Morning Spread

Morning Spread

Friday 13th December 2013
IndexLevelChg (%)
UK Market6447.25+0.03
Dow Indust Avg15739.43-0.66
S&P 5001775.50-0.38
Nasdaq Composite3998.40-0.14
Nikkei 22515403.11+0.40
Hang Seng23245.96+0.12
IndexLevelChg (%)
Nymex 1m97.31-0.19
Gold Spot1225.66+0.01
GBP/USD1.6338+0.02
GBP/EUR1.1881+0.01
EUR/USD1.3755+0.04
USD/JPY103.49+0.37

US equities closed at a one month low yesterday as more positive economic data increased the chances of a taper announcement next week. There was weakness in the technology sector with IBM losing just over 1%, Oracle was down nearly 2.8% and Microsoft lost 1.05%. Cisco Systems fell for a fourth day in a row with the shares down 1.8% on Emerging Markets slowdown fears. Although, Facebook bucked the trend with a 5% rise on news the stock would be promoted to the S&P 500 Index. There was a profit warning from Lululemon Athletica and the shares fell 12%. Ultra Petroleum was boosted 1.5% as a cold snap in the US increased the natural gas price.

Asia managed to eke out some gains for the first time this week. Although the Australian gold sector was a notable exception, as gold futures fell in the US by the most in 10 weeks. Stocks to be impacted included IAMGold down over 10% and Evolution Mining down 4.3%. Gainers in Japan included JVC Kenwood up nearly 4% on expansion plans in China and Yokohama Rubber gained 2% on the weaker currency impact. Shipping was a positive sector as evidence suggested cargo rates had risen to 3 year highs with China Shipping Development up 4% and China Merchants Energy up 2.4%.

The focus in Europe this morning is RSA Insurance in the UK which has revealed further losses in Ireland and also the resignation of the CEO, the shares are currently down 18.5%. On the positive front, ARM Holdings is up 4.4% on news that Google is looking to design its own server processors using ARM technology rather than Intel. In France, Peugeot is down 12% on news that General Motors is selling its 7% stake after a disappointing partnership which has generated persistent losses. Swedish Match is  down a further 2.2% as the company was included as a stock to avoid in 2014 by JP Morgan.