Morning Spread

Morning Spread

Monday 20th October 2014
IndexLevelChg (%)
UK Market6274.01-0.57
Dow Indust Avg16380.41+1.63
S&P 5001886.76+1.29
Nasdaq Composite4258.49+0.97
Nikkei 22515111.23+3.98
Hang Seng23070.26+0.20
IndexLevelChg (%)
Nymex 1m83.01+0.31
Gold Spot1241.94+0.29
GBP/USD1.6123-0.19
GBP/EUR1.2633+0.17
EUR/USD1.2763+0.01
USD/JPY107.06-0.17

European stocks fell amid worse than estimated financial results. The ESTX 50 (-0.94%), UK markets (-0.30%), CAC 40 (-0.66%) and the Dax (-0.63%) all posted losses in early trading. SAP SE lost -3.9% after cutting its full year earnings forecast. Royal Phillips NV slid -2.7% after third quarter sales and profit missed analysts’ estimates. Nutreco NV jumped +39% after SHV agreed to buy the company. ARM lost -1.9% as investors awaited the company’s quarterly results. Tesco climbed +2.6% after a report that private equity groups may bid for the company’s Asian businesses. Spirit Pub Co jumped +7.4% after agreeing to recommend a sweetened bid by Greene King Plc to its shareholders. Shell retreated -1.2%.

 

US stocks rallied as earnings beat estimates, consumer confidence reached a seven year high and investors speculated that central banks will add more economic stimulus. The Dow Jones industrial Average (+1.63%), S&P 500 (+1.29%) and the Nasdaq Composite (+0.97%) all finished positively for the weekend. Schlumberger Ltd jumped +3.7% after reporting earnings and saying falling crude prices won’t have significant impact on its business. Morgan Stanley added +2.1% as third quarter profit almost doubled. Urban Outfitters Inc sank -14% after the retailer said a sales slump has persisted as it heads into the holiday shopping season. General Electric Co increased +2.4% after beating analysts’ third quarter profit estimates as cost cutting helped boost margins in the industrial business. Google Inc slipped -2.6% after missing profit and revenue estimates for the third quarter.

 

Asian stocks rose as Japanese shares surged amid optimism the nation’s $1.2 trillion pension fund will boost stock holdings. The Nikkei 225 (+3.98%), Hang Seng (+0.30%) and the S&P/ASX 200 (+0.91%) all advanced. Japanese stocks surged after the Nikkei newspaper reported that the Government Pension Investment Fund will raise its allocation target for domestic shares to about 25% from 12%. Toyota Motor Corp jumped +5.2% in Tokyo as the yen extended losses. NEC Corp increased +6.5% on a report first half operating profit rose. Transfield Services Ltd soared +27% in Sydney after the provider of outsourcing services entered talks with Ferrovial SA after turning down a preliminary offer. China Citic Bank Corp and China Minsheng Banking Corp both gained at least +0.8% after the People’s Bank of China was reported to be planning an injection of about 200 billion yuan into some regional and national banks.