Morning Spread

Morning Spread

Thursday 20th March 2014
IndexLevelChg (%)
UK Market6513.90-0.90
Dow Indust Avg16222.17-0.70
S&P 5001860.77-0.61
Nasdaq Composite4307.60-0.59
Nikkei 22514224.23-1.65
Hang Seng21182.16-1.79
IndexLevelChg (%)
Nymex 1m100.10-0.27
Gold Spot1327.87-0.13
GBP/USD1.6528+0.70
GBP/EUR1.1987+0.22
EUR/USD1.3788-0.92
USD/JPY

European stocks fell following Janet Yellen’s comments yesterday regarding the end of bond purchasing by the Federal Reserve. The ESTX 50 (-0.56%), UK Markets (-0.71%), CAC 40 (-0.58%) and the DAX (-0.64%) all posted losses in early trading. GlaxoSmithKline Plc lost -1% after saying its experimental lung cancer drug failed to meet its objectives in a clinical study. Munich Re rose +1.2% after announcing a share buyback. Babcock International Group Plc retreated -1.4% as Citigroup Inc lowered its rating on the stock. Next Plc added +1.4% after reporting annual profit that beat analysts’ estimates.

 

US stocks fell after Janet Yellen said the central bank’s stimulus program could end this autumn and benchmark interest rates could rise six months later. The Dow Jones Industrial Average (-0.70%), S&P 500 (-0.61%) and the NASDAQ Composite (-0.59%) all declined. Newmont Mining slid -3% after gold for immediate delivery slumped -1.9% as the Fed predictions for higher interest rates next year curbed demand for the metal as a store of value. All 30 utilities in the S&P 500 retreated as Treasury 10-year yields jumped 10 basis points to 2.77%, competing with dividend yields offered by utilities. Con Ed dropped -3.2% and Duke Energy Corp fell -2.2%. SolarCity Corp dropped -5.7% despite posting fourth quarter net income of $26.7 million. The profit came largely from an acquisition related tax benefit. Walt Disney Co, General Electric Co and Boeing Co all lost at least 1.4% for the biggest losses in the Dow.

 

Asian stocks fell after the Federal Reserve signalled it may raise US interest rates from the middle of next year. The Nikkei 225 (-1.65%), Hang Seng (-1.79%) and the S&P/ASX 200 (-1.15%) all retreated. Newcrest Mining Ltd slumped -7.9% after bullion dropped the most in three months as the Fed’s announcement curbed demand for havens. Zijin Mining Group Co slipped -2.4% in Hong Kong.  China Mobile Ltd dropped -3.6% after posting profit that missed estimates. BYD Co tumbled -14% in Hong Kong after projecting lower than expected first quarter profit. Myer Holdings Ltd fell -5.3% in Sydney after saying second half gross operating profit margin will be flat compared to a year earlier. Tencent Holdings Ltd fell -1.7% after posting fourth quarter profit that missed analyst estimates and proposed a 5-1 share split to boost holdings by individuals.