Morning Spread

Morning Spread

Monday 15th September 2014
IndexLevelChg (%)
UK Market6802.04-0.07
Dow Indust Avg16987.51-0.36
S&P 5001985.54-0.60
Nasdaq Composite4567.60-0.53
Nikkei 22515948.29+0.25
Hang Seng24356.99-0.97
IndexLevelChg (%)
Nymex 1m91.43-0.91
Gold Spot1235.07+0.44
GBP/USD1.6252+0.10
GBP/EUR1.2568+0.15
EUR/USD1.2931-0.25
USD/JPY107.32+0.02

European stocks fell amid concern over growth in China and mergers and acquisitions activity. The ESTX 50 (-0.26%), UK markets (-0.44%), CAC 40 (-0.40%) and the Dax (-0.21%) all posted gains in early trading. TDC dropped -6.1% after saying it will finance the 13.8 billion kroner acquisition of Get AS by selling debt and will cut its dividend payout to maintain its investment grade rating. Nobel Biocare lost -6.1% after agreeing to sell to Danaher for $2.2 billion, paying 17.10 francs share in cash. That’s 5.5% less than the closing price on Friday. Air France-KLM Group slid -2.9% after saying it expects its most disruptive strike since 1998. Europe’s biggest airline expects to cancel 52% of services on the first day of an action due to run through September 22nd. SABMiller added +5.1%, while Heineken rose +1.7% after the UK brewer was rebuffed in an attempt to buy the Dutch company.

 

US stocks fell as investors speculated the Federal Reserve may raise interest rates sooner than estimated after retail sales climbed at the fastest pace in four months. The Dow Jones Industrial Average (-0.36%), S&P 500 (-0.60%) and the Nasdaq Composite (-0.53%) all retreated. Yahoo rose +3.9% after Alibaba received enough demand for its IPO that it plans to stop taking orders. Yahoo is set to get an $8 billion windfall from the IPO. Alibaba plans to set a final price for the shares on September 18th, with trading to begin on the 19th. Conversant soared +30% after Alliance Data agreed to buy the company for $2.3 billion. Caterpillar slumped -0.5% after Bank of America lowered its rating on the shares to “neutral” from “buy”.

 

Asian stocks fell after the weakest growth in Chinese industrial output since 2008 added to evidence the world’s second largest economy is losing momentum. The Hang Seng (-0.75%) and the S&P/ASX 200 (-1.04%) both declined, while the Nikkei 225 (+0.25%) increased. China Petroleum & Chemical Corp fell -5.4% in Hong Kong after agreeing to sell a 107 billion yuan stake in its retail business. KB Financial Group Inc slid -5.1% in Seoul after the Korea Economic Daily reported the board plans to recommend that Chairman Lim Young Rok resigns. Macquarie Group Ltd gained +1% after Sydney after the bank said it will post higher profit this year due to increased fees.