Just days after the announcement that Tokyo would host the 2020
Olympic games, the nation's revised second quarter GDP came in
higher than expected and added to Japan's momentum. Revised
Japanese GDP showed an annualized growth of 3.8 percent, rather
than the preliminary estimate of 2.6 percent.
The figures demonstrated the strength of the nation's recovery
and add to evidence that the Japanese economy can withstand next
year's planned sales tax increase.
In other news around the markets:
US President Barack Obama is set to continue trying to garner
support in Washington for his plan to launch targeted military
attacks in Syria. Congress is expected to vote on the matter this
week, while the House won't vote until the following week. So far,
Obama has faced opposition from several members of Congress who
believe his proposal is too broad. Tony Abbott has been elected
Australia's new Prime Minister on promises of tax cuts designed to
help boost the sagging economy. Abbott is the first conservative
leader the nation has had in six years, but he may face opposition
as he tries to deliver on his campaign promises; his party lacks a
majority within the current Senate, which finishes its term in July
2014. As votes for the newly elected senate are tallied, it seems
smaller fringe parties may tip the balance of power out of Abbott's
favor. Italy's Senate Committee will determine whether or not
Silvio Berlusconi will be forced to resign from holding government
office, or if he will be allowed to finish his term. Berlusconi was
found guilty of tax evasion, and as part of his sentence, he is
banned from holding public office. However, Berlusconi has
threatened to take down the government if he is not allowed to
finish his current term. A trading error that disrupted China's
mainland stock exchange on August 16 is going to cost China
Everbright Securities Co. $85.5 million. Additionally, the company
will be required to pay $86 million in fines for insider trading
violations following the glitch. Shortly following the RBI's new
Governor Raghuram Rajan's announcement of his plans to help curb
the rupee's decline, the bank began to ease investment rules in an
effort to increase cash inflows. On Friday, the bank announced that
controlling shareholders who want to buy additional shares of the
same company will be allowed to do so directly through brokers.
Under the old rule, shares had to be purchased off-market which
made the process complicated and time consuming.
Asian markets were up across the board on Monday. The Japanese
NIKKEI was helped by better than expected GDP and the announcement
that Tokyo would host the 2020 Olympics and gained 2.48 percent.
The Shanghai composite was up 3.39 percent and the Shenzhen
composite rose 1.33 percent. The South Korean KOSPI was up nearly a
percentage point and the Hang Seng index gained 0.44 percent.
European Markets began the week on their back foot with losses
across the board. The STOXX 600 lost 0.14 percent and the UK's FTSE
was down 0.10 percent. France's CAC 40 was down 0.36 percent and
the Spanish IBEX lost 0.91 percent.
Energy futures lost ground on Monday, WTI futures were down 0.52
percent and Brent futures lost 0.38 percent. Gold was up 0.05
percent but silver lost 0.49 percent. Industrial metals gained
across the board, Copper was up 0.29 percent and aluminum was up
The yen hovered below the 100 yen to a dollar mark at 99.56 and
the euro to dollar ratio was little changed. The pound gained 0.15
percent against the greenback and the rupee continued its comeback
gaining 1.17 percent against the dollar.
Earnings Reported Yesterday
Notable companies that reported earnings on Friday included:
UTi Worldwide Inc. (NASDAQ:
) reported second quarter EPS of $0.05 on revenue of $1.13 billion,
below expectations of EPS of $0.14 on revenue of $1.15 billion.
Stocks moving in the pre-market included:
Kellogg Co (NYSE:
) gained 0.20 percent in pre-market trade as the company worked to
promote its new "To Go" breakfast health shakes. PulteGroup Inc.
) was up 0.19 percent in pre-market trade ahead of the company's
presentation at RBC Capital Markets' Global Industrials Conference
on Tuesday. Perrigo Co (NYSE:
) lost 0.40 percent in pre-market trade after reports that the
company's Executive Vice President sold 780 shares on September 5.
Click for the week of September 9
Notable companies expected to report earnings on Monday
Triangle Petroleum Corporation (NYSE:
) is expected to announce EPS of $0.14, compared to last year's
loss of $0.02 per share.
On Monday's economic calendar, we saw the release of Japanese
revised GDP and Japanese household confidence. Still to come is US
consumer credit, eurozone investor confidence and Switzerland's
unemployment rate and retail sales data.
Good luck with your trades!
Check out Benzinga's complete outlook for the week of September
For a recap of Friday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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