on markets. Wednesday's economic news brought some relief. The Consumer Price Index (CPI), measure of consumer inflation, posted a decline of 1.3% over the past year, the biggest year-over-year decline since 1950. The report also showed that inflation has not picked up in the last month, despite rising oil and gas prices and trillions in government spending. The Consumer Price Index (CPI) rose 0.1% in May, versus forecasts for an increase of 0.3%, according to economists CPI was flat in April. The so-called core CPI, which strips out volatile food and energy prices, rose 0.1% in May, meeting forecasts. Core CPI rose 0.3% in April. President Obama is expected to provide details later Wednesday on how he plans to reorganize the way banks and other firms are regulated, in the wake of the worst financial crisis since the Great Depression. FedEx reported a wider fourth-quarter loss that missed sales expectations but beat on a per-share-basis. The delivery firm, often seen as a proxy for the economy, forecast earnings of 30 to 45 cents per share in the current quarter, versus Wall Street's forecasts for a profit of 68 cents per share. FedEx's management gave a mixed outlook. The CEO said there are signs that the worst of the recession is over and the chief financial officer said the operating environment in the first two quarters in fiscal 2010 is going to be extremely difficult. FedEx shares fell almost 3%. Bonds: Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.63% from 3.66% Monday. Treasury prices and yields move in opposite directions. Other markets: U.S. light crude oil for July delivery fell 81 cents to $69.66 a barrel on the New York Mercantile Exchange. COMEX gold for August delivery lost $1.70 to $930.50 an ounce.
Losses extended to Y95.59 and pair remains close to that level, actually easing under at writing as bids here fall to further selling. Stops targeted under Y95.50.
"Rising vehicle prices in CPI to be odd. Given the glut of inventories in the auto sector we have expected vehicle prices to cool. Despite several months of solid gains we are sticking with this view for now."
European equity bourses are set to close lower Wednesday, seeing choppy trade during the afternoon, and pushing lower after the S&P-500 breaks through the 200-day moving average. Mining stocks have underperformed throughout the day with Rio Tinto (RIO) leading amid news that fees associated with it's much talked about rights issue, will push costs to more than $625mln. Falling crude prices have allowed the oil and energy sector to extend lows during the afternoon, with Total SA (FP) and BP (BP.) still weighing heaviest. FTSE -61.68 (-1.42%) at 4,266.89, CAC -64.10 (-1.99%) at 3,149.85, Dax -109.37 (-2.24%) at 4,781.35.
FOMC meeting statement should "acknowledge the recovery and begin articulating an exit strategy from near-zero rates and quantitative easing, even if the Fed makes clear that these steps remain well into the future."
17.06 14:32
EIA oil data for Jun 12 wk: "U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 3.9 million barrels from the previous week
17.06 14:23
Dow -11.19 at 8493.48, Nasdaq -6.51 at 1789.67, S&P -3.57 at 908.40
17.06 14:01
Morgan Stanley: "we expect core inflation to continue to decelerate steadily going forward as slack in the economy reaches unprecedented levels."
The stock market looks as if it will start the session near the unchanged mark, according to stock futures (S&P futures -1.8, Nasdaq futures +3.00). The tone had been somewhat upbeat earlier this morning, but FedEx put a damper on things by issuing downside guidance, which overshadowed better-than-expected quarterly earnings results. The Consumer Price Index caused little stir since it total CPI increased a bit less than expected and core CPI's moderate increase was in-line with expectations. Just announced at the top of the hour, Standard & Poor's lowered its ratings and revised its outlooks on 22 U.S. banks, citing the firm's belief that operating conditions for the industry will become less favorable than they were in the past. Bank stocks are generally trading lower in premarket action. Many of the major oil companies are also seeing their shares pressured as oil prices retreat 0.9% to $69.85 per barrel in early pit trading. The weakness in oil prices comes ahead of the weekly inventory data announcement at 14:30 GMT. Adobe (ADBE) reported last evening earnings for its latest quarter, during which the company brought in $0.35 per share. That was on par with expectations. Adobe also issued an in-line forecast for the third quarter, seeing earnings ranging from $0.30 to $0.37 per share, while the consensus stands at $0.33 per share. Shares of the company are down roughly almost 1% to $27.90 per share ahead of the opening bell.
Losses extend to Y95.85 area now as earlier noted demand interest and stops are flushed around Y96.00. Further stops eyed under Y95.70 area, decribed by one trader as "magnetic."
08:30 UK BoE meeting minutes (03-04.06) 08:30 UK ILO Jobless rate (3 months to April) 7.2% 7.1% 08:30 UK Average earnings ex bonuses (3 months to April) Y/Y 3.0% 08:30 UK Average earnings (3 months to April) Y/Y 0.8% -0.4% 08:30 UK Claimant count rate (May) 4.8% 4.7% 4.7% 08:30 UK Claimant count (May) 39,300 57.100 09:00 Е16 Apr SA trade balance -€0.3B -€1.5B -€2.1B 09:00 E16 Trade balance (April) unadjusted, bln €2.7B €0.4B
The pound fell for a third time in four days versus the dollar
after minutes showed Bank of England policy makers voted unanimously to
continue their asset-purchasing program this month, saying it was too
early to know if the measures designed to lower borrowing costs are
working. Claims for U.K. jobless benefits rose by 39,300 to 1.54
million, the Office for National Statistics said today. The benchmark
FTSE 100 Index of equities slipped to the lowest level since May 5. “Equity
markets have come off somewhat and that’s impacting on the pound,” said
Ian Stannard, a currency strategist in London at BNP Paribas SA. The
dollar earlier fell against the euro as traders pared bets the Federal
Reserve will raise interest rates this year amid signs deflation is
taking hold. A Labor Department report today may show consumer prices
fell 0.9 percent in the 12 months through May. “It’s too early to
talk about rate hikes and inflation when we still have deflation,” said
Geoffrey Yu, a currency strategist in London at UBS AG, the world’s
second-biggest foreign-exchange trader. “It’s highly unlikely the Fed
will shift course and focus on inflation and the broader theme in the
dollar is still down.” Traders bet there’s a 49.7 percent chance
the Fed will boost rates by at least a quarter-point to 0.5 percent at
its December meeting, down from a likelihood of 64.1 percent a week
ago, fed funds futures showed.
EUR/USD
posted session high at $1.3926, before eased to $1.3820. Minor stops
located under $1.3820. If triggered the test of $1.3805/00 bids zone is
likely.
GBP/USD after Bank of England minutes fell sharply from $1.6480 to $1.6220. Recovery met
resistance from around $1.6270, with sell interest said to extend
toward $1.6280. A break here to open a move up to challenge strength of
sell interest placed between $1.6300/10. A break above to open a move
on toward $1.6330. Support now seen at $1.6230/20. Break lower to extend losses to 21-DMA. currently at $1.6165.
USD/JPY traded in the middle of the Y96.77- Y95.95 range .
GBP/USD tech comments
Recovery off late European lows around $1.6230 seen meeting
resistance from around $1.6270, with sell interest said to extend
toward $1.6280. A break here to open a move up to challenge strength of
sell interest placed between $1.6300/10. A break above to open a move
on toward $1.6330. Support now seen at $1.6230/20. Break lower to extend losses to 21-DMA. currently at $1.6165.
Corrective pullback off European recovery highs at $1.3929 extends to
$1.3842, with rate currently trading around $1.3855. Bids seen placed
to $1.3835 (76.4% $1.3806/1.3929), with minor stops positioned on a
break of $1.3830. A break here to expose stronger demand interest
placed between $1.3805/00.
The pound fell for a third time in four days versus the dollar
after minutes showed Bank of England policy makers voted unanimously to
continue their asset-purchasing program this month, saying it was too
early to know if the measures designed to lower borrowing costs are
working. Claims for U.K. jobless benefits rose by 39,300 to 1.54
million, the Office for National Statistics said today. The benchmark
FTSE 100 Index of equities slipped to the lowest level since May 5. “Equity
markets have come off somewhat and that’s impacting on the pound,” said
Ian Stannard, a currency strategist in London at BNP Paribas SA. The
dollar earlier fell against the euro as traders pared bets the Federal
Reserve will raise interest rates this year amid signs deflation is
taking hold. A Labor Department report today may show consumer prices
fell 0.9 percent in the 12 months through May. “It’s too early to
talk about rate hikes and inflation when we still have deflation,” said
Geoffrey Yu, a currency strategist in London at UBS AG, the world’s
second-biggest foreign-exchange trader. “It’s highly unlikely the Fed
will shift course and focus on inflation and the broader theme in the
dollar is still down.” Traders bet there’s a 49.7 percent chance
the Fed will boost rates by at least a quarter-point to 0.5 percent at
its December meeting, down from a likelihood of 64.1 percent a week
ago, fed funds futures showed.
The S&P Sep contract was last 2.90 points higher at
910.70, with the Nasdaq contract up 6.25 points at 1450.50. The DJIA Sep
contract was also in positive territory, gaining 17 points to stand at
8476.
Resistance 3: Y99.60
Resistance 2: Y98.60
Resistance 1: Y97.80
Current price: Y96.18 Support 1: Y96.00
Support 2: Y95.20
Support 3: Y94.40
COMMENTS: Pair has just retested yesterday’s low around 96.10, where we saw a strong upside rebound . Rate tested key support
at Y96.00 (session low and 38.2% Fibo of Y110.70 - Y87.00 decline).
Below strong support comes at trend line from Jan 21 at Y95.20. Break
under will strengthen the bearish momentum and open the way to Y94.40
(Jun 01 low). Resistance is near Y97.80. Then – near
yesterday’s highs on Y98.60 and at Y99.60/70 (May 07 highs).
Resistance 3: Chf1.1150
Resistance 2:Chf1.1050 Resistance 1:Chf1.0950
Current price: Chf 1.0888
Support 1:Chf1.0740 Support 2:Chf1.0650
Support 3: Chf1.0600
СOMMENTS: Resistance comes near at
channel line from Apr on Chf1.0950. Above the target is on Chf1.1050
(May 21 high) and Chf1.1150 (50% of Chf1.1720 - Chf1.0590 move).
Support is near Chf1.0740, stronger – on Chf1.0650 (Jun 11 low). Then
the rate may decline to Chf1.0590/00 (Jun 02 low).
Resistance 3:$1.6580
Resistance 2:$1.6520 Resistance 1: $1.6420
Current price: $1.6340
Support 1: $1.6340 Support 2: $1.6200 Support 3: $1.6120
COMMENTS: The sterling has retreated after meeting renewed selling
below $1.6400, suggesting as long as this level holds. Resistance level
comes at $1.6420 (38.2% Fibo of $1.5804 -
$1.6612 rise). Further resistance is near $1.6520 (Jun 12 hourly high)
and above to $1.6580. Support is around $1.6340, then – at session lows
on $1.6200/10 and further at $1.6120.
Resistance 3:$1.4180
Resistance 2:$1.4040
Resistance 1:$1.3930
Current price: $1.3870
Support 1: $1.3800 Support 2: $1.3600
Support 3: $1.3440
COMMENTS: euro is under pressure after unsuccessful test of the closest resistance at June 16-17 high $1.3930.
Support comes at $1.3800 (session
low). Below correction may widen to $1.3600 (50% Fibo of $1.2880 -
$1.4330). Further downside target is around 61.8% Fibo on $1.3440. Break above $1.3930 will open the way to $1.4040 (Jun 12 hourly high).
Stronger resistance comes near $1.4180 (Jun 11 high).
-- Further reports of pick-up in housing market activity -- Housing pick-up seen in new build and secondary market -- Investment intentions remain exceptionally subdued -- Pace of destocking reportedly slowed -- Rate of decline in business services stabalising some -- Credit conditions remained overall tight -- Trade credit availability remains issue -- Consumer prices inflation remains positive.
--BOE MPC Agrees Near-Term Prospects Have Improved "Somewhat" --But Says Balance Of Inflation Risks Further Out Has Not Changed --Outlook For Credit Supply Remains "Constrained"
The yen declined from a three-week high against the euro
and weakened versus the dollar as speculation the global economy is
close to bottoming revived demand for higher-yielding assets. Japan’s
currency fell versus all of the 16 major currencies after Japanese
stocks rebounded, President Barack Obama said he’s confident growth in
the U.S. will begin “shortly,” and the Bank of Japan raised its
assessment of the economy. The dollar dropped against the euro after
the leaders of Brazil, Russia, India and China yesterday called for a
“more diversified” global monetary system. Singapore’s dollar gained
after a report showed exports dropped the least in eight months. “Japanese equities are surprisingly strong, which is reassuring investors,” said Akifumi Uchida,
Tokyo-based deputy general manager of the marketing unit at Sumitomo
Trust & Banking Co., Japan’s fifth-largest lender. “There’s
sentiment the worldwide slump is bottoming out, and they are putting
more funds overseas, which is causing selling of the yen.” The Euro has
pared losses from yesterday's decline, and, after having bounced at
1.3810, the Euro has reached Jun 16 high at 1.3930 on early European
session, although the pair has not been strong enough to break above
and pulled down to levels around 1.3900 at the time of writing.
Sterling´s recovery from 1.6355 intra-day low has capped at
1.6485 and the Pound is pulling down, reaching levels below 1.6400, to
test 1.6355 support.
The Dollar declined to 95.95 intra-day low on Asian session to bounce afterwards and reach levels around 96.70 at the time of writing.
- Swiss Apr Retail Sales +1.2% Real on Year
- Swiss Apr Retail Sales +10.0% Nominal On Year, Adjusted
- Swiss Apr Retail Sales +9.6% Real On Year, Adjusted
Data released 03:30 Japan BoJ meeting announcement 0.1% 0.1% 0.1% 06:30 Japan BoJ press conference 08:30 UK HICP (May) +0.6% 0.3% 0.2% 08:30 UK HICP (May) Y/Y +2.2% 2.0% 2.3% 08:30 UK HICP ex EFAT (May) Y/Y +0,4% 1.5% 1.5% 08:30 UK Retail prices (May) +0.6% 0.1% 08:30 UK Retail prices (May) Y/Y -1.1% -1.5% -1.2% 08:30 UK RPI-X (May) Y/Y +1.6% 1.3% 1.7% 09:00 Germany ZEW economic expectations index (June) -89,7 31.1 09:00 Italy CPI (May) final 0.2% 0.2% 0.2% 09:00 Italy CPI (May) final Y/Y 0.9% 0.9% 0.9% 09:00 Italy HICP (May) final Y/Y 0.8% 0.8% 0.8% 09:00 EU(16) Harmonized CPI (May) final 0.1% 0.0% 0.4% 09:00 EU(16) Harmonized CPI (May) final Y/Y 0% 0.0% 0.6% 09:00 EU(16) Harmonized CPI ex EFAT (May) Y/Y 1.5% 1.6% 1.8% 09:00 EU(15) Labour cost index (Q1) Y/Y 3.7% 3.8% 12:30 USA PPI (May) 0.2% 0.5% 0.3% 12:30 USA PPI (May) Y/Y -5.0% -3.7% 12:30 USA PPI excluding food and energy (May) -0.1% 0.1% 0.1% 12:30 USA PPI excluding food and energy (May) Y/Y 3.0% 3.4% 12:30 USA Housing starts (May), mln 0,532 0.490 0.458 12:30 USA Building permits (May), mln 0,518 0.505 0.494 12:55 USA Redbook (13.06) 13:15 USA Industrial production (May) -1.1% -0.6% -0.7% 13:15 USA Capacity utilisation (May) 68.3% 68.5 69.1
The U.S. currency fell against a basket of currencies after
Russian President Dmitry Medvedev commented ahead of Brazil, Russia,
India and China summit, so-called BRIC, that the existing reserve
currencies, including the U.S. dollar, have not performed their
functions and a creation of a new supranational reserve currency was
needed to be used for international settlements. However, the summit
ended with a communique which demanded more power for developing
nations in international financial institutions and the United Nations
without mentioning the U.S. dollar's role as a reserve currency.
Euro rose against the greenback
as Medvedev suggested a need for a global reserve currency other than
the U.S. currency ahead of BRIC summit. In European session, German
posted much better-than-expected Zew sentiment data which came in at
44.8 in June, surging from 31.1 in May. This gives hopes to investors
that German, the largest eurozone economy, will recover later this
year. In addition, the release of stronger-than-expected eurozone Zew
survey also helped lifting the pair. The single currency rose to high
as 1.3934 versus the dollar after the release of U.S. housing data.
However, euro then retreated from there partly due to the statement
from BRIC summit.
The British pound strengthened versus the greenback
on high inflation data. In European session, U.K. CPI came in at 0.6%
in May compared to the readings of 0.2% in April, boosting speculation
that Bank of England will raise interest rates by the end of this year.
Sterling hit an intra-day high of 1.6507 against the dollar in New York
morning trade before retreating on profit taking.
Earlier
in the day, Bank of Japan left the target overnight lending rate
unchanged at 0.1% and raised its view of the nation's economy for a
second month. The dollar dropped versus the Japanese yen to as low as 96.08 before rebounding on short-covering.
Data
to be released on Wednesday include Australia Westpac leading index,
Japan machine order, Switzerland industrial production, retail sales,
U.K. BOE meeting minutes, ILO unemployment, eurozone trade balance,
Canada leading indicators, U.S. CPI and current account.
Resistance 3: Y99.60
Resistance 2: Y98.60
Resistance 1: Y97.80
Current price: Y96.73 Support 1: Y96.00
Support 2: Y95.20
Support 3: Y94.40
COMMENTS: Pair has just retested yesterday’s low around 96.10, where we saw a strong upside rebound . Rate tested key support
at Y96.00 (session low and 38.2% Fibo of Y110.70 - Y87.00 decline).
Below strong support comes at trend line from Jan 21 at Y95.20. Break
under will strengthen the bearish momentum and open the way to Y94.40
(Jun 01 low). Resistance is near Y97.80. Then – near
yesterday’s highs on Y98.60 and at Y99.60/70 (May 07 highs).
- Ups Econ View In June Report For 2nd Straight Month
- Exports, Output Expected To Continue Recovering
- Japan Econ Likely To Show Clearer Signs Of Leveling Out
- Fincl Conditions Severe But Show Signs Of Improvement
- Firms' Funding Costs Have Declined Further
- CP, Corp Bond Issuance Conditions Improved Further
- Signs Of End Of Corporate Financing Deterioration
Resistance 3: Chf1.1150
Resistance 2:Chf1.1050 Resistance 1:Chf1.0950
Current price: Chf 1.0850
Support 1:Chf1.0740 Support 2:Chf1.0650
Support 3: Chf1.0600
СOMMENTS: Resistance comes near at
channel line from Apr on Chf1.0950. Above the target is on Chf1.1050
(May 21 high) and Chf1.1150 (50% of Chf1.1720 - Chf1.0590 move).
Support is near Chf1.0740, stronger – on Chf1.0650 (Jun 11 low). Then
the rate may decline to Chf1.0590/00 (Jun 02 low).
17.06 05:19
The Hang Seng ended the morning session down 1.32% at 17,925.72.
Resistance 3:$1.6580
Resistance 2:$1.6520 Resistance 1: $1.6420
Current price: $1.6410
Support 1: $1.6340 Support 2: $1.6200 Support 3: $1.6120
COMMENTS: The sterling has retreated after meeting renewed selling
below $1.6400, suggesting as long as this level holds. Resistance level
comes at $1.6420 (38.2% Fibo of $1.5804 -
$1.6612 rise). Further resistance is near $1.6520 (Jun 12 hourly high)
and above to $1.6580. Support is around $1.6340, then – at session lows
on $1.6200/10 and further at $1.6120.
Resistance 3:$1.4180
Resistance 2:$1.4040
Resistance 1:$1.3881
Current price: $1.3870
Support 1: $1.3800 Support 2: $1.3600
Support 3: $1.3440
COMMENTS: Euro's rebound after intra-day brief fall to $1.3806 suggests
consolidation with mild upside bias would be seen in Asia for gain.
Support comes at $1.3800(session
low). Below correction may widen to $1.3600 (50% Fibo of $1.2880 -
$1.4330). Further downside target is around 61.8% Fibo on $1.3440.
Resistance comes at $1.3880, then – on $1.4040 (Jun 12 hourly high).
Stronger level is near $1.4180 (Jun 11 high).
05:00 Japan BoJ monthly economic report (June)
08:30 UK Claimant count (May) 57.100
08:30 UK Claimant count rate (May) 4.7% 4.7%
08:30 UK Average earnings (3 months to April) Y/Y -0.4%
08:30 UK Average earnings ex bonuses (3 months to April) Y/Y 3.0%
08:30 UK ILO Jobless rate (3 months to April) 7.1%
08:30 UK BoE meeting minutes (03-04.06)
09:00 EU(16) Trade balance (April) unadjusted, bln 0.4
12:30 USA CPI (May) -0.8% 0.0%
12:30 USA CPI (May) Y/Y -0.7%
12:30 USA CPI excluding food and energy (May) 0.1% 0.3%
12:30 USA CPI excluding food and energy (May) Y/Y 1.9%
12:30 USA Current account (Q1), bln -90.0 -132.8
