Morning Spread

Morning Spread

Tuesday 15th July 2014
IndexLevelChg (%)
UK Market6749.98+0.06
Dow Indust Avg17055.42+0.66
S&P 5001977.10+0.48
Nasdaq Composite4440.42+0.56
Nikkei 22515395.16+0.64
Hang Seng23459.96+0.49
IndexLevelChg (%)
Nymex 1m100.73-0.18
Gold Spot1310.66+0.27
GBP/USD1.7141-0.39
GBP/EUR1.2600+0.45
EUR/USD1.3604-0.05
USD/JPY0.00985-0.05

European stocks were little changed as investors awaited Federal Reserve Chair Janet Yellen’s semi-annual testimony. The ESTX 50 (-0.32%), CAC 40 (-0.07%) and the Dax (-0.14%) all posted losses in early trading, while the UK markets (+0.20%) gained. Software AG sank -14% after saying the margin on full year operating profit may be as little as 26%. It had previously estimated 26.8%. The company cited project delays. Draegerwerk slid -10% after lowering its 2014 sales growth estimate to 2% – 4% from 3% – 6%. The company also forecast an annual margin on earnings before interest and taxes of 4.5% to 6.5%, citing a strong euro, reduced business from Russia and slower US demand. Hennes & Mauritz AB rose +2% after saying sales increased 12% in June, exceeding the 9.4% gain that analysts had estimated in a SME Direkt survey. Fresnillo Plc led gains in the UK, rising +2.1%. BG Group Plc and EasyJet Plc added more than +1% each.

 

US stocks advanced as Citigroup Inc rallied on better than forecast earnings and internet shares rebounded. The Dow Jones Industrial Average (+0.66%), S&P 500 (+0.48%) and the Nasdaq Composite (+0.56%) all gained. Citigroup jumped +3% on better than estimated trading revenue and lower credit costs helped second quarter profit beat analysts’ forecasts. Apple climbed +1.3% after Barclays raised its recommendation on the technology company top “overweight” from “hold”. Netflix, which tumbled -6.9% last week, rebounded +2.9%. Pandora Media Inc increased +2.7%. LinkedIn Corp, Facebook and Amazon.com Inc each climbed at least +2%. TripAdvisor Inc fell -0.7% after Nomura Holdings Inc cut its rating for the company to “neutral” from “buy”. Perrigo Co rose +8.7%, the most in the S&P 500, after Israel’s Globes said the company was seeking a sale.

 

Asian stocks rose after several companies reported better than forecast earnings, boosting confidence that earnings growth can sustain further gains in shares. The Nikkei 225 (+0.64%), Hang Seng (+0.44%) and the S&P/ASX 200 (+0.02%) all posted gains. ZTE jumped +7.7% in Hong Kong after revising up its first half profit forecast to a range of 1 billion yuan to 1.15 billion yuan, from 800 million yuan to 1 billion yuan announced in April. Cape Lambert Resources Ltd soared +49% after the iron-ore explorer reached a settlement with the Metallurgical Corporation of China over a payment dispute. Zoomlion Heavy Industry Science and Technology Co fell -3.3% in Hong Kong after saying it expects first half profit will plunge by about 60% to 70% from a year earlier.