Morning Spread

Morning Spread

Tuesday 12th April 2016
IndexLevelChg (%)
UK Market6178.31-0.35
Dow Indust Avg17556.41-0.12
S&P 5002041.99-0.27
Nasdaq Composite4833.40-0.36
Nikkei 22515928.79+1.13
Hang Seng20504.44+0.31
IndexLevelChg (%)
Nymex 1m40.76-0.30
Gold Spot1260.95+0.24
GBP/USD1.4273-0.21
GBP/EUR1.2458-0.16
EUR/USD1.1457+0.38
USD/JPY108.15-0.13

European stocks retreated this morning as investor confidence in the region’s economic prospects remained uncertain heading into the earnings season. The ESTX 50 (-0.44%), CAC 40 (-0.72%), Dax (-0.24%) and the Dax (-0.24%) all posted losses in early trading. LVMH fell -3.3% after posting worse than forecast quarterly sales. Burberry Group Plc lost -1.9%. Ericsson and Nokia Oyj declined at least -1.2% after US peer Juniper Networks Inc’s first quarter profit and revenue missed forecasts. Tryg A/S climbed -1.3% after reporting first quarter profit that beat estimates. Rockets Internet SE rose +2.7% after selling its stake in Lazada Group SA to Alibaba Group Holding Ltd.

US stocks declined, with gains in materials and banks countered by declines in consumer staples shares, as investors girded for the start of an earnings season expected to be gloomy. The Dow Jones Industrial Average (-0.12%), S&P 500 (-0.27%) and the Nasdaq Composite (-0.36%) all decreased. Investors were looking for cues from the first quarter earnings season, which began with Alcoa’s report after yesterday’s close. Alcoa fell more than -2% in extended trading after reporting a lower quarterly profit, with results hurt by low alumina and aluminium prices. Norfolk Southern shares fell -2.7% after Canadian Pacific said it was giving up on its $28 billion bid to buy the company. National Oilwell Varco dropped -6.1% after saying it would cut its quarterly dividend.

Asian stocks rose, led by Japanese equities as the yen retreated after a seven day rally amid the start of the US earnings season. The Nikkei 225 (+1.13%), Hang Seng (+0.30%) and the S&P/ASX 200 (+0.89%) all advanced. Mitsubishi UFJ Financial Group Inc rose +5.9% and Mitsui Financial Group Inc advanced +5.2% after the Japanese central bank reduced the portion of bank funds subject to negative interest rates. Japanese exporters Toyota Motor Corp added +3.9% and Hitachi Ltd jumped +4.4% as the yen weakened. Nomura Holdings Inc added +7.4% after a Bloomberg report said Japan’s largest brokerage plans to shut down its European equity operations after years of failing to become profitable overseas.