Morning Spread

Morning Spread

Wednesday 14th January 2015
IndexLevelChg (%)
UK Market6480.29-0.95
Dow Indust Avg17613.68-0.15
S&P 5002023.03-0.26
Nasdaq Composite4661.50-0.07
Nikkei 22516795.96-1.71
Hang Seng24112.60-0.43
IndexLevelChg (%)
Nymex 1m45.57-0.70
Gold Spot1228.04-0.22
GBP/USD1.5186-0.16
GBP/EUR1.2925+0.46
EUR/USD1.1750-0.29
USD/JPY117.15+0.70

European stocks fell as commodity prices dropped amid concern over slowing global growth. The ESTX 50 (-0.56%), UK markets (-1.29%), CAC 40 (-0.69%) and the Dax (-0.57%) all posted losses in early trading. The World Bank cut its forecast for global growth this year amid worsening prospects in Europe and China, the world’s biggest consumer of copper. Energy shares and basic resources companies posted the biggest losses among all 19 industry groups as Brent prices declined for a fifth day and copper tumbled. Rio Tinto Group fell -5%, and Antofagasta Plc dropped -11%. Total SA, BP Plc and Royal Dutch Shell Plc all lost more than -2% so far this morning. Jeronimo Martins SGPS SA rallied -7.5% after saying fourth quarter comparable sales grew in Portugal and Poland. Carlsberg A/S rose +1.8% after Barclays Plc upgraded its recommendation on the stock.

 

US stocks declined, led by a drop in materials and energy shares following further weakness in commodity prices. The Dow Jones Industrial Average (-0.15%), S&P 500 (-0.26%) and the Nasdaq Composite (-0.07%) all retreated. KB Home dropped -16.3%, its biggest percentage fall since 1992, after forecasting a drop in gross margins for the first quarter. Freeport McMoran Copper & Gold slid -7.5%, for the biggest decline in the S&P 500, as copper prices dropped below $6,000 per tonne. Goodyear Tire & Rubber stumbled -7.1% after the company estimated full year operating income growth slightly below its forecast of 10% to 15%. Energy shares continued to suffer. Exxon Mobil was down -0.4%.

 

Asian stocks declined as the slump in crude prices spread to copper and the yen rose a fourth day against the dollar. The Nikkei 225 (-1.71%), Hang Seng (-0.43%) and the S&P/ASX 200 (-0.95%) all retreated. BHP Billiton Ltd lost -2.8% in Sydney to close at its lowest since 2009. Toyota Motor Corp, a company that gets 75% of sales abroad, slipped -1.6% as exporters fell. China Oilfield Services Ltd dropped -1.9%. Hyundai Glovis Co plunged -9% in Seoul to extend its decline after the patriarch of South Korea’s Hyundai Motor Group failed to sell a stake in the logistics affiliate. Sumitomo Metal Mining Co plunged -8.1% while Mitsui Mining & Smelting Co lost -5.1% as the price of copper dropped.