Morning Spread

Morning Spread

Tuesday 12th August 2014
IndexLevelChg (%)
UK Market6634.24+0.02
Dow Indust Avg16569.98+0.10
S&P 5001936.92+0.28
Nasdaq Composite4401.33+0.70
Nikkei 22515161.31+0.20
Hang Seng24689.41+0.18
IndexLevelChg (%)
Nymex 1m97.25-0.85
Gold Spot1310.92+0.18
GBP/USD1.6780+0.02
GBP/EUR1.2578+0.32
EUR/USD1.3340-0.34
USD/JPY102.33-0.15

European shares retreated halting yesterday’s rebound as investors awaited Germany’s ZEW survey, seeking insight on the country’s outlook and the potential impact from the crisis in Ukraine. The ESTX 50 (-0.42%), CAC 40 (-0.60%), Dax (-0.34%) and the UK markets (-0.19%) all posted losses in early trading. Tensions between Ukraine and Russia also kept investors on edge. A Russian convoy of 280 trucks carrying humanitarian aid for Ukraine amid Western warnings against using help as a pretect for an invasion. Ukraine also reported that Russia has amassed 45,000 troops on its border. The impact from tensions between the West and Russia were visible again on the earnings front, with German consumer goods group Henkel warning that earnings growth would slow in the second half of the year in part due to the frictions between Russia and Ukraine. The warning sent Henkel shares down by -2.1%. Hargreaves Lansdown retreated -2.6% after UBS started coverage of the shares with a sell rating. Ladbrokes climbed +2.6% after reporting a 2.6% increase in first half group net revenue.

 

US stocks rose on optimism that tension between Russia and Ukraine will ease and American airstrikes will push back militants in Iraq. The Dow Jones Industrial Average (+0.10%), S&P 500 (+0.28%) and the Nasdaq Composite (+0.70%) all advanced. MannKind Corp advanced +4.9% after Sanofi agreed to pay the company as much as $925 million for rights to the world’s only inhaled insulin. Kinder Morgan Inc rallied +9% after announcing plans to consolidate its energy businesses. Priceline Group Inc rose +2.2% after reporting better than forecast second quarter bookings. Dean Foods Co fell -3.9% after withdrawing its full year forecast amid volatile dairy market. Tesla Motors Inc added +4.5% after Deutsche Bank raised its rating on the company to “buy” from “hold”. Sysco Corp added +3.2% after reporting fiscal fourth quarter revenue that topped the average analyst estimate.

 

Asian stocks rose amid optimism that geopolitical risks are receding. The Nikkei 225 (+0.20%) and the S&P/ASX 200 (+1.34%) both gained, while the Hang Seng (-0.02%) was flat. GungHo Online Entertainment Inc jumped +7.8% after the game developers “Picotto Kingdom” title surged up Apple Inc’s application store in Japan. United Laboratories International Holdings Ltd advanced +5.6% in Hong Kong after forecasting higher first half net income. Tata Motors Ltd surged +6.2% after beating analysts’ estimates with a threefold jump in profit.