Morning Spread

Morning Spread

Thursday 12th June 2014
IndexLevelChg (%)
UK Market6833.74-0.07
Dow Indust Avg16843.88-0.60
S&P 5001943.89-0.35
Nasdaq Composite4331.93-0.14
Nikkei 22514973.53-0.64
Hang Seng23175.02-0.35
IndexLevelChg (%)
Nymex 1m105.37+0.93
Gold Spot1261.93+0.07
GBP/USD1.6827+0.15
GBP/EUR1.2441-0.23
EUR/USD1.3525-0.08
USD/JPY102.08+0.12

US equities were weaker on Tuesday with some declines experienced in the Financial sector. Citigroup fell just over 1%, Bank of America dropped 2% and JPMorgan lost 1%. The sector was overshadowed by possible damages that would need to be paid under a Justice Department investigation into mortgage lending. Equities were also impacted by the World Bank reducing economic growth forecasts for 2014, factors included US weather conditions and the Ukraine situation. Others stocks to register falls included Deere down 1.1%, Toll Brothers down 1.5% and IBM was down 1.1%. Of the few risers, retailer Abercrombie & Fitch was up 1.5% after the company announced a reshuffle in the management team.

Asian stocks followed the US lower with the biggest declines in over a month. The Japanese Yen strengthened ahead of the Central bank meeting tomorrow and this impacted the exporters. Nintendo declined 1.5%, Nippon Electric Glass fell 0.75% and Hitachi lost nearly 1%. Mitsubishi Heavy advanced nearly 1.5% after the company announced they may make a joint bid with Siemens for Alstom. In Australia, the iron ore price was weak once again with Fortescue Metals falling nearly 5% and Atlas Iron dropped 4%. China related stocks were also weak, with consumer stocks lower ahead of key retail sales data. Changan Auto fell 2.3%, China Mengniu Dairy lost 3.2% and Suning Commerce fell nearly 2%.

European stocks are relatively quiet in early trading on Thursday, as investors look to some key US retail sales and jobless figures later in the day. In Switzerland, UBS is down 1.5% after analysts suggested a US fine on the company for FX transactions could be as high as £6 billion. Syngenta is also weaker as the corn price continues to fall on Chinese restrictions, the shares are currently down 1.6%. The Mining sector is weak in the UK, with Rio Tinto down 2.2%, Anglo American is down 3.7% and BHP Billiton is down 1.85%.