Morning Spread

Morning Spread

Wednesday 5th August 2015
IndexLevelChg (%)
UK Market6694.05+0.11
Dow Indust Avg17550.69-0.27
S&P 5002093.32-0.22
Nasdaq Composite5105.55-0.19
Nikkei 22520614.06+0.46
Hang Seng24514.16+0.44
IndexLevelChg (%)
Nymex 1m45.84+0.22
Gold Spot1086.53-0.11
GBP/USD1.5577+0.34
GBP/EUR1.4338+0.55
EUR/USD1.0864-0.89
USD/JPY124.37-0.32

European shares rose as several companies reported earnings. The ESTX 50 (+0.88%), CAC 40 (+0.91%), Dax (+0.85%) and the UK markets (+0.17%) all increased in early trading. Societe Generale jumped +7% after reporting better than expected earnings and said it would target a slightly bigger cushion of capital and higher cost savings.  Legal & General Group Plc added +3.3% after reporting first half earnings that beat analysts’ estimates. London Stock Exchange Group Plc gained +2.3% after posting higher than forecast first half operating profit.

 

US stocks retreated as investors worried about a rise in interest rates while Apple’s shares hit their lowest in over six months. The Dow Jones Industrial Average (-0.27%), S&P 500 (-0.22%) and the Nasdaq Composite (-0.19%) all decreased. Stocks extended losses after Atlanta Federal Reserve President Dennis Lockhart told the Wall Street Journal that September may be the right time to lift interest rates. Apple fell -3.21% to $114.64, firmly below their 200 day daily moving average, as a slowdown in China and scepticism over demand for iPhones contributed to pressure on the shares. After the bell, Etsy fell -9% and Walt Disney lost -1.4% after the companies posted quarterly results that disappointed Wall Street. First Solar jumped +10% after posting better than expected quarterly results.

 

Asian stocks were mixed as investors weighed comments from a Federal Reserve official ahead of US employment data. The S&P/ASX 200 (-0.42%) dropped, while the Nikkei 225 (+0.46%) and Hang Seng (+0.36%) both increased. Terumo surged +13% after saying profit jumped and it will buy back shares. Kajima added +6.8% after reporting net income more than doubled. Daikin Industries Ltd added +5% after the Nikkei newspaper said the company will post a 10% increase in operating profit. Fast Retailing Co dropped -4.7% after it reported a drop in sales at its Uniqlo stores. Leshi Internet slumped -6%, ZTE retreated -2.6% and Easy Money Information Co tumbled -4.8%.