Morning Spread

Morning Spread

Wednesday 17th December 2014
IndexLevelChg (%)
UK Market6291.31-0.64
Dow Indust Avg17068.87-0.65
S&P 5001972.74-0.85
Nasdaq Composite4547.83-1.24
Nikkei 22516819.73+0.38
Hang Seng22585.84-0.37
IndexLevelChg (%)
Nymex 1m55.05-1.57
Gold Spot1195.55-0.11
GBP/USD1.5720+0.22
GBP/EUR1.2616+0.17
EUR/USD1.2460-0.39
USD/JPY117.16+0.11

European stocks declined as banks and health care companies suffered. The ESTX 50 (-1.20%), UK markets (-0.82%), CAC 40 (-0.91%) and the Dax (-1.05%) all posted losses in early trading. Royal Philips NV slid -3.9% after agreeing to buy Volcano Corp for $1 billion to boost its growth in image guided treatments of the heart and blood vessels. UCB SA dropped -2.9% after the sale of its US generic drug business to two private equity firms for $1.53 billion fell apart. Acciona SA slipped -1.4% as Expansion reported that the company’s contract to build a tunnel in Melbourne could be suspended by the new state government. Dixons Carphone Plc climbed +3.1% after first half sales increased by 5%. International Consolidated Airlines Group SA, Mondi Plc and EasyJet Plc led the declines in the UK, all falling at least -2.2% this morning.

 

US stocks retreated as companies from Microsoft Corp to Google Inc led a selloff in technology shares that overshadowed gains in oil producers. The Dow Jones Industrial Average (-0.65%), S&P 500 (-0.85%) and the Nasdaq Composite (-1.24%) all declined. Amazon.com Inc and Google Inc each declined -3.6% to lead losses in the Nasdaq. JPMorgan Chase & Co cut its 12 month price target on Google to $600 from $670, while maintaining an “overweight” rating. Netflix Inc and Yahoo! Inc slumped more than -2%. Apple lost -1.4%. Whirlpool declined -4.9% after revising down its 2014 earnings projection, citing unfavourable currencies and expenses related to two acquisitions. Range Resources Corp, Transocean Ltd and Diamond Offshore Drilling Inc all advanced more than +3.2% after several analysts suggested that the energy sector had been hit so hard that it’s not going to take much for those stocks to turn around. Boeing Co added +1.8% after boosting a stock buyback plan to $12 billion and raising its quarterly dividend by 25%.

 

Asian stocks were mixed before a Federal Reserve policy decision as consumer shares led the decline. The Nikkei 225 (+0.38%) and the S&P/ASX 200 (+0.18%) both increased, while the Hang Seng (-0.37%) decreased. Geely Automobile sank -17% in Hong Kong as the company said it expects full year profit to fall about 50% because of the slumping Russian currency and declining sales. Japan Tobacco sank -7.4% after Goldman Sachs cut its rating on the stock to “neutral” from “buy” and a report said the government is considering scrapping a tax break on six of the company’s cigarette brands. Unitika Ltd slumped -5% after saying it improperly obtained smoke insulation certification for a product. Tokyo Electron Ltd rose +2.4% after a report China is less likely to block its deal with Applied Materials. Inpex rose +2.8% and Japan Drilling Co added +1.5%