Morning Spread

Morning Spread

Tuesday 21st April 2015
IndexLevelChg (%)
UK Market7082.78+0.43
Dow Indust Avg18034.93+1.17
S&P 5002100.40+0.92
Nasdaq Composite4994.60+1.27
Nikkei 22519909.09+1.40
Hang Seng27862.92+2.83
IndexLevelChg (%)
Nymex 1m56.02-0.64
Gold Spot1195.92+0.01
GBP/USD1.4876+0.21
GBP/EUR1.3937+0.49
EUR/USD1.0674-0.70
USD/JPY119.73-0.29

European stocks advanced after several companies reported better than expected results. The ESTX 50 (+0.93%), UK markets (+0.59%), CAC 40 (+0.90%) and the Dax (+1.33%) all posted gains in early trading. SAP climbed +2% after reporting first quarter sales that topped estimates as a weaker euro boosted revenue. Actelion added +5.5% as it increased its full year forecast after first quarter profit beat estimates. L’Oreal SA gained +1.3% after posting a 14% increase in first quarter sales as a weaker euro helped compensate for sluggish growth in western Europe. Publicis Groupe SA rose +4.9% after reporting first quarter sales soared a better than expected 32% as the weaker euro and acquisition of Sapient Corp added to earnings. Rio Tinto Group lost -1.6% after reporting first quarter iron ore production expanded a less than estimated 12%.

 

US stocks rose after China moved to stimulate its slowing economy while investors bought technology stocks on cautious optimism on upcoming earnings reports. The Dow Jones Industrial Average (+1.17%), S&P 500 (+0.92%) and the Nasdaq Composite (+1.27%) all advanced. The outlook for technology companies’ profits has brightened modestly following results from Intel and Netflix last week and Check Point Software’s report on Monday, which beat expectations. Check Point Software jumped +5%. Apple Inc helped lead the US market higher, rising +2.3%. While IBM jumped +3.4%. After the bell, IBM reported its 12th straight drop in quarterly revenue as it shed unprofitable businesses to focus on cloud-computing. The earnings exceeded expectations, and IBM’s shares lost -0.2% in extended trading. Hasbro jumped +12.5% after reporting a surprise increase in revenue. Royal Caribbean lost -8% after it reported a fall in revenue, saying the strong dollar hurt spending on its cruise ships.

 

Asian stocks advanced following China’s latest move to prop up its economy and yen’s first drop in a week helped Japanese exporters. The Nikkei 225 (+1.40%), Hang Seng (+2.37%) and the S&P/ASX 200 (+0.67%) all gained. Toyota Motor Corp and Nissan Motor Co Ltd, gained +2.2% and 2.4%, respectively, while Panasonic Corp gained +3.7%. Canon Inc slid -0.9% in Tokyo after the Nikkei newspaper reported that the company will post a drop in profit in the three months through March. China Merchants Bank Co and Bank of China Ltd climbed more than +4% in Hong Kong. China Mobile advanced +7.9% after adding more subscribers to its fourth generation service. Kweichow Moutai Co jumped +10% after reporting a jump in profit. Bucking the trend, CSR Corp and China CNR both slumped on Tuesday on profit-taking after surging recently on plans to merge. Both companies fell by their maximum 10% limit in Shanghai and over 13% in Hong Kong.