Morning Spread

Morning Spread

Thursday 13th August 2015
IndexLevelChg (%)
UK Market6602.13+0.47
Dow Indust Avg17402.51-0.01
S&P 5002086.05+0.10
Nasdaq Composite5044.39+0.15
Nikkei 22520595.55+0.99
Hang Seng24018.80+0.43
IndexLevelChg (%)
Nymex 1m43.55+0.58
Gold Spot1119.13-0.47
GBP/USD1.5621+0.16
GBP/EUR1.4050+0.35
EUR/USD1.1119-0.50
USD/JPY124.54-0.46

European stocks rose as improved corporate earnings helped stocks rebound from their biggest slump since October. The ESTX 50 (+1.56%), CAC 40 (+1.72%), Dax (+1.42%) UK markets (+0.72%) all posted gains in early trading. Nestle SA rose +2.2% after reporting first half sales growth that exceeded analyst estimates. Peugeot SA and BMW AG climbed more than +2.4% after a gauge tracking car manufacturers plunged the most since 2011 in the past two days. A.P.Moeller-Maersk A/S jumped +5.8% after its container line reported a bigger than projected profit. ThyssenKrupp AG climbed +4% as quarterly earnings beat estimates after cutting costs. TUI AG rallied +7.7% after saying profit growth will be at the upper end of its forecast. Aegon NV dropped -6.4% after saying second quarter profitability fell.

 

US stocks rebounded yesterday to end finish the session little changed as energy shares and Apple bounced back, offsetting concerns about a slowdown in China. The Dow Jones Industrial Average (-0.01%), S&P 500 (+0.10%) and the Nasdaq Composite (+0.15) all ended fairly flat. Apple, for which China is a key market, also reversed course after falling more than 3% earlier to its lowest since January. It ended up +1.5% and was the biggest positive factor across all three major indexes. Alibaba dropped -5.1% after hitting an all-time low of $71.03 after revenue growth slowed at China’s biggest e-commerce company. Yahoo, which has a 15% stake in Alibaba, fell -4.3%. Macy’s fell -5.1% after it also reported weak quarterly sales. After the bell, shares of Cisco Systems rose +3.7% after results beat estimates as demand recovered for its switching equipment and routers.

 

Asian shares rose amid reassurances from China’s central bank that there was no basis for further yuan depreciation after it devalued the currency earlier this week. The Nikkei 225 (+0.99%), Hang Seng (+0.46%) and the S&P/ASX 200 (+0.11%) all advanced. Japanese companies that rely on China for sales reversed two days of losses, with Murata Manufacturing Co gaining +1.1%. Hirose Electric Co jumped +2.4% after a broker upgraded its rating on the shares. SoftBank Group Corp slumped -2.6% after one of its biggest investments, Alibaba Group Holdings Ltd, tumbled in US trading as a weaker Chinese economy weighed on earnings. Pacific Metals Co dropped -1.6% after posting a quarterly loss.