Morning Spread

Morning Spread

Monday 12th January 2015
IndexLevelChg (%)
UK Market6536.82+0.55
Dow Indust Avg17737.37-0.95
S&P 5002044.81-0.84
Nasdaq Composite4704.07-0.68
Nikkei 22517197.73+0.18
Hang Seng24026.46+0.45
IndexLevelChg (%)
Nymex 1m47.33-2.13
Gold Spot1223.45+0.08
GBP/USD1.5120+0.26
GBP/EUR1.2800-0.05
EUR/USD1.1813-0.24
USD/JPY119.17-0.56

European stocks climbed after a two week retreat. The ESTX 50 (+0.44%), CAC 40 (+0.37%), Dax (+0.47%) and UK markets (+0.05%) all posted gains in early trading. Shire Plc rose +1.4% after agreeing to buy NPS Pharmaceuticals for $5.2 billion. Roche rose +1% after moving to acquire a majority stake in molecular and genomic analysis firm Foundation Medicine Inc for up to $1.18 billion. Sanofi also climbed +1.5% after the European Medicines Agency agreed to review an application by Sanofi and Regeneron for their cholesterol-lowering treatment Alirocumab. Carnival Plc increased +2.6% after Natixis SA recommended buying shares of the company. CRH Plc climbed +2.1% after J&E Davy Holdings Ltd said the company was a top pick among peers and will benefit from US and UK growth.

 

US stocks fell following a two day rally as December’s jobs report gave a mixed view on the economy, with financial shares leading the way lower. The Dow Jones Industrial Average (-0.95%), S&P 500 (-0.84%) and the Nasdaq Composite (-0.68%) all retreated. US nonfarm payrolls rose in December, topping Wall Street expectations, but wages unexpectedly fell. Fourth quarter results from S&P 500 companies pick up next week, including JPMorgan Chase & Co and Wells Fargo. Both were among the biggest drags on Friday, with JPMorgan down -1.7% and Wells Fargo down -1.6%. Bed, Bath and Beyond dropped -6.7% after forecasting fourth quarter earnings at the low end of expectations. Macy’s shares fell after it said it would close 14 stores and cut some jobs.

 

Most Asian stocks fell amid concern Europe’s stimulus plans may not solve the euro region’s economic woes and after an unexpected drop in US wages clouded the outlook for US interest rates. The Nikkei 225 (+0.18%) and the Hang Seng (+0.45%) both advanced, while the S&P/ASX 200 (-0.78%) decreased. Woodside Petroleum Ltd sank -1.9% in Sydney as crude declined. Cheung Kong shares soared as much as 20% before closing 15% higher. Hutchinson Whampoa, which is 50% controlled by Cheung Kong, climbed 13% to cap its steepest daily gain since 1997. Cheung Kong Holdings offered $24 billion in stock to buy out unit Hutchinson Whampoa and will spin off its property assets. Fast Retailing gained +0.8% after reporting strong first quarter profits.