Morning Spread

Morning Spread

Monday 6th January 2014
IndexLevelChg (%)
UK Market6718.36-0.17
Dow Indust Avg16469.99+0.17
S&P 5001831.37-0.03
Nasdaq Composite4131.91-0.27
Nikkei 22515908.88-2.35
Hang Seng22684.15-0.58
IndexLevelChg (%)
Nymex 1m94.24+0.30
Gold Spot1237.93+0.07
GBP/USD1.636-0.41
GBP/EUR1.2036+0.32
EUR/USD1.3593-0.09
USD/JPY104.52unch

US equities were mixed on Friday after suffering New Year losses the day before. Signs of the growing consumer confidence were evident in retail sales with Abercrombie & Fitch up 2.44% and The Gap rose 2.10%. Technology and Telecoms were generally weaker with Apple down 2.20%, China Mobile lost 1.33% and Verizon was 1.18% lower. Trading volumes were low, held back in part by a series of snowstorms. There were comments that interest rates were likely to increase in late 2014 and bonds were weaker. Financials were stronger with Citigroup up 2.16%, Bank of America up 1.92% and Morgan Stanley up 1.55%.

Asia was weak overnight as concerns grew over the Chinese economy and it’s falling momentum. A gauge of service sector sentiment fell to 50.9 from 52.5 the previous month. The rail sector was weak with China Railway losing 4.2% after the president of the company was killed in a fall. Other fallers included CSR down 3.9% and Guangshen Railway was down nearly 5%. Coal prices were also weak and China Coal Energy fell 3.4% and Shenhua lost 3.5%. Japan fell as a stronger currency negatively impacted stocks and the Nikkei lost 2.35%. Exporters were in the firing line with Toyota down 2%, Sharp Corporation lost 2.1% and Casio Computer was 2.8% lower. In Australia the Banking sector was poor with Westpac down 0.7% and National Australia Bank fell 0.4%.

Europe has opened on a firmer footing with banks in good order, with Santander up 1.55%, Commerzbank up 2.12% and Societe Generale up 1.50%. Other risers include Metro up 1.47%, Vestas up 2.78% and Peugeot up 1.33%. In the UK, RSA Insurance is 5.6% higher after bullish comment from UBS, that the troubled company is unlikely to need to sell parts of the business or raise fresh funds. Miners are weaker on the Chinese data with Rio Tinto down 1.23%, Randgold is down 1.50% and BHP Billiton is 0.75% lower.