Morning News Summary

23 Feb 2012

US Stocks Decline Amid Disappoints Economic Data

US stocks fell as sales of previously owned houses were below estimates and negative data from Europe and China dampened global growth profits. At time of writing, the S&P 500 had fallen -0.2% while theDowhad slid -0.1%. Purchases of previously owned homes climbed +4.3%, less than forecast. A gauge of European services and manufacturing output unexpectedly shrank in February and China’s manufacturing output is forecast to continue to decline.

A gauge of homebuilders dropped -2.6% led by Toll BrothersandKB Home, both decreasing -5.2%.Dell tumbled -6.4% as slow sales and shrinking profits last quarter have raised concerns its recovery. Financial shares dropped following losses in European banks.Citigroup and Regions Financialboth dropped -2.7%.

Europe, UK Stocks Fall On PMI Data

European stocks retreated after services and manufacturing output unexpectedly contracted in February. The Stoxx Europe 600 fell -0.8% at the close. A eurozone composite index dropped to 49.7 from 50.4 in January, below the forecast average of 50.5. Germany’s Purchasing Managers Index (PMI) showed that manufacturing expansion unexpectedly slowed in February amid declining orders.TUI, Europe’s largest travel company declined -7.6% after Banco sold a 12.9m block of shares. French real estate services companyNexitydropped -6.6% after FY12 profits were below estimates.

The FTSE 100fell -0.2% at the close.Vodafone slid -1.1% andRio Tinto declined -1.0% on the back of negative global economic data.Cove Energysurged +26.0% after Shell offered 195 pence for each share.

Asian, Japanese Stocks Rise

Japanese stocks rose led by caremakers as the Yen declined to 80 US cents, boosting earnings outlooks for exporters. The Nikkei 225 Stock Average rose +1.0%. Energy explorerInpex gained +1.4% as oil prices rose. NTT DoCoMo, the country’s largest mobile phone operator rose +2.0% on plans to expand capacity.Toyota gained +1.8% andNissan Motors climbed +2.3%.All Nippon Airwaysgained +2.1% after an analyst earnings upgrade.

Asian stocks rose ahead of the release of US housing market data, with the MSCI Asia Pacific Index gaining +0.1%. South Korea’sKospi Index rose +0.2% and Hong Kong’sHang Seng gained +0.3%. Chinese property developers gained on speculation China will further ease monetary policy, withAgile Property Holdings andEvergrande Real Estategaining +7.2% and +5.1% respectively.

ASX 200 Unchanged

The ASX 200finished flat adding less than +0.1%. Energy and Health Care were the best performing sectors, up +1.1% and +1.7% respectively. DrugmakerCSL gained +2.5% after raising its FY12 profit forecast andDowner EDIdeclined -2.5% after an analyst downgrade.

Crude And Gold

Crude fell -0.3% to $105.54, while gold gained +0.7% to $1,771.98.