Morning Spread

Morning Spread

Friday 1st August 2014
IndexLevelChg (%)
UK Market6651.74-1.16
Dow Indust Avg16563.30-1.88
S&P 5001930.67-2.00
Nasdaq Composite4369.77-2.09
Nikkei 22515523.11-0.63
Hang Seng24532.43-0.91
IndexLevelChg (%)
Nymex 1m97.63-0.55
Gold Spot1284.44+0.15
GBP/USD1.6834+0.30
GBP/EUR1.2569-0.37
EUR/USD1.3393+0.06
USD/JPY102.94-0.09

European stocks fell after several companies posted worse than forecast earnings. The ESTX 50 (-1.25%), UK markets (-1.02%), CAC 40 (-1.14%) and the Dax (-1.59%) all posted losses in early trading. ArcelorMittal dropped -4.9% after also lowering its full year profit forecast. Iliad SA plummeted -8.9% after offering $15 billion for a controlling stake in T-Mobile US Inc. Vinci SA retreated -8.4% after forecasting a slight drop in 2014 revenue on a comparable basis, down from a previous projection of little change. Axa SA gained +2.2% after saying first half net income surged 22% to €3 billion, boosted by improved earnings from selling life insurance and savings products. IAG SA added +2.3% after saying second quarter operating profit jumped 55% to €380 beating analysts had predictions of €359 million.

US stocks tumbled, erasing the year’s gains in the Dow, amid weaker corporate results. The Dow Jones Industrial Average (-1.88%), S&P 500 (-2.00%) and the Nasdaq Composite (-2.09%) all retreated. Exxon tumbled -4.2% for the largest drop in 3 years after it was reported oil and gas output dropped 5.7% to the equivalent of 3.84 million barrels of crude a day, the lowest since the third quarter of 2009. Murphy Oil dropped -6.9% after lowering its full year production forecast as second quarter earnings trailed analysts’ estimates. Kraft Foods Group Inc lost -6.4% after reporting second quarter sales that missed the average analyst projection. Yum! Brands Inc slid -4.9% after saying it cut ties with meat supplier OSI Group LLC globally after previously saying it would stop using it in China, Australia and the US.

 

Asian stocks slumped amid weaker earnings and credit-market concerns. The Nikkei 225 (-0.63%), Hang Seng (-0.91%) and the S&P/ASX 200 (-1.36%) all declined. Skymark Airlines Inc sank -11% after saying it may go out of business should it have to pay Airbus Group NV a penalty for cancelling the purchase of six A380 superjumbos. Samsung Electronics Co fell -3.8% in Seoul after UBS AG its rating on the stock to “neutral” from “buy”, saying it’s hard to see earnings improving through 2015. China Rongsheng Heavy Industries Group Holdings Ltd fell -3.2% in Hong Kong after saying it expects a significant increase in the net loss for the six months ended June after customers cancelled orders. Yahoo Japan Corp tumbled -6.6% in Tokyo after posting flat operating profit. Sony Corp jumped -4.7% in Tokyo after posting a surprise first quarter profit.