Morning Spread

Morning Spread

Monday 27th April 2015
IndexLevelChg (%)
UK Market7041.27-0.42
Dow Indust Avg18080.14+0.12
S&P 5002117.69+0.23
Nasdaq Composite5092.09+0.71
Nikkei 22519983.32-0.18
Hang Seng28433.59+1.33
IndexLevelChg (%)
Nymex 1m57.06-0.16
Gold Spot1182.81+0.29
GBP/USD1.5150+0.25
GBP/EUR1.3965-0.03
EUR/USD1.0849-0.23
USD/JPY119.18-0.16

European shares dropped this morning on concerns over Greece’s debt situation prompting investors to trade cautiously. The ESTX 50 (-0.76%), UK markets (-0.40%), CAC 40 (-1.02%) and the Dax (-0.21%) all posted losses in early trading. German Finance Minister Wolfgang Schaeuble hinted on Saturday that Berlin was preparing for a possible Greek default, drawing parallel with the secrecy of German reunification plans in 1989. Volkswagen gained +4% after the resignation of its chairman. HSBC rose +3.2% on a report that Europe’s biggest bank was weighing plans to spin off its British retail bank. Deutsche Bank AG lost -2.8% after scrapping its goal of 12% return on equity target for next year, saying it plans to achieve 10% in the medium term. Anglo American Plc and ArcelorMittal added more than +1.3% after China boosted stimulus measures.

 

US stocks closed higher for the weekend, propelled by strong results from several companies. The Dow Jones Industrial Average (+0.12%), S&P 500 (+0.23%) and the Nasdaq Composite (+0.71%) all advanced. Amazon surged +14.1% to a high after revenue beat estimates. Google ended -2.9% after reporting quarterly results, while Microsoft jumped +10.5% after it topped estimates. Xerox slumped -8.75% after it cut its 2015 profit forecast, blaming the strong dollar. Time Warner Cable jumped +4.8% on news Charter Communications Inc’s representatives reached out to be begin discussions on a potential merger. Comcast earlier abandoned its proposed $45 billion merger with Time Warner Cable.

 

Asian stocks climbed, following US stocks higher. The Hang Seng (+1.33%) and the S&P/ASX 200 (+0.83%) both gained, while the Nikkei 225 (-0.18%) declined. Chinese stocks rallied, led by heavyweights such as China Petroleum & Chemical Corp and PetroChina Co Ltd on expectations that Beijing will accelerate mergers among state owned enterprises. China Petroleum & Chemical and PetroChina jumped by their +10% limit in Shanghai on merger expectations. Bets on consolidation also pushed shares of China Shipbuilding, CSSC Holdings Ltd and Guangzhou Shipyard International Co Ltd up over +8%. Sony Corp sank -0.3% after Nikkei newspaper report that the company’s operating profit will reach about 300 billion yen, below estimates. Mazda Motor Corp sank -2.8% after its operating profit projection missed expectations.