FROM THE FLOOR NEWSLETTER

May ’13
22

ETX Capital - UK Market: At 0500 BST today, FTSE 100 futures are trading 1.2 points lower.
The Times newspaper reported that IMF is likely to urge the UK Treasury to quicken the disposal of its stakes in Royal Bank of Scotland and Lloyds Banking.
Sky News reported that Britvic’s proposed merger with rival AG Barr may not happen following the former’s intention to outline plans for tens of millions of pounds in annual cost savings.

European Market: At 0500 BST today, German DAX Xetra 30 futures are trading 0.5 points lower, while French CAC-40 futures are trading 1.4 points higher.
Deutsche Telekom abandoned its plan to replace fixed-line connections in individual new-build areas with wireless connections.
EDF signed an exclusive deal worth €400 million with Energeticky a Průmyslový Holding, for the sale of its 49% minority stake in Stredoslovenská Energetika.

US Market: At 0500 BST today, DJIA futures are trading 1.0 point higher.
Yesterday, the DJIA closed 0.3% higher, to settle at 15,387.6. NASDAQ advanced 0.2% to close at 3,502.1. S&P 500 advanced 0.2% to end at 1,669.2.
US markets ended higher yesterday, following St. Louis Fed President Bullard’s comment that the central bank should persist with its bond buying program to boost the economy. However, gains were kept in check amid some caution among investors who awaited Fed Chairman, Ben S. Bernanke’s testimony on the outlook for the US economy and FOMC’s minutes of its 30 April -1 May meeting.
JPMorgan edged up 1.4%, after shareholders refused to split the Chairman and CEO responsibilities of Jamie Dimon.
Home Depot added 2.5%, after it reported first-quarter profit that beat analysts’ estimates. Peer, Lowe’s Cos rose 0.2%, ahead of the release of its quarterly results.
Clearwire Corp surged 4.3%, after Sprint Nextel upped its bid for the company with an aim to urge its shareholders to reject a proposal from Dish Network.
After the closing bell, Dycom Industries advanced 12.7%, after its fourth-quarter outlook topped consensus estimates, while AMAG Pharmaceuticals dipped 5.3%, on reports that its distributor has recalled a batch of ferumoxytol, its treatment for iron deficiency.

Asian Market: Asian markets are trading higher this morning, ahead of the release of Bank of Japan’s policy decision today and following indications that the US Federal Reserve might not wind down its asset purchase program.
In Japan, Sony Corp is trading higher after the Nikkei Newspaper reported that the company’s board might discuss spinning off its entertainment unit. Sojitz Corp paced gains, in anticipation that the company might post an upbeat pre-tax profit.
In Hong Kong, the morning session was cancelled due to a rain storm.
In South Korea, LG Innotek added value, amid speculation that the company might post more than double annual gain in its second quarter operating profit. Hanjin Shipping paced higher, following the successful completion of its 300 billion won bond issue.
Nikkei 225 is trading 1.2% higher, at 15,560.0 and Kospi is trading 0.5% higher at 1,991.1. Yesterday, Hang Seng closed 0.5% lower, at 23,366.4. 


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