Morning Spread

Morning Spread

Thursday 20th February 2014
IndexLevelChg (%)
UK Market6761.07-0.52
Dow Indust Avg16040.56-0.56
S&P 5001828.75-0.65
Nasdaq Composite4237.95-0.82
Nikkei 22514449.18-2.15
Hang Seng22394.08-1.19
IndexLevelChg (%)
Nymex 1m103.26-0.05
Gold Spot1314.24+0.20
GBP/USD1.6643+0.49
GBP/EUR1.2148-0.08
EUR/USD1.3702-0.37
USD/JPY

European stocks dropped after data showed Chinese manufacturing shrank for a second month and Federal Reserve minutes signalled stimulus cuts will continue. The ESTX 50 (-0.92%), UK Markets (-0.42%), CAC 40 (-0.59%) and the DAX (-1.25%) all posted losses in early trading. Randstad Holding NV tumbled -8.4% after reporting quarterly results that missed estimates. TUI AG dropped -4.8% after one of its largest shareholders planned to sell its stake. BAE dropped -9.3% after saying earnings per share will decline between 5% to 10% in 2014 because of pressure on the US to contain its budget. Rexam Plc retreated -5.5% after Jefferies Group LLC said earnings estimates for the company may need to be trimmed to reflect currency fluctuations. Technip SA advanced +6.1% after saying its operating profit margin from subsea operations will be at least 12% in 2014 and increase to 15% to 17% next year.

 

Asian stocks fell after a Chinese manufacturing gauge dropped more than estimated. The Nikkei 225 (-2.15%) and the Hang Seng (-1.19%) both declined, while the S&P/ASX 200 (+0.08%) was up. Japanese exporters fell as the yen strengthened. Honda Motor Co, a company that relies on North America for about half its sales, slid -2.7%. Toyota Motor Corp lost -0.9%. Newcrest Mining Ltd lost -4.2% as futures on gold slid. Naver retreated -8.1% amid concern about WhatsApp’s possible expansion after Facebook’s purchase for as much as $19 billion in cash and stock. Sinopec surged +9.4% after announcing plans to sell as much as 30% of its oil retail unit to private investors. Leighton Holdings Ltd jumped +4.9% after underlying profit topped estimates.

 

US stocks fell with treasuries while the dollar gained as Federal Reserve meeting minutes indicated stimulus cuts would likely continue in measured steps and the IMF warned of risks to global growth. The Dow Jones Industrial Average (-0.56%), S&P 500 (-0.65%) and the NASDAQ Composite (-0.82%) all declined. US Steel Corp sank -7% after the Department of Commerce rejected its claim that South Korea is selling steel tubing in the US below cost. JPMorgan Chase & Co and Bank of America Corp both lost more than 1.6% as financial shares declined. Tesla shares fell nearly -5% during trading hours, but jumped +12% after the bell after posting better than expected fourth quarter results. Facebook shares were down over -2% in extended trading after closing at a record high, after news it buy WhatsApp for $16 billion in cash and stock, plus an additional $3 billion worth of restricted stock units to WhatsApp’s founders.