Morning Spread

Morning Spread

Monday 22nd September 2014
IndexLevelChg (%)
UK Market6785.42-0.77
Dow Indust Avg17279.74+0.08
S&P 5002010.40-0.05
Nasdaq Composite4579.79-0.30
Nikkei 22516205.90-0.71
Hang Seng23955.49-1.44
IndexLevelChg (%)
Nymex 1m92.04-0.40
Gold Spot1214.44-0.10
GBP/USD1.6332-0.27
GBP/EUR1.2709+0.10
EUR/USD1.2851+0.17
USD/JPY109.00+0.04

European stocks fell as China’s finance minister damped speculation his government will boost economic stimulus. The ESTX 50 (-0.10%), UK markets (-0.63%), CAC 40 (-0.08%) and the Dax (-0.18%) all posted losses in early trading. Tesco sank -9.9% after saying it overstated its guidance for first half earnings by about £250 million. Wm Morrison Supermarkets Plc and J Sainsbury Plc each lost more than -2%. The company had said operating profit for the period would be £1.1 billion. Siemens AG dropped -0.6% after agreeing to buy Dresser-Rand Group Inc for $7.6 billion. Cermaq surged +16% after Mitsubishi offered to buy the Norwegian fishing company for 8.88 billion kroner. The offer price is 14% higher than Cermaq’s closing price on September 19th.  Glencore Plc slipped -2.9% and BHP Billiton Ltd declined -2.3% following the Chinese Finance Ministers comments that China’s economy faces some downward pressure.

 

US stocks were little changed as shares of Alibaba Group Holding Ltd began trading and corporate takeovers boosted investor optimism. The Dow Jones Industrial Average (+0.08%) increased, while the S&P 500 (-0.05%) and the Nasdaq Composite (-0.30%) both declined. Alibaba rose +38% in its US trading debut, after the company raised a record breaking $21.8 billion. The e-commerce company, which started in 1999 with $60,000 by founder Jack Ma, is now valued at $231 billion. Making it larger than Amazon.com Inc and EBay Inc combined, and more valuable than all but 9 companies in the S&P 500. Yahoo! Inc, which owns a stake in Alibaba, slipped -2.7%. Dresser-Rand Group Inc rallied +9.4% as Siemens AG prepared to offer more than $6.5 billion for the company. Oracle Corp slid -4.2% after Larry Ellison stepped down as CEO.

 

Asian shares declined as investors awaited data this week that could provide evidence of a slowdown in China. The Nikkei 225 (-0.71%), Hang Seng (-1.44%) and the S&P/ASX 200 (-1.29%) all retreated. SoftBank dropped -6.1% after Alibaba Group Holding Ltd’s initial public offering reduced the allure of the Japanese company as a proxy for the Chinese e-commerce company. China Galaxy Securities Co slumped -5.5% after saying its fixed income chief and two other employees are cooperating with the nation’s judicial authority. Kawasaki Kisen Kaisha Ltd sank -2.8%. Inpex Corp jumped +2.4%. Japan Airlines Co advanced +1.2%.