Morning Spread

Morning Spread

Wednesday 22nd April 2015
IndexLevelChg (%)
UK Market7025.15-0.53
Dow Indust Avg17949.59-0.47
S&P 5002097.29-0.15
Nasdaq Composite5014.10+0.39
Nikkei 22520133.90+1.13
Hang Seng27933.85+0.30
IndexLevelChg (%)
Nymex 1m55.93-1.20
Gold Spot1199.20-0.26
GBP/USD1.4939+0.14
GBP/EUR1.3893-0.13
EUR/USD1.0753-0.01
USD/JPY119.56-0.02

European stocks rose as several companies reported earnings. The ESTX 50 (+0.51%), CAC 40 (+0.33%) and the Dax (+0.54%) all posted gains in early trading, while the UK markets (-0.09%) were slightly down. Roche Holding AG gained +2.5% after reporting first quarter revenue that beat analysts’ estimates. ASML Holding NV jumped +9.3% after saying it signed a deal with a US customer to deliver at least 15 of its extreme ultraviolet lithography systems. Volvo AB rallied +13% and Rolls-Royce Holdings Plc gained +4.2% after both companies named new CEO’s. Kering SA lost -4.4% as it reported a worse than expected drop in sales at its Gucci brand. Cie.Financiere Richemont SA slipped -0.9% after saying it expects a profit slump for the financial year ended in March. Travis Perkins rose +2.5% after saying first quarter comparable sales increased +5.1%. Ladbrokes Plc dropped -1.1% after reporting a 22% slump in quarterly profit. Tesco Plc was up +0.72% this morning despite reporting its biggest annual loss in its 96 year history, £5.74 billion.

 

US stocks were mixed with the Dow ending lower after a handful of uninspiring earnings reports, while the Nasdaq closed near a record high following a proposed biotech merger. The Dow Jones Industrial Average (-0.47%) and the S&P 500 (-0.15%) both declined, while the Nasdaq Composite (+0.39%) gained. Almost 73% of the S&P 500 components that have reported earnings so far have beat bottom-line expectations, but just 42.2% have beat expectations for revenue. DuPont lost -2.9% after reporting lower sales in all its businesses and said a strong dollar would take a toll on its full-year earnings. IBM fell -1.1% after citing currency effects when it reported a fall in revenue. Mylan rose +8.6% after Teva made an unsolicited offer of $82 per share, in what could be the industry’s largest takeover this year. Teva rose +1.4%. After the close, Chipotle Mexican Grill and Yahoo posted quarterly revenues that fell short of analyst estimates, and their shares fell -4.5% and 1.2%, respectively. Yum Brands and Broadcom gained about +4% each after they posted earnings that beat modest expectations.

 

Most Asian stocks rose as a weaker yen helped Japanese equities and as Japan’s trade balance swung to a surplus for the first time since 2012. The Nikkei 225 (+1.13%) and the Hang Seng (+0.37%) both gained, while the S&P/ASX 200 (-0.59) declined. Sunac China Holdings Ltd jumped nearly +10% to a record high, after media reports that Kaisa Group’s chairman had no plans to cancel a deal to sell his family’s 49.3% stake in Chinese developer to Sunac. Yahoo Japan Corp gained +2.7% after Yahoo inc said it was exploring options for its stake in the Japanese company. Mitsubishi UFJ Financial Group Inc advanced +3% for a second day. Tokyo Steel Manufacturing Co tumbled -6% after forecasting a drop in operating profit. Nomura Holdings Inc jumped +4.5% and Daiwa Securities Group inc added +3% as investors bought stocks that lagged the broader market this year. Inpex Corp fell -1.8% as crude oil declined for a second day after Saudi Arabia halted airstrikes against neighbouring Yemen and ahead of data that is forecast to show US stockpiles rose from already record levels.