Beat the Market – Today’s News 21/06/12

US Stocks declined, in choppy trade as investors waited for the central bank decision, which fell short of hopes for a third round of quantitative easing. The US central bank left rates on hold at 0.25%, Chairman Bernanke simply continued to say as he had before that the Fed had the tools to deal with geopolitical shocks and continued economic deterioration without any further detail with regards to QE3. Alternatively, the Fed’s Open Market Committee said it would extend “Operation Twist”, a balance sheet-neutral operation in which the central bank sells short-dated notes and buys longer-term debt. “Twist” will extend for another $267 billion. The Greenback trended broadly lower against a basket of currencies, following Chairman Bernankes’ comments.
European Stocks Advanced, sending the Stoxx Europe 600 Index to its highest level in more than a month to 249.67 at the close amid expectations the US central bank will announce more stimulus measures. Antonis Samaras, was sworn in as PM after political leaders agreed on a coalition which would adhere to austerity measures. Whilst, The Bank of England signalled that it was close to releasing a wave of new money into the shrinking British economy. Hence, Euro Banks – Banco Santander (€4.96, +2.7%), BBVA (€5.34, +3.4%), Credit Agricole (€3.4, +3.6%) – ended on a strong note. Albeit, Spanish 10-Year yields dropped a further to 6.75 per cent.
Financials led, Bank of America ($8.14, +0.4%) rising further. JPMorgan Chase ($36.45, +3.02%) the standout among US Banks after reports the banks has sold off the bulk of the trading positions in its Chief Investment Office that caused an estimated $2 billion in trading loss. Peers – Wells Fargo ($32.81, -0.46%), Citigroup ($28.86, +1.26%) – were mixed.
Adobe Systems ($31.99, -2.74%) Slid, after forecasting sales and profit that trailed some estimates, suggesting that weak demand in Europe could affect sales of recently launched versions of its popular design software. Procter & Gamble ($60.39, -2.93%) Declined, after cutting its earnings projections for the second time in two months.
Energy mixed with Oil & Gas Producers – Chevron ($103.63, -0.41%), ConocoPhillips ($54.44, -2.16%), Exxon Mobil ($84.97, +0.6%) – in line with choppy trade for August Crude – ending at $81.01/bbl.
Metals & Miners – Alcoa ($8.92, +0.22%), Cliffs Natural Resources ($51.73, +1.91%), Freeport ($35.31, -0.4%), US Steel ($20.10, -0.25%) – ended flat as commodities gave back some earlier gains from the week to finish lower. Gold regained some earlier losses to sit at $1,615.80/oz on the back of the Fed meeting and a further dip in Spanish yields.

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