Morning Spread

Morning Spread

Monday 20th January 2014
IndexLevelChg (%)
UK Market6823.95-0.08
Dow Indust Avg16458.56+0.25
S&P 5001838.70-0.39
Nasdaq Composite4197.58-0.50
Nikkei 22515641.68-0.59
Hang Seng22928.95-0.88
IndexLevelChg (%)
Nymex 1m93.62-0.79
Gold Spot1255.22+0.09
GBP/USD1.6449-0.23
GBP/EUR1.2132+0.04
EUR/USD1.3559+0.20
USD/JPY

European stocks were little changed this morning. The ESTX 50 (-0.12%), UK Markets (-0.04%), CAC 40 (+0.08%) and the DAX (-0.29%) all made modest moves in early trading. Deutsche Bank AG retreated -4.2% after reporting a surprise fourth quarter loss. PSA Peugeot Citroen tumbled -8.1% after reporting that full year sales had fallen 4.9% to 2.82 million cars and light commercial vehicles. AB InBev gained +0.7% after agreeing to buy back Oriental Brewery from KKR & Co and Affinity Equity Partners Ltd. It has been the reported that the deal has an enterprise value of $5.8 billion. Air France-KLM Group lost -3.3% after UBS AG reduced its rating. Luxottica Group SpA rose +2.7% after Deutsche Bank advised investors to buy shares in the company.

 

Most US stocks fell amid disappointing corporate earnings. The Dow Jones Industrial Average (+0.25%) gained, while the S&P 500 (-0.39%) and the NASDAQ Composite (-0.50%) both declined. United Parcel Service Inc dropped -0.6% after the company projected fourth quarter earnings that trailed analysts’ estimates. General Electric slipped -2.3% after profit margins at the manufacturing divisions fell short of guidance that the company first laid out in December 2012 and affirmed as recently as last month. Morgan Stanley rose +4.4% after reporting that profit from wealth management climbed to a record. American Express jumped +3.6% to a record after reporting fourth quarter profit doubled and Sanford C.Bernstein & Co raised profit estimates.

 

Asian stocks fell after China’s economic growth slowed in the fourth quarter as gains in factory output and investment spending eased. The Nikkei 225 (-0.59%), Hang Seng (-0.88%) and the S&P/ASX 200 (-0.20%) all posted losses. Chinese banks declined. Industrial & Commercial Bank of China Ltd slipped -2.1%, China Construction Bank Corp lost -1.8% and Agricultural Bank of China Ltd dropped -1.7%. Nintendo Co sank -6.2% in Tokyo after forecasting a surprise full year loss. Ssangyong Motor Co rose +1.4% after controlling shareholder Mahindra & Mahindra Ltd announced plans to invest 1 trillion in the South Korean company.