Morning Spread

Morning Spread

Tuesday 21st October 2014
IndexLevelChg (%)
UK Market6298.28+0.50
Dow Indust Avg16399.67+0.12
S&P 5001904.01+0.91
Nasdaq Composite4316.07+1.35
Nikkei 22514804.28-2.03
Hang Seng23088.58+0.08
IndexLevelChg (%)
Nymex 1m83.17+0.56
Gold Spot1251.35+0.35
GBP/USD1.6165-0.13
GBP/EUR1.2618+0.01
EUR/USD1.2810+0.12
USD/JPY106.65+0.15

European stocks rose as investors weighed earnings reports from several companies. The ESTX 50 (+0.45%), UK markets (+0.45%), CAC 40 (+0.65%) and the Dax (+0.54%) all posted gains in early trading. Actelion climbed +4.8% after saying core earnings will increase in a low twenties percentage range at constant exchanges, compared with a previous forecast for growth in the mid-teen percentage range. Swedbank gained +2.9% after reporting third quarter net income of 4.56 billion kronor, topping the 4.23 billion kronor estimated by analysts. Reckitt Benckiser lost -2.3% after saying full year sales growth will be at the lower end of its forecast of between 4% and 5%, as growth lags behind in Asia and Latin America. Asos Plc surged +17% after annual profit exceeded estimates. Ophir Energy Plc climbed +3.7% after reporting good gas flow rates from a well in Equatorial Guinea. Shire added +2.4%.  

 

US stocks continued to rally as optimism over corporate earnings triggered a rebound from last week’s selloff. The Dow Jones Industrial Average (+0.12%), S&P 500 (+0.91%) and the Nasdaq Composite (+1.35%) all advanced. SunEdison Inc jumped +7.7% and Terraform Power Inc surged +11% after Greenlight Capital Inc recommended investors to buy the two companies. Sears Holdings Corp jumped +23% after announcing plans to raise capital by offering shareholders $625 million of notes plus warrants to buy additional stock, an attempt to give the company time to return to profitability. Tesoro Corp rallied +8.4%, for the biggest gain in the S&P 500, after a partnership it controls agreed to buy QEP Resources Inc’s natural-gas pipeline and processing unit for $2.5 billion. Hasbro Inc climbed +4.9% after reporting profit that beat estimates. International Business Machines Corp slid -7.1% after abandoning an earnings forecast for 2015. Apple Inc rose +2.1% on higher than forecast sales.

 

Asian stocks were mixed as investors awaited Chinese economic data and weighed US corporate earnings. The Nikkei 225 (-2.03%) dropped, while the Hang Seng (+0.05%) and S&P/ASX 200 (+0.11%) both gained. China Mobile lost -2.2% after posting a 12% drop in net income to 24.9 billion yuan in the third quarter as it spent more to encourage subscribers to switch to high speed data services. Zhejiang Zheneng Electric Power Co surged +9.9% amid a plan by provincial government to reform its state owned enterprises. Japanese exporters fell after the yen reversed losses intraday. Toyota slumped -1.6%. Honda Motor Co, which gets about 84% of its revenue abroad, lost -1.5%. Sony Corp, a company that generates almost three quarters of its sales outside Japan, lost -1.5%. Japan Steel Works lost -6.5% after saying it will book a loss of about 16 billion yen as provision for a problem with wind power generator parts.