Morning Spread

Morning Spread

Friday 13th June 2014
IndexLevelChg (%)
UK Market6810.03-0.48
Dow Indust Avg16734.19-0.65
S&P 5001930.11-0.71
Nasdaq Composite4297.63-0.79
Nikkei 22515097.84+0.83
Hang Seng23319.17+0.62
IndexLevelChg (%)
Nymex 1m107.15+0.58
Gold Spot1274.09+0.05
GBP/USD1.6981-1.00
GBP/EUR1.2513+0.81
EUR/USD1.3571+0.18
USD/JPY

European stocks declined as investors watched developments in Iraq and awaited a report on US consumer confidence. The ESTX 50 (-0.31%), UK Markets (-0.38%), CAC 40 (-0.34%) and the Dax (-0.49%) all posted losses in early trading. Barratt Developments slid -4.4%, Land Securities Group Plc dropped -3.2% and British Land Co fell -3% after George Osborne promised the Bank of England new powers over mortgage lending. Separately, Bank of England Governor Mark Carney said rising UK mortgage debt may threaten Britain’s recovery as he signalled interest rates might start to rise earlier than anticipated. Gulf Keystone Petroleum Ltd increased +4.4% after saying production at its Shaikan operation in the Kurdistan region of Iraq is stable and plans to increase output capacity are on track. R.Stahl climbed +3.7% after Weidmueller raised its offer for the company to €50 per share from a bid of €47.5 per share in April. Geberit AG gained +2.7% after Goldman Sachs raised its rating on the company to “buy” from “sell”.

 

US stocks retreated as industrial and consumer discretionary shares plunged after escalating violence in Iraq sent oil to an eight month high while economic data missed estimates. The Dow Jones Industrial Average (-0.65%), S&P 500 (-0.71%) and the Nasdaq Composite (-0.79%) all retreated. Energy producers in the S&P 500 gained. Noble, a contract drilling company, rallied +3.1% and Diamond Offshore jumped +3.3%. Chevron Corp climbed +0.7%, the most in the Dow. Lululemon Athletica Inc declined -16% after forecasting full year earnings that fell short of analysts’ estimates. Keurig Green Mountain Inc advanced +4.1% for the biggest gain in the S&P 500 after saying it is committed to returning cash to investors. Intel jumped +3.8% in extended trading after raising its forecast for second quarter revenue as demand for corporate personal computers picks up. Delta sank -5.4%, United Continental lost -5.9% and Southwest Airlines Co dropped -4.5% as West Texas Intermediate crude jumped 2%.

 

Asian stocks gained as oil explorers advanced, while airlines retreated as oil surged amid escalating violence in Iraq. The Nikkei 225 (+0.83%) and the Hang Seng (+0.59%) both gained, while the S&P/ASX 200 (-0.44%) declined. Inpex climbed +4.5% in Tokyo. Cnooc Ltd rose +2.1% in Hong Kong. Woodside Petroleum Ltd gained +1.9%. Advantest increased +3.6% in Tokyo after the Nikkei reported that chip testing equipment orders in the three months to June may reach 50 billion yen. The company originally projected orders for the quarter at between 40 billion yen and 45 billion yen. Airlines declined as the price of oil rose. Korean Air slipped -1.6%. Japan Airlines Co slipped -2.9%. Tiger Airways Holdings Ltd fell -1% in Singapore.