Morning Spread

Morning Spread

Thursday 21st August 2014
IndexLevelChg (%)
UK Market6772.19+0.25
Dow Indust Avg16979.13+0.35
S&P 5001986.51+0.25
Nasdaq Composite4526.48-0.02
Nikkei 22515586.20+0.85
Hang Seng24994.10-0.66
IndexLevelChg (%)
Nymex 1m92.99-0.49
Gold Spot1281.45-0.81
GBP/USD1.6584+0.26
GBP/EUR1.2503-0.06
EUR/USD1.3264-0.20
USD/JPY103.89-0.51

European stocks advanced as reports the Federal Reserve will continue to support the US economy offset a slowdown in Chinese manufacturing growth. The ESTX 50 (+0.31%), CAC 40 (+0.23%), Dax (+0.21%) and UK markets (+0.16%) all posted gains in early trading. Raiffeisen Bank International AG rallied +5.3% after posting second quarter net income that exceeded analysts’ projections. Polymetal International Plc gained +1% after Bank of America Corp advised investors to buy the stock. Nobel Biocare Holding AG rose +2.1% after raising its 2014 profit margin forecast. Air Berlin Plc climbed +8.5% after posting a quarterly profit and saying it will reduce its capacity. Royal Ahold NV fell -2.7% after reporting second quarter earnings that missed analysts’ estimates. CRH Plc rose after Sanford C Bernstein & Co raised its rating on the stock. Fresnillo Plc and Randgold Resources Ltd each lost more the -1.2% as commodity producers retreated.

US stocks rose after Federal Reserve meeting minutes indicated continued stimulus amid uneven gains in the labour market. The Dow Jones Industrial Average (+0.35%) and the S&P 500 (+0.25%) both increased, while the Nasdaq Composite (-0.02%) was flat. International Rectifier Corp soared +47% after Infineon Technologies AG agreed to buy the company for about $3 billion in cash, adding to its power management technology business. Staples Inc declined -2.6% for the biggest loss in the S&P 500 after announcing it will shut about 140 locations this year, part of a store closing plan announced earlier, as the retailer responds to online competition. J.M.Smucker Co fell -1% after reporting earnings that missed analysts’ estimates, citing slow sales of consumer foods and coffee. Hertz Global Holdings Inc slumped -3.9% after saying its full year results will miss the low end of its forecast. Industrials had the biggest gains. Jacobs Engineering Group Inc jumped +3.1%, ADT Corp increased +2.7% and Southwest Airlines Co advanced +2.7%.

Asian stocks outside Japan fell after a private gauge of Chinese manufacturing dropped more than economists forecast. The S&P/ASX 200 (+0.08%) and the Nikkei 225 (+0.85%) both advanced, while the Hang Seng (-0.86%) retreated. Tatts retreated -5.8% after profit and the final dividend missed forecasts, dragging the shares down by the most since February 2012. Dainippon Screen gained +3.4% after Mitsubishi UFJ Morgan Stanley raised its recommendation on the stock to “outperform” from “neutral”. AMP Ltd climbed +4.2% after saying it is focused on reducing costs. ZTE Corp rose +2.8% in Hong Kong after reporting increased first half profit. Honda Motor Co, a company that gets nearly half its revenue in North America, climbed +2.3%. Mazda Motor Corp increased +2.8% on a report the company is on track to become debt free in the year ending March 2017 as cash flow improves.