Morning Spread

Morning Spread

Friday 16th January 2015
IndexLevelChg (%)
UK Market6474.85-0.37
Dow Indust Avg17320.71-0.61
S&P 5001992.67-0.92
Nasdaq Composite4570.82-1.48
Nikkei 22516864.16-1.43
Hang Seng24103.52-1.02
IndexLevelChg (%)
Nymex 1m47.39+2.46
Gold Spot1258.51-0.33
GBP/USD1.5222-0.46
GBP/EUR1.3089+0.21
EUR/USD1.1630+0.24
USD/JPY116.38+0.28

European stocks declined this morning, led by a fresh slide in Swiss stocks, as investors digested the impact of a leap in the franc after the shock lifting of a central bank currency cap yesterday. The ESTX 50 (-0.08%), Uk markets (-0.15%), CAC 40 (-0.03%) and the Dax (-0.37%) all posted small loses in early trading. Swatch and Julius Baer led a -3.5% in Zurich’s SMI Index as analysts and traders warned of a hit to Swiss exporters and investors’ returns after the franc’s rally against the euro and dollar. AstraZeneca Plc slipped -1.3% after Barclays Plc cut the shares to the equivalent of a sell rating. BP Plc added +2% after a US judge ruled it had dumped less oil into the Gulf of Mexico in 2010 than the government calculated, decreasing the maximum fine it may face. JD Sports Fashion Plc advanced +7.5% after reporting an increase in sales.

 

US stocks fell after several companies reported earnings that disappointed. The Dow Jones Industrial Average (-0.61%), S&P 500 (-0.92%) and the Nasdaq Composite (-1.48%) all declined. Bank of America Corp slipped -5.2% and Citigroup Inc dropped -3.7% as both banks reported a drop in fourth quarter profit as revenue from fixed income trading declined. Best Buy tumbled -14% after warning that price pressure and sluggish demand may hamper results in the coming year. Intel slumped -1.4% in late trading after forecasting first quarter sales that may fall short of analysts’ estimates, sparking concern that the PC industry is headed for a steeper decline. Apple and Hewlett-Packard Co dropped more than -2.7%. BlackBerry Ltd fell -20% after saying it hasn’t engaged in takeover talks with Samsung Electronics. Newmont Mining Corp surged +8.9% for the biggest gain in the S&P 500, after losing -6.8% the previous two days.

 

Asian stocks fell and equity volatility across the region increased as the Swiss central bank’s unexpected scrapping of its currency cap spurred a flight to safety. The Nikkei 225 (-1.43%), Hang Seng (-1.02%) and the S&P/ASX 200 (-0.60%) all retreated. Chugai Pharmaceutical Co, which relies on imports from Switzerland, lost -2.5% in Tokyo. Samsung C&T Corp tumbled -6.3% in Seoul amid concern over slowing overseas orders at Korean builders. Yonyou Software Co surged +10% after the State Council said this week it will set up a fund to support emerging industries. Dongfang Electric Corp led gains for industrial companies as Premier Li Keqiang said China should promote exports of nuclear power equipment. Zijin Mining Corp climbed +3.9% as gold prices rose on demand for safe havens after Switzerland decided to decouple its currency from the euro.