Morning Spread

Morning Spread

Thursday 10th July 2014
IndexLevelChg (%)
UK Market6663.67-0.81
Dow Indust Avg16985.61+0.47
S&P 5001972.83+0.46
Nasdaq Composite4419.03+0.63
Nikkei 22515216.47-0.56
Hang Seng23238.09+0.27
IndexLevelChg (%)
Nymex 1m101.85-0.43
Gold Spot1337.48+0.73
GBP/USD1.7117+0.06
GBP/EUR1.2555-0.11
EUR/USD1.3633+0.05
USD/JPY0.00986-0.30

European stocks fell as Chinese exports missed estimates and some Federal Reserve officials expressed concern over complacency about risks in the economy. The ESTX 50 (-0.64%), UK markets (-0.36%), CAC 40 (-0.44%) and the Dax (-0.41%) all posted losses in early trading. Fugro sank -17% after forecasting a drop in profit margin and writing off as much as €350 million. DNB ASA lost -3.6% after posting second quarter net income that missed analysts’ estimates. Gerresheimer AG and Tryg A/S climbed more than +2% each after posting quarterly earnings that exceeded estimates. Skanska AB lost -2.5%after saying it will scale down operations in Latin America after booking 500 million kronor in project writedowns and restructuring costs.

 

US stocks rebounded as optimism over corporate earnings and jobs growth overshadowed central bank concern that investors may be growing complacent about the economic outlook. The Dow Jones Industrial Average (+0.47%), S&P 500 (+0.46%) and the Nasdaq Composite (+0.63%) all advanced. Alcoa Inc jumped +5.7% after kicking off the earnings season with better than forecast results. American Airlines Group Inc rallied +4.3% after raising its margin forecast. Reynolds American Inc rose +2.2% after the Daily Mail speculated British American Tobacco may purchase the rest of the company. BAT holds about 42% of Reynolds. Bob Evans Farms Inc slid -4.4% as quarterly revenue missed estimates. The Container Store Group plunged -8.4% after reporting that quarterly earnings missed analysts’ estimates.

 

Asian stocks outside Japan rose as investors speculated that increasing Chinese exports and imports signalled growth in the Chinese economy. The Nikkei 225 (-0.56%) declined, while the Hang Seng (+0.27%) and the S&P/ASX 200 (+0.22%) both gained. Syrah Resources Ltd soared +28% following a report Glencore Plc has made a takeover approach for the Melbourne based company. Benesse Holdings Inc slumped -4.9% after saying as many as 20 million customer records may have been leaked. BYD Co rose +3.8% in Hong Kong after China said it will exempt new energy vehicles from sales taxes to curb pollution. Korea Electric Power Corp climbed +4.8%