Morning Spread

Morning Spread

Tuesday 19th November 2013
IndexLevelChg (%)
UK Market6687.20-0.54
Dow Indust Avg15976.20+0.09
S&P 5001791.53-0.37
Nasdaq Composite3949.07-0.93
Nikkei 22515126.56-0.25
Hang Seng23657.81-0.01
IndexLevelChg (%)
Nymex 1m92.91-0.13
Gold Spot1275.00-0.03
GBP/USD1.6095+0.04
GBP/EUR1.1910-0.08
EUR/USD1.3514+0.04
USD/JPY

European stocks dropped as investors weighed equity valuations. The ESTX 50 (-0.57%), UK Equity Markets (-0.49%), CAC 40 (-0.65%) and the DAX (-0.32%) all posted losses in early trading. EasyJet rallied +4.3% after proposing to pay 44.1 pence per share, in addition to a regular dividend of 33.5 pence. Royal KPN NV gained +2.4% after Credit Suisse Group AG raised its rating to “outperform” from “neutral”, predicting the stock will gain in value once the sale of KPN’s German business to Telefonica SA is completed. Paddy Power Plc slumped -8.7% after cutting its forecast for full year profit growth. SAP AG retreated -1% after Salesforce.com Inc’s profit forecast missed analysts’ projections. Afren Plc climbed +13% after finding more oil off Nigeria than previously forecast. Aberdeen Asset Management (-2.41%), Vedanta Resources Plc (-1.87%) and Burberry Group Plc (-1.00%) were among the biggest drags on UK equities this morning.

Most US stocks fell after the Dow Jones rose above 16,000 for the first time, spurring concern that equities have risen too far, too fast. The S&P 500 (-0.27%) and the NASDAQ Composite (-0.93%) declined, while the Dow Jones Industrial Average (+0.09%) closed up. Consol Energy Inc fell -4% after being cut to “neutral” from “buy” at Citigroup Inc, citing that outlook for metallurgical coal looks worse than base metals. Peabody Energy Corp lost -3.7%. Microsoft declined -1.7% after Bank of America cut the shares to “underperform” from “neutral”, citing the risk that the board will select a CEO that disappoints investors. Tesla Motors Inc fell -10% after it was reported that safety officials in California are investigating an industrial accident at the company’s Model S plant that injured three workers. Nvidia Corp dropped -2.4% after the shares were cut to “underweight” from “equal-weight” at Morgan Stanley. Tyson climbed +2.3% after saying fiscal fourth quarter sales rose +7% beating the average of 12 analysts’ estimates.

Asian stocks were little changed after the regions benchmark index completed its steepest three day rally since July on optimism China’s economic reforms will boost growth. The Nikkei 225 (-0.25%), Hang Seng (-0.01%) and the S&P/ASX 200 (-0.59%) all registered small declines. China Life Insurance Co rose +4.8% in Hong Kong after Citigroup Inc named the company as one of the beneficiaries of Communist Party measures. Energy companies climbed the most in the Hang Seng after Erwin Sanft, the head of China and Hong Kong equity research at Standard Chartered Plc said oil and energy companies will benefit most from reforms. China Petroleum & Chemical Corp rose +1.2%. Kunlun Energy Co increased +2.1% and PetroChina Co advanced +2.5%. Samsung Electronics Co gained +1% as foreigners bought a net 246 billion won of stocks in South Korea’s Kopsi index. Honda Motor Co, which gets about 83% of its revenue outside of Japan, lost -1.1% as the yen gained for a second day. Sharp Corp, a company that gets about 60% of sales outside Japan, slipped -1.8%. Bridgestone Corp dropped -0.7%.