Morning Spread

Morning Spread

Friday 12th December 2014
IndexLevelChg (%)
UK Market6354.27-1.66
Dow Indust Avg17596.34+0.36
S&P 5002035.33+0.45
Nasdaq Composite4708.16+0.52
Nikkei 22517371.58+0.68
Hang Seng23249.20-0.27
IndexLevelChg (%)
Nymex 1m59.24-1.18
Gold Spot1224.89-0.22
GBP/USD1.5703-0.03
GBP/EUR1.2635+0.36
EUR/USD1.2427+0.33
USD/JPY118.40+0.81

US equities gave back early strong gains but still managed to close in positive territory, as investors were encouraged by positive economic data, although further falls in crude oil continued to spook investors. Estimates of retail sales rose 0.7% in November, boosted by online and auto sales. This boosted the retail sector with The Gap up 1.7%, Wal-Mart was up just over 1% and Home Depot gained 1.34%. Ford was up 0.8%, Facebook rose just over 2%, McDonalds was up 1.07% and Frontier Communications was up 1.39%.

Asia was broadly higher, although trading volumes were relatively light. The latest economic data from China was poor with November industrial output growth running at 7.2% year on year against an 8% reading in September. SAIC Motor, the largest car manufacturer was down 2.6% on the data, with China Eastern Airlines down 3.1% and Cosco Shipping down 2.5%. In Japan, Canon was up 3.9% after raising its dividend forecast. However the chemical company, Showa Denko, tumbled 9.5% after issuing a profit warning. In Australia there was some weakness in the Gold sector with Medusa down 4.5% and Regis down 3.6%.

Europe is weak once more with falls of 1-1.5% in most equity indices. Notable fallers include Carlsberg, the Danish brewer is down over 4% as a result of the exposure to the Russian market and the weak Ruble. Other stocks down include ING down 1.2%, Cap Gemini down 2% and BASF down 2.65%. In the UK, the FTSE 100 index is heading for it’s worst weekly performance since 2012 as commodity prices continued to be under pressure. Anglo American is down 2.13%, Centrica is 2.04% lower and Petrofac is down just over 4.5%. A less harsh than expected pricing review by the watchdog has left Water stocks higher with United Utilities up 3.44% and Severn Trent up 1.67%.