Morning Spread

Morning Spread

Friday 25th July 2014
IndexLevelChg (%)
UK Market6818.41-0.04
Dow Indust Avg17083.80-0.02
S&P 5001987.98+0.05
Nasdaq Composite4472.11-0.04
Nikkei 22515457.87+1.13
Hang Seng24216.01+0.31
IndexLevelChg (%)
Nymex 1m102.02-0.05
Gold Spot1292.55-0.09
GBP/USD1.6977+0.03
GBP/EUR1.2626+0.14
EUR/USD1.3446-0.17
USD/JPY101.91-0.08

European stocks declined after several companies posted worse than expected financial results. The ESTX 50 (-0.39%), UK Markets (-0.04%), CAC 40 (-0.80%) and the Dax (-0.22%) all posted losses in early trading. LVMH lost -4.9% after saying first half profit from recurring operations fell 5% as Asian demand weakened in the second quarter, led by slower Chinese spending. Danone fell -1% as sales and profit missed projections. Air France-KLM Group rose +4.8% after reporting second quarter profit that exceeded estimates. Sky Deutschland AG added +2.2% after British Sky Broadcasting Group Plc offered to buy the German broadcaster. Kronen tausend985 GmbH, a subsidiary of BskyB, offered to pay €6.75 per share for the rest of Sky Deutschland after agreeing to buy 21st Century Fox Inc’s 57.4% in the company. BskyB fell -4.1%. Royal Bank of Scotland Group Plc gained +1.6% after predicting first half profit almost doubled. Balfour Beatty Plc and Carillion Plc rallied +12% and +7.8% respectively, after saying they are in preliminary merger talks.

 

Asian stocks rose as earnings from several companies boosted investor sentiment. The Nikkei 225 (+1.13%) and the Hang Seng (+0.19%) both advanced, while the S&P/ASX 200 (-0.08%) declined. Fanuc jumped +5.3% after posting quarterly profit that beat analyst estimates. Itochu Corp rose +2.5% after announcing a share buyback. Treasury Wine Estates Ltd slipped +1.8% in Sydney after Credit Suisse Group AG said the proposed deal with KKR & Co is unlikely to happen, lowered its share price forecast by 33% and reiterated its “underperform” rating. Advantest Corp plunged -6.7% after posting profit that missed estimates. Kia Motors Corp gained +1.6% in Seoul after reporting second quarter profit that beat analyst estimates.  

 

US stocks were little changed as growth in global manufacturing offset a drop in home sales. The Dow Jones Industrial Average (-0.02%), S&P 500 (+0.05%) and the Nasdaq Composite (-0.04%) registered small changes. Facebook jumped +5.2% to a record after saying second quarter sales surged 61%. Under Armor Inc surged +15% after increasing its 2014 profit target. Caterpillar sank -3.1% after forecasting full year profit that fell short of estimates. D.R.Horton dropped -12% for the biggest loss and its worst day since November 2009 after saying its fiscal third quarter earnings as the company’s sales margins shrank. Airline stocks slumped, as a third fatal airline crash in the past week left 2014 on track for the worst year in almost a decade for passenger fatalities. United Continental Holdings Inc slid -2.4% and American Airlines Group Inc lost -2.7% even after the two companies disclosed dividends earlier in the day. Amazon.com Inc sank -6.2% in late trading after reporting a loss wider than analysts’ projected.