Carnival Plc may decline after its Costa Concordia cruise liner ran aground off Italy’s Tuscan coast killing at least five people. Cie. Financiere Richemont SA may climb after the luxury- goods maker reported better-than-estimated revenue
Futures on the Euro Stoxx 50 Index, a benchmark for the euro area, were unchanged 2,327 at 7:28 a.m. in London. FTSE 100 Index futures slid 0.2 percent. The March contract on the Standard & Poor’s 500 Index fell 0.4 percent. The U.S. market is closed for a holiday today. The MSCI Asia Pacific Index dropped 1.2 percent.
“While the downgrades to France may not be too surprising to markets, it is still disappointing news,” said Dominic Rossi, chief investment officer for equities at Fidelity Worldwide Investment in London. “The euro-zone crisis is now dominating market activity again, after a period in which better economic news from the U.S., and easier monetary policy in China had helped markets move higher.”
The benchmark Stoxx Europe 600 Index erased its gains on the final day of trading last week after reports that S&P planned to downgrade several euro-area countries. The gauge still climbed 0.7 percent over the week as euro-area nations sold debt.
S&P Downgrades France
The rating company downgraded France to AA+ from AAA with a negative outlook after the close of European trading on Jan. 13. It cut Cyprus, Italy, Portugal and Spain by two grades, while also lowering the long-term ratings on Austria, Malta, Slovakia and Slovenia.
Germany, Belgium, Estonia, Finland, Ireland, Luxembourg and the Netherlands had their ratings affirmed by S&P.
The euro weakened for a second day today, touching an 11- year low versus the yen and extending a six-week drop against the greenback, before a series of debt auctions this week which begins with France’s bill sale today.
The French government plans to sell as much as 8.7 billion euros ($11 billion) of bills today. It will offer notes due in 2014, 2015 and 2016 and inflation-linked securities on Jan. 19.
Fiscal Deficit Rules
European leaders will this week try to rescue under-fire efforts to deliver new fiscal rules and cut Greece’s debt burden as they urge investors to ignore the S&P downgrades.
Greek officials will reconvene with creditors on Jan. 18 after discussions stalled last week over the size of investor losses in a proposed debt swap, raising the threat of default. German Chancellor Angela Merkel and French President Nicolas Sarkozy will also meet as the European Central Bank warns governments against “watering down” a revamp of budget laws.
Carnival may retreat after its cruise liner capsized off the Italian coast on Jan. 13, injuring about 60 people. The ship, carrying more than 4,000 passengers and crew, hit submerged rocks in the Tyrrhenian Sea. Rescuers are still searching for as many as 17 people.
Morgan Stanley lowered its recommendation for the shares to “equal weight” from “overweight.”
Other travel companies may also be active today, including TUI AG and Thomas Cook Group Plc.
Richemont may advance after the world’s second-largest luxury goods maker reported 24 percent growth in third-quarter revenue to 2.62 billion euros ($3.31 billion), as sales of Cartier jewelry increased in Asia. That beat the median analyst estimate of 2.54 billion-euros.
Hochtief AG may be active after Leighton Holdings Ltd., Australia’s largest construction company, said preliminary first-half earnings beat its forecast, led by profit in Asia and Australia. Leighton is majority owned by Hochtief.
Holcim Ltd. may retreat after the world’s second-largest cement maker said it will book a 775 million-franc ($811 million) charge in the fourth quarter after writing off investments in South Africa and revaluing assets in sluggish markets from Spain to the U.S. (source Bloomberg ) For the latest updates on the stock market, visit Stock Market Today
Carnival Plc shares jan 16 2012, Holcim Ltd. stock january 16 2012, Leighton Holdings Ltd, Morgan Stanley, Hochtief AG, Euro Stoxx 50 Index futures, benchmark Stoxx Europe 600 Index For the latest updates PRESS CTR + D or visit Stock Market news Today
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