Morning Spread

Morning Spread

Friday 23rd May 2014
IndexLevelChg (%)
UK Market6808.04-0.18
Dow Indust Avg16543.08+0.06
S&P 5001892.49+0.24
Nasdaq Composite4154.34+0.55
Nikkei 22514462.17+0.87
Hang Seng22965.86+0.05
IndexLevelChg (%)
Nymex 1m103.71-0.03
Gold Spot1293.63-0.03
GBP/USD1.6847+0.05
GBP/EUR1.2363+0.11
EUR/USD1.3627-0.17
USD/JPY

European stocks declined as investors awaited data that may show a rebound in US housing activity and a drop in German business confidence. The ESTX 50 (-0.16%), UK Markets (-0.19%), CAC 40 (-0.07%) and the DAX (-0.03%) all posted small losses in early trading. Pandora A/S fell -3.5% as some investors sold a stake of about 10% in the company. Smiths Group Plc fell -3.2% after forecasting a drop in profitability at its Smiths Detection unit. The company cited working capital adjustments, reduced volumes and lower margin contracts. Adecco advanced +0.9% after UBS raised its rating on the company from “sell” to “buy”. Alstom retreated -1% after GE agreed to a French government request to extend its deadline for the acquisition until 23rd June as officials seek better terms. Separately, the Wall Street Journal yesterday reported that Siemens is considering a formal offer for Alstom’s energy unit as due diligence comes to an end. Randstad climbed +2.6% after UBS raised its rating on the stock from “neutral” to “buy”. BTG Plc rallied +4.8% after saying the US Food and Drug Administration approved its EkoSonic Endovascular System for treating pulmonary embolism.

 

US stocks rose and small-cap shares rebounded as data showing strength in manufacturing boosted confidence in the global economy. The Dow Jones Industrial Average (+0.06%), S&P 500 (+0.24%) and the Nasdaq Composite (+0.55%) all advanced. Best Buy rallied +3.4% after posting first quarter profit that topped analysts’ estimates as the company continued to trim costs. Hewlett-Packard dropped -2.3% after saying sales in the second quarter fell 1% to $27.3 billion from a year earlier, lower than the $27.4 billion analysts projected for the period. Hess Corp jumped +1.1% after Marathon agreed to acquire the company’s petrol stations and retail business for a total $2.87 billion, expanding its footprint to 23 states from nine. PulteGroup Inc soared +2.2% and D.R.Horton Inc climbed +2.4% after a report on existing home sales. Activision Blizzard Inc dropped -1.6% after saying that Vivendi SA is selling half of its remaining stake in the company in an offer valued more than $850 million.

 

Asian stocks rose after data showed US manufacturing expanded and as the yen held yesterdays losses. The Nikkei 225 (+0.87%), Hang Seng (+0.10%) and the S&P/ASX 200 (+0.23%) all gained. Li & Fung Ltd, a company that gets 62% of its revenue in the US, gained +2.3% in Hong Kong. Sunac China Holdings Ltd jumped +7.4% in Hong Kong after it agreed to buy a stake in developer Greentown China Holdings Ltd. Greentown China soared +6.2%. Takeda Pharmaceutical Co added +1.6% in Tokyo after it was found not liable for the bladder cancer of two women who used its Actos diabetes medication. Chinese developers climbed after China Securities Journal reported the government will remove home purchase restrictions depending on market situations and avoid causing market volatility, citing an unidentified researcher with the housing ministry.