Morning Spread

Morning Spread

Wednesday 11th December 2013
IndexLevelChg (%)
UK Market6518.60-0.07
Dow Indust Avg15973.13-0.33
S&P 5001802.62-0.32
Nasdaq Composite4060.49-0.20
Nikkei 22515515.06-0.62
Hang Seng23338.24-1.71
IndexLevelChg (%)
Nymex 1m98.51unch
Gold Spot1255.04-0.57
GBP/USD1.6416-0.11
GBP/EUR1.1930+0.04
EUR/USD1.3761-0.06
USD/JPY102.52-0.28

US equities pulled back from all time highs on the S&P 500 as investors continued to speculate on the timing of the Fed taper. Some of the economic data they focussed on was US job openings which were at a five year high. This has led to a significant number of economists believing the taper will start at the December meeting next week. In stocks, Campbell Soup gave up yesterday’s gains and declined by 3.73%. News of a new chief executive at General Motors was greeted in unimpressive fashion by investors and the stock closed down 1.2%. Slowing sales growth at Starbucks saw the shares lose 3%, with Dunkin Brands falling just over 1%. The tremendous growth story at Autozone continued with the stock gaining 3% after the auto parts company reported higher than forecast quarterly earnings.

In Asia there was widespread weakness in equities, with Hong Kong dropping 1.7% and Australia falling 0.75%. There were fears that China would downgrade economic growth targets at next week’s policy meeting. Financials were weaker with Industrial & Commercial Bank of China down nearly 3%, Bank of China fell 2.4% and Bank of East Asia was down 2.8%. China Mobile was weak once again falling just over 3%, this time a broker questioned the 4G take up of iPhones. Japanese stocks were generally lower on a firmer Yen, exporters such as Tokyo Electron fell over 2%. The paper sector was in focus after a major broker downgrade, Mitsubishi Paper fell 3% and Nippon Paper lost nearly 4.5%.

Europe is once again quiet this morning with few stand out features. EADS yesterday announced further restructuring of the business with 5,000 job losses confirmed, the shares today are 1.1% higher. Other gainers include Vivendi which is 1.7% up, Metro is up by 1.4% and Thales is up 1.3%. In the UK, Lloyds Banking has been hit by a £28m fine from the FCA regarding pressured incentive schemes, the shares are 0.68% lower. Royal Bank of Scotland is down nearly 2% after the loss of the Finance Director after only 11 weeks. Weak metals prices continue to overhang the miners with Rio Tinto down 1.4% and BHP Billiton down 1.5%.