Morning Spread

Morning Spread

Tuesday 16th September 2014
IndexLevelChg (%)
UK Market6772.92-0.46
Dow Indust Avg17031.14+0.26
S&P 5001984.13-0.07
Nasdaq Composite4518.90-1.07
Nikkei 22515911.53-0.23
Hang Seng24136.01-0.91
IndexLevelChg (%)
Nymex 1m92.83-0.10
Gold Spot1238.93+0.46
GBP/USD1.6183+0.24
GBP/EUR1.2501-0.34
EUR/USD1.2945+0.10
USD/JPY107.12+0.08

European stocks retreated as investors awaited the outcome of the latest Federal Reserve meeting. The ESTX 50 (-0.61%), UK markets (-0.52%), CAC 40 (-0.70%) and the Dax (-0.52%) all posted losses in early trading. Orange SA slid -1.1% and Jazztel Plc added +5.9% after the French company offered to buy the Spanish broadband provider for about €3.4 billion. Publicis Group SA gained +0.7% after saying it will appoint a new management team. Asos Plc tumbled -11% after saying it lost sales of between £25 million to £30 million in the quarter through August because of a fire at a distribution centre. Pearson Plc climbed +2.3% after Morgan Stanley raised its recommendation on the company to “buy”. ARM Holdings Plc lost -2.4% as technology shares declined.

 

Most US stocks fell as investors assessed an unexpected drop in production before a rate decision in two days. The S&P 500 (-0.07%) and the Nasdaq Composite (-1.07%) both declined, while the Dow Jones Industrial Average (+0.26%) increased. Selling was heaviest in the stocks with the highest valuations. Tesla Motors Inc sank -9.1%. Tesla trades at 81 times analyst estimates for adjusted earnings in 2015, almost five times the price earnings ratio of the Nasdaq. Facebook Inc plunged -3.7% for the biggest loss in the S&P 500. TripAdvisor Inc, Micron Technology Inc and Netflix Inc dropped at least -3.9%. Among the most active stocks on the NYSE were Bank of America, down -0.30%, Nokia Corp ADR +2.27% and Petrobras +0.98%.

 

Asian stocks fell ahead of a Federal Reserve policy meeting. The Nikkei 225 (-0.23%), Hang Seng (-0.91%) and the S&P/ASX 200 (-0.51%) all retreated. PAX Global Technology Ltd plummeted -12% in Hong Kong after its controlling shareholder sold a stake in the company. Ramsay Health Care Ltd dropped -3.8% in Sydney as Paul Ramsay Holdings Pty sold shares in the company. SoftBank Corp, an investor in Alibaba Group Holding Ltd, gained +3.5% in Tokyo after China’s largest e-commerce company raised the amount it’s seeking in its IPO. Fuso Chemical Co soared +19% after saying it will conduct a five-for-one stock split on October 1st. Biotechnology shares jumped after Japanese researchers transplanted retina derived from induced pluripotent stem cells. Shin Nippon Biomedical Laboratories Ltd jumped +17% and Cellseed Inc advanced +5.7%.