Morning Spread

Morning Spread

Wednesday 21st October 2015
IndexLevelChg (%)
UK Market6352.23+0.11
Dow Indust Avg17217.11-0.08
S&P 5002030.77-0.14
Nasdaq Composite4880.97-0.50
Nikkei 22518554.28+1.91
Hang Seng22989.22-0.37
IndexLevelChg (%)
Nymex 1m45.63-1.43
Gold Spot1174.80-0.11
GBP/USD1.5452+0.04
GBP/EUR1.3628+0.07
EUR/USD1.1338-0.12
USD/JPY120.03-0.16

European stocks retreated as companies that missed expectations outweighed those that exceeded expectations. The ESTX 50 (-0.36%), UK markets (-0.20%), CAC 40 (-0.48%) and the Dax (-0.10%) all posted losses in early trading. Pearson dropped nearly -10% after saying it expected earnings to be at the bottom end of its range due to lower enrolments at some colleges in the United States and lower school text book purchases in some parts of South Africa. Credit Suisse fell -2.8% after announcing plans for two capital increases to raise just over 6 billion Swiss francs after posting third quarter net profit of 779 million francs, compared with a predicted 921 million francs in a Reuters poll.

 

US stocks declined as a drop in healthcare and biotech stocks offset gains. The Dow Jones Industrial Average (-0.08%), S&P 500 (-0.14%) and the Nasdaq Composite (-0.50%) all decreased. The S&P healthcare sector fell 1.5%, while the Nasdaq Biotech Index dropped 3.2% amid concerns about pricing. IBM dropped -5.7% after reporting a bigger than expected decline in quarterly revenue and cut its full year profit forecast. United Technologies rose +3.9% after reporting results that beat analysts’ expectations, giving the Dow its biggest boost. Verizon advanced +1.2% after reporting better than expected revenue and profit. Tesla dropped -6.6% after Consumer Reports magazine found that advanced duel saving technology and digital multimedia systems in vehicles including the Tesla Model S sedan are hurting reliability.

 

Asian stocks rose, led by gains in Japanese shares, amid optimism that weak trade data will spur the Bank of Japan into boosting its stimulus program. The Nikkei 225 (+1.91%) and the S&P/ASX 200 (+0.24%) both advanced, while the Hang Seng (-0.37%) retreated. LG Electronics Inc surged +14% in Seoul after General Motors said it chose the South Korean firm as a partner in developing its Chevrolet Bolt electric vehicle. Toyota Motor Corp and Honda Motor Co, who get more than three quarters of sales outside Japan, rose more than +2% each in Tokyo. Yasakawa Electric Corp jumped +9.2% after reporting second quarter profit that beat analyst estimates.