Morning Spread

Morning Spread

Monday 1st December 2014
IndexLevelChg (%)
UK Market6647.91-1.11
Dow Indust Avg17828.24unch
S&P 5002067.56-0.25
Nasdaq Composite4791.63+0.09
Nikkei 22517590.10+0.75
Hang Seng23367.45-2.58
IndexLevelChg (%)
Nymex 1m64.83-1.98
Gold Spot1163.37-0.35
GBP/USD1.5673+0.18
GBP/EUR1.2578-0.12
EUR/USD1.2459+0.06
USD/JPY118.28+0.29

After the Thanksgiving holiday, the US equity market was only open for half a day but that did not stop a further collapse in the share prices of Energy companies. The crude oil price has continued to fall and Halliburton lost 10.8%, Transocean was down 9.7%, Chevron declined 5.4% and Schlumberger was down 7.4%. Gainers mostly centred on the health of the consumer and this confidence will be boosted further by the falling energy prices. Wal-Mart was up 3%, Target gained 2.5%, Amazon was up 1.5% and Time Warner rose 1.6%. The US Dollar continued to strengthen.

Asia was mixed overnight with a notably poor performance in Hong Kong, which fell nearly 2.6% after poor Chinese economic data. The official factory index fell to 50.3 from an estimate of 50.5, which represents a reading very close to economic contraction. Macau casino revenue declined for a sixth straight month and Galaxy lost 2.6% and Sands China fell 2.1%. Energy shares were awful with PetroChina down 4.4%, Sinopec fell 4.1% and Cnooc dropped 5.5%. In Australia, Qantas rose 4.7% on lower input costs and the stock is now up 84% year to date.

In Europe there are widespread declines as a result of the poor Chinese data and some initial concerns that the US holiday spending was at the lower end of expectations. Vodafone is also in focus down 2.5% on reports that the company is considering a bid for Liberty Global. The mobile giant feels it needs to become more active in the face of BT Group moving into mobile. In the Construction sector, Balfour Beatty is up 4.6% after receiving a bid for some of its portfolio assets of £1 billion. In Germany, E.On is up 3.6% as the utility announce plans to break itself up to focus on renewable energy.