Morning Spread

Morning Spread

Friday 17th October 2014
IndexLevelChg (%)
UK Market6268.72+1.18
Dow Indust Avg16117.24-0.15
S&P 5001862.76+0.01
Nasdaq Composite4217.39+0.05
Nikkei 22514532.51-1.40
Hang Seng23023.21+0.53
IndexLevelChg (%)
Nymex 1m83.10+0.48
Gold Spot1238.74-0.01
GBP/USD1.6110-0.25
GBP/EUR1.2562+0.26
EUR/USD1.2823-0.01
USD/JPY106.49-0.39

European stocks rallied as an ailing euro-area economy increase pressure on policy makers to provide more stimulus measures. The ESTX 50 (+1.69%), UK markets (+1.04%), CAC 40 (+1.67%) and the Dax (+1.64%) all posted gains in early trading. Accor SA gained +1.3% after reporting sales growth that beat analyst forecasts. Rolls-Royce Holdings Plc slid -8.7% after cutting its sales outlook for the full year. Royal Dutch Shell Plc, Tullow Oil Plc and Petrofac Ltd all advanced at least +3% as crude gained. Travis Perkins Plc fell -1.2% after saying market conditions remain challenging for its plumbing and heating businesses. PSA Peugeot Citroen added +5.1% and Volkswagen AG increased +2.7% after data from the European Automobiles Manufacturers’ Association showed car sales growth revived last month, after hitting a 2014 low in August.

 

US stocks recovered from early losses as the St Louis Federal Reserve Bank President said policy makers should consider delaying the end of bond purchases to halt the decline in inflation expectations. The Dow Jones Industrial Average (-0.15%), S&P 500 (+0.01%) and the Nasdaq Composite (+0.05%) all finished the session fairly flat. Chesapeake Energy Corp surged +17% after it was reported that the company plans to sell natural gas and oil shale fields to Southwestern Energy Co for $5.4 billion. Southwestern slumped -10%, while QEP Resources Inc, a natural gas and oil exploration company, jumped +6.8%. Baker Hughes Inc sank -3% after saying oil prices below $75 a barrel for a few months may lead to reduced spending on energy exploration and production. Netflix tumbled -19% after saying a price increase had slowed subscriber growth. EBay Inc sank -4.7% after its sales forecast missed estimates. Goldman Sachs fell -2.6% after posting a bigger drop in trading revenue than competitors including JPMorgan Chase & Co.

 

Asian stocks rose after Federal Reserve officials comments that the central bank should consider delaying the end of the bond purchases and US data eased concern over the global economy. The Hang Seng (+0.63%) and the S&P/ASX 200 (+0.32%) both increased, while the Nikkei 225 (-1.40%) retreated. Cnooc Ltd added +1.5% after crude prices rebounded. Sino Land Co, a property company that gets more than half its revenue in Hong Kong, advanced +1%. Sands China Ltd, which had fallen 33% this year, jumped +4.2% to lead gains in the Hang Seng. Japanese banks and exporters suffered. Mitsubishi UFJ Financial dropped -1.6% and Sumitomo Mitsui Financial Group Inc declined -2.5%. Toyota sank -2.5% and Nissan Motor Co slipped -3.7%. Inpex gained +4.8% as brent crude climbed. Japan Material Co surged +7.9% after boosting its earnings forecast.