Morning Spread

Morning Spread

Monday 23rd September 2013
IndexLevelChg (%)
UK Market6588.72-0.12
Dow Indust Avg15451.09-1.19
S&P 5001709.91-0.72
Nasdaq Composite3774.73-0.39
Nikkei 22514742.42-0.16
Hang Seng23371.54-0.56
IndexLevelChg (%)
Nymex 1m104.71-0.04
Gold Spot1327.98+0.15
GBP/USD1.6039-0.16
GBP/EUR1.1864+0.20
EUR/USD1.3519-0.06
USD/JPY--

European stocks were little changed as investors weighed the German election result. The ESTX 50 (+0.20%), FTSE 100 (-0.08%), CAC 40 (+0.25%) and the DAX (+0.18%) all posted small moves in early trading. German Chancellor Angela Merkel won 41.5% of the vote in her bid for a third term as leader of Europe’s largest economy. That still leaves her short of a majority, with Merkel needing to find a coalition partner after the Free Democrats failed to win seats in the lower house of parliament. National Grid Plc declined -1.6% after UBS AG cut its rating on the stock. Aberdeen Asset Management Plc climbed +1.9% after forecasting full year profit at the upper end of analyst projections. Randgold Resources Ltd lost -1.3% as an index of mining companies retreated.

US stocks fell amid concern that Federal Reserve stimulus reductions and political debate over government spending pose a threat to economic growth this year. The Dow Jones Industrial Average (-1.19%), S&P 500 (-0.72%) and the NASDAQ Composite (-0.39%) all declined. The S&P Supercomposite Homebuilding Index slipped -2.7%, the biggest loss since for a month. Yields on 10 year Treasury bonds have climbed to 2.73% from a low of 1.63% in May. Microsoft fell -2.5% and GE decreased -1.8%. Caterpillar declined -3.4%, the most in the Dow, after saying total machine sales reported by dealers fell 10% in the three months through August from a year earlier as sales fell in every region except North America. BlackBerry plunged -17% after saying it will cut 4,500 jobs and record an inventory writedown of as much as $960 million after a new set of devices failed to catch on with consumers. AK Steel slid -8% after predicting a loss in the third quarter of 22 cents to 27 cents a share.

Asian stocks declined despite a Chinese manufacturing index jumping more than forecast. The Nikkei 225 (-0.16%), Hang Seng (-0.56%) and the S&P/ASX 200 (-0.46%) all retreated. Delta Electronics Inc surged +6.3% leading technology shares higher. Woori Finance Holdings Co gained +1.6% in Seoul amid speculation sales of its regional bank units will succeed. Newcrest Mining Ltd slumped -8.2% after the price of the precious metal fell for a second day. Perseus Mining Ltd retreated -16%, Zijin Mining Group Co lost -5.9% and Zhaojin Mining Industry tumbled -5.4%. Treasury Wine Estates Ltd lost -6.3% in Sydney after saying CEO David Dearie will leave.