Morning Spread

Morning Spread

Friday 6th February 2015
IndexLevelChg (%)
UK Market6841.04-0.36
Dow Indust Avg17884.88+1.20
S&P 5002062.52+1.03
Nasdaq Composite4765.09+1.03
Nikkei 22517648.50+0.82
Hang Seng24679.39-0.35
IndexLevelChg (%)
Nymex 1m52.15+3.35
Gold Spot1267.15+0.18
GBP/USD1.5311+0.08
GBP/EUR1.3366-0.05
EUR/USD1.1454+0.03
USD/JPY117.36-0.06

US equities powered higher on Thursday and erased their losses for 2015. The volatility in the crude oil price continued with a near 7% gain, following the near 9% fall on Wednesday. Today will see nonfarm payroll data released, which will provide valuable input into the timing of Fed rate rises. There is still a feeling that Janet Yellen would like to act sooner rather than later. In corporate news, Pfizer agreed to buy Hospira for $17 billion. The company is the biggest provider of injectable drugs and represents a nice addition for Pfizer, Hospira rose 35% on the deal. Other gainers included Freeport-McMoRan up 7.1%, Frontier Communications was up 5.8% and Alcoa rose nearly 4%.

Asia was mixed with advances in the Japanese market offset by declines in Chinese related stocks. There are fears after last year’s meteoric rise in China that many company’s are planning to cash in and sell extra shares. This could create an overhang, at the very time that economic growth continues to slow. PetroChina fell 2.33%, Bank of China lost 2.91% and China Yangtze Power declined 4.2%. In Japan, Nisshin Steel was the biggest Nikkei riser up 19% as the company boosted revenue/profit forecasts by 23%. Other gainers included NHK Spring up 13%, Mitsubishi Estate was up 4.5% and Sumitomo Forestry gained 5.3%. Suzuki was an exception falling nearly 6% as the company lowered revenue forecasts.

Europe is being held back by further Greek fears this morning and also talks in Moscow regarding Ukraine, although the firmer crude oil price is boosting the Energy sector. Statoil is up 2.5%, Seadrill is nearly 3.5% higher and Rosneft is up nearly 1.5%. In the UK, Tate & Lyle is 12% lower on a profit warning, held back by the Bulk Ingredients division. Other fallers in Europe include Anheuser down 1.6%, Cap Gemini is down just over 1% and Nokia is nearly 1.5% lower. In Geopolitics, the French and German leaders are presenting a peace plan to Vladimir Putin, few expect much progress on Ukraine.