Morning Spread

Morning Spread

Friday 20th June 2014
IndexLevelChg (%)
UK Market6821.41+0.20
Dow Indust Avg16921.46+0.09
S&P 5001959.48+0.13
Nasdaq Composite4359.33-0.08
Nikkei 22515349.42-0.08
Hang Seng23194.06+0.11
IndexLevelChg (%)
Nymex 1m106.40-0.03
Gold Spot1309.51-0.82
GBP/USD1.7054-0.04
GBP/EUR1.2530+0.11
EUR/USD1.3611-0.08
USD/JPY.0098+0.15

European stocks were mixed before a report that may show euro-area consumer confidence rose to the highest level since 2007. The ESTX 50 (-0.11%) and the CAC 40 (-0.06%) both declined, while the UK Markets (+0.27%) advanced and the DAX (0.00%) was flat. Shire rallied +13% after AbbVie Inc said the company rejected takeover offers of as much as £27.3 billion. FBD Holdings Plc slid -11% after the general insurer cut its profit forecast for 2014. TSB rallied +13% on its first day of trading. Lloyds Banking Group Plc will raise £455 million through the initial public offering of TSB. The bank is selling 175 million TSB shares, or 35% of the company at £2.60 a share. The stake is more than the 25% initially planned because of investor demand. Telenor ASA declined -2.5% after it was reported that the Norwegian government plans to sell shares in the company and Kongsberg Gruppen ASA, valued at a combined 47 billion kroner.

 

US stocks rallied as the Federal Reserve’s policy statement fuelled optimism that the economic recovery will accelerate. The Dow Jones Industrial Average (+0.09%) and the S&P 500 (+0.13%) both advanced, while the Nasdaq Composite (-0.08%) declined. BlackBerry Ltd jumped +9.7% after reporting a narrower loss than analysts had projected. Kroger Co advanced +5.1% as it increased its full year profit forecast. Coach Inc slumped -8.9% after forecasting a prolonged slump in sales at its North American stores. KBR Inc dropped -7.1% after saying it undergo a strategic review of its business. Starbucks Corp rose +2.2% after UBS AG boosted its rating on the company to “buy” from “neutral” and its stock price estimate to $87 from $90, citing that the company has one of the best long-term growth opportunities among consumer multinationals. KBR dropped -7.1% after saying it will undergo a strategic review of its business after reporting losses in a Canadian assembly plant and on two US construction projects.

 

Asian stocks fell as materials and technology companies dropped. The Nikkei 225 (-0.08%) and the S&P/ASX 200 (-0.89%) both declined, while the Hang Seng (+0.13%) was up. Samsung Life lost -3.4% after Samsung Life Public Welfare Foundation sold about five million shares at 100,320 won each. Gold producers advanced as bullion headed for its longest run of weekly advances since March. Zijin Mining Group Co climbed +3.5% in Hong Kong. Newcrest Mining Ltd gained +4% in Sydney. Isuzu Motors Ltd climbed +3.6% in Tokyo after JPMorgan Chase & Co recommended the company’s shares in new coverage, citing pickup in the Japanese and Thai auto markets. HTC Corp climbed +2.3% in Taipei after Chief Executive Officer Peter Chou said he is seeing improvement from the second quarter.