Morning Spread

Morning Spread

Thursday 13th February 2014
IndexLevelChg (%)
UK Market6632.55-0.64
Dow Indust Avg15963.94-0.19
S&P 5001819.26-0.03
Nasdaq Composite4201.29+0.24
Nikkei 22514534.74-1.79
Hang Seng22165.53-0.54
IndexLevelChg (%)
Nymex 1m99.46-0.91
Gold Spot1288.52-0.21
GBP/USD1.6641-0.39
GBP/EUR1.2175-0.21
EUR/USD1.3670+0.62
USD/JPY

European stocks retreated after several companies reported earnings that missed estimates. The ESTX 50 (-0.36%), CAC 40 (-0.10%), DAX (-0.08%) and the UK markets (-0.37%) all posted losses in early trading. Rio Tinto Group gained +1.7% after saying full year profit jumped 10%, beating estimates. Nestle SA dropped -2% after forecasting growth near the low end of its target in 2014. BNP Paribas slipped -3% after unexpectedly reporting a drop in fourth quarter profit. Lloyds Banking Group Plc declined -1.9% after reporting its fourth consecutive annual loss after setting aside £3.5 billion to compensate clients wrongly sold loan insurance and swaps. Commerzbank AG rose +3.6% after announcing fourth quarter net income that exceeded the average analyst estimate.  

 

US stocks fell as declines in several companies overshadowed optimism about economic growth. The Dow Jones Industrial Average (-0.19%) and the S&P 500 (-0.03%) both declined, while the NASDAQ Composite (+0.24%) gained. Procter & Gamble lost -1.7% after cutting its forecasts for profits and sales growth. Amazon.com slid -3.5% after UBS lowered its rating on the shares to “neutral” from “buy”, citing slowing sales growth in the fourth quarter and a potential risk to revenue from Amazon Prime customers. Dow Chemical dropped -1% as an internal review concluded a breakup plan would reduce the company’s value. TripAdvisor Inc jumped +7.2% as fourth quarter revenue beat analysts’ estimates. Cliffs Natural Resources Inc gained +2.3% after saying it would stop operations at its Wabush mine Newfoundland and Labrador by the end of the first quarter because of unsustainably high costs. Caterpillar Inc jumped +1.3% for the biggest gain in the Dow.

 

 

Asian stocks dropped as investors cautiously awaited US economic data. The Hang Seng (-0.54%), Nikkei 225 (-1.79%) and the S&P/ASX 200 (-0.04%) all retreated. Qantas Airways Ltd jumped +6.3% after the Sydney Morning Herald reported that Australian Treasurer Joe Hockey said the company met pre-conditions for government support. Tokyo Tatemono Co plunged -8.3% after the developer predicted full year operating profit below analyst expectations. Asahi Group Holdings Ltd slid -4.5% in Tokyo after forecasting net income that missed estimates. Prada SpA declined -4.9% in Hong Kong after reporting weakening quarterly sales growth and softening demand in Europe and Asia. Singapore Telecommunications Ltd rose +1.7% after reporting third quarter profit increased 5.4% from a year earlier.