Morning Spread

Morning Spread

Friday 5th December 2014
IndexLevelChg (%)
UK Market6723.67+0.66
Dow Indust Avg17900.10-0.07
S&P 5002071.92-0.12
Nasdaq Composite4769.44-0.11
Nikkei 22517920.45+0.19
Hang Seng24002.64+0.71
IndexLevelChg (%)
Nymex 1m66.19-0.91
Gold Spot1203.81-0.12
GBP/USD1.5668-0.04
GBP/EUR1.2675-0.06
EUR/USD1.2362-0.10
USD/JPY120.37-0.47

In the US the equity markets were mildly negative as investors expressed some disappointment at the extent of the ECB liquidity plans. In his regular letter to investors, bond guru, Bill Gross, highlighted the current dangers lurking in the bond market and that investors should reduce the duration of their holdings. He also highlighted the problems of Governments simply creating more debt to solve the aftermath of the credit crisis. Energy stocks slid on news that Saudi Arabia was reducing prices further, Transocean was down 4.5%, Chevron lost 1.25% and Exxon was 0.61% lower. Hawaiian Electric soared 14% on news of a takeover bid from Nextera.

Asia was broadly higher overnight with Chinese equities capping off the best weekly performance since 2009. Bank of China was up 3.5%, China Construction Bank was up 7% and Haitong Securities rose by a similar amount. In Australia investors were surprised at a near 50% takeover premium for mining supplies company, Bradken. However in the underlying mining sector, the recent weakness continued with BHP Billiton down 1.5%, Oz Minerals lost 5.78% and Atlas Iron was down 6.25%. Japan was quiet with few stand out features, although Sumco, which manufactures wafers for the semiconductor industry rose another 13% on industry optimism.

Europe is higher on Friday with broad based positive returns in most sectors. In the UK a positive report on Vodafone from a leading broker has seen the shares gain 2.6%. Other gainers in the UK include Carnival up just over 3%, Sainsburys is up 1.89% and Intertek is 4.20% higher. European Banks are strong today as optimism returns across the region with ING up 2.07%, BNP Paribas is up 2.18% and Credit Suisse is 1.39% higher. Other gainers include Danone up 1.31%, Kering up 1.52%, LVMH up 2.42% and Lafarge up 2.60%.