Morning Spread

Morning Spread

Wednesday 16th July 2014
IndexLevelChg (%)
UK Market6763.61+0.79
Dow Indust Avg17060.68+0.03
S&P 5001973.28-0.19
Nasdaq Composite4416.39-0.54
Nikkei 22515379.30-0.10
Hang Seng23523.28+0.27
IndexLevelChg (%)
Nymex 1m100.65+0.69
Gold Spot1297.75+0.28
GBP/USD1.7127+0.09
GBP/EUR1.2646+0.09
EUR/USD1.3544-0.18
USD/JPY0.00983+0.05

European stocks advanced as a report showed China’s economy expanded at a better than expected pace, meeting the government’s target for growth this year. The ESTX 50 (+0.61%), UK Markets (+0.76%), CAC 40 (+0.78%) and the Dax (+0.58%) all posted gains in early trading. Gtech SpA gained +3% after agreeing to buy International Game Technology for $4.7 billion. Rio Tinto Group added +1.7% after saying second quarter iron ore production increased 11%. Banco Espirito Santo SA jumped +5.3% as a person familiar with the matter said one of the banks holding companies plans to file for protection from creditors in Luxembourg. Casino Guichard-Perrachon SA rose +0.9% after reporting total sales for the second quarter of €11.93 billion, exceeding analysts’ estimates of €11.85 billion. ASML Holding NV dropped -1.3% after forecasting full year sales of about €5.6 billion, which fell short of the average analyst estimate of €6.13 billion.

 

US stocks fell after Federal Reserve comments that some sectors have excessive valuations overshadowed better than estimated bank earnings. The S&P 500 (-0.19%) and Nasdaq Composite (-0.54%) both declined, while the Dow Jones Industrial Average (+0.03%) was flat. Pandora Media Inc, which trades at more than 160 times projected earnings, fell -1.2%. Facebook Inc and TripAdvisor Inc, which rallied more than 98% in 2013, lost at least -1.1% each. JPMorgan Chase climbed +3.5% and Goldman Sachs rose +1.3%, posting the steepest gains in the Dow Jones, as both firms reported fixed income revenue that topped estimates. Lorillard Inc dropped -10% after Reynolds American Inc reached an agreement to buy its rival for $27.4 billion including. Reynolds lost -6.9%. Intel Corp gained +4% in extended US trading after forecasting third quarter sales that exceeded some analysts’ predictions.

 

Asian stocks were mixed after China reported that the world’s second largest economy grew in line with the government’s target. The Nikkei 225 (-0.10%) declined, while the Hang Seng (+0.20%) and S&P/ASX 200 (+0.14%) both advanced. Huadin Power International Corp surged +10% in Hong Kong after saying it expects first half profit to jump as much as 65%. Mirae Asset Securities sank -15% in Seoul after saying it will buy a stake in Mirae Asset Life Insurance for 320.2 billion won from Mirae Asset Capital. ICICI Bank Ltd gained +3.1%, while State Bank of India advanced +1.8% after the central bank said it will allow lenders to sell long term bonds exempted from reserve requirements to boost funding for boost infrastructure and housing.