Morning Spread

Morning Spread

Thursday 19th December 2013
IndexLevelChg (%)
UK Market6547.12+0.85
Dow Indust Avg16167.97+1.84
S&P 5001810.65+1.66
Nasdaq Composite4070.07+1.15
Nikkei 22515859.22+1.74
Hang Seng22888.75-1.10
IndexLevelChg (%)
Nymex 1m97.79-0.01
Gold Spot1205.80-1.04
GBP/USD1.6370+0.08
GBP/EUR1.1967+0.46
EUR/USD1.3680-0.56
USD/JPY

European stocks rallied after the Federal Reserve’s decision to slow the pace on its bond purchases boosted investor confidence in the US economic recovery. The ESTX 50 (+1.57%), UK Markets (+0.94%), CAC 40 (+1.40%) and the DAX (+1.40%) all posted gains this morning. Saab surged +23% after winning a $4.5 billion contract to supply 36 jet fighters to Brazil. Amadeus IT Holding SA rose +1.5% after saying its $500 million purchase of NMTI Holdings Inc will boost profit and sales for 2013. Algeta advanced +1.6% after Bayer AG said it will buy the company for about 17.6 billion kroner, a price that topped a preliminary offer. WPP Plc climbed +2.1% after agreeing to buy a majority stake in ClickMedia, a Vietnam based social media marketing agency for companies including Unilever and Estee Lauder. Prudential added +2.4% as insurers rallied

 

US stocks rose after the Federal Reserve said it will reduce the pace of its monthly bond purchases and expressed confidence in the labour market recovery. The Dow Jones Industrial Average (+1.84%), S&P 500 (+1.66%) and the NASDAQ Composite (+1.15%) rallied. The Fed’s low interest rates have prompted consumers to buy homes or refinance existing mortgages, sparking a recovery in the housing market. Data showed builders broke more ground on more homes in November than at any time in over five years as growing demand helped the industry overcome rising US mortgage rates. Lennar Corp climbed +6.3% after reporting quarterly earnings that topped estimates as it sold more homes and increased profits. CVS Caremark Corp rose +4.3% after boosting its dividend by 22% and approved a share buyback for as much as $6 billion. Gilead Sciences Inc jumped +5% after saying it plans to file a new drug application for a hepatitis C virus treatment in the first quarter after three phase 3 studies. Ford Motor Co declined -6.3% after reducing its pre-tax profit forecast for 2014, due to the cost of bringing new vehicles to market.

 

Asian stocks rose after the Federal Reserve expressed enough confidence in the US labour market to taper asset purchases while promising to hold interest rates close to zero. Shares in China and Hong Kong fell on concern higher funding costs will hurt growth. The Nikkei 225 (+1.74%) and the S&P/ASX 200 (+2.08%) both advanced, while the Hang Seng (-1.10%) declined. Fast Retailing Co climbed +4.5% after the yen touched a five year low to the dollar overnight. Fanuc Corp rose +4.1% to a record in Tokyo. Caltex Australia Ltd surged +13% after saying profit may climb to $301 million. Hang Lung Properties, a developer that invests in mainland malls, fell -4.6%. Fu Shou Yuan International Group Ltd jumped +45% in the funeral company’s Hong Kong trading debut.