Morning Spread

Morning Spread

Tuesday 27th January 2015
IndexLevelChg (%)
UK Market6833.24-0.28
Dow Indust Avg17678.70+0.03
S&P 5002057.09+0.26
Nasdaq Composite4771.76+0.29
Nikkei 22517768.30+1.72
Hang Seng24807.28-0.41
IndexLevelChg (%)
Nymex 1m45.09-0.13
Gold Spot1283.01+0.13
GBP/USD1.5087+0.03
GBP/EUR1.3335-0.34
EUR/USD1.1314+0.31
USD/JPY118.12+0.22

European stocks declined as disappointing results from several companies raised concern about the coming earnings season and weakened demand for stocks. The ESTX 50 (-0.64%), UK markets (-0.24%), CAC 40 (-0.50%) and the Dax (-0.49%) all posted losses in early trading. Siemens fell -1.9% after it said profit from its industrial units dropped 4% last quarter. Ericsson was down -3.3% after it reported fourth quarter sales below expectations and said it expected business in North America to remain slow. Philips shed -3.5% as it cut its 2016 sales and earnings estimates after a setback in 2014. EasyJet plc added +4.3% after posting an increase in first quarter revenue. Crest Nicholson Holdings Plc advanced +4.3% as annual profit exceeded projections. IAG SA rose +1.2% after saying takeover target Aer Lingus Group Plc granted access to its books. Royal Mail Plc and Dixons Carphone Plc fell at least -2.4% as brokerages recommended selling the shares.  

 

US stocks rose amid optimism fallout from anti austerity party Syriza’s victory in Greece’s election will be contained. The Dow Jones Industrial Average (+0.03%), S&P 500 (+0.26%) and the Nasdaq Composite (+0.29%) all increased. Microsoft Corp fell more than -2% in after hours trading, despite reporting second quarter sales and profit that exceeded analysts’ estimates. United Technology slid -2.1% after cutting its earnings forecast. D.R.Horton Inc gained -5.5% after posting better than expected first quarter profit as sales and orders jumped. MeadWestvaco Corp jumped +14% after Rock-Tenn Co agreed to acquire the company in a deal valued at about $9.2 billion to create the world’s second largest packaging company. Mattel Inc retreated -5% after replacing the chairman and CEO amid a five quarter sales slump and holiday season earnings that trailed analysts’ estimates.

 

Asian stocks rose as a weaker yen buoyed Japanese shares amid optimism the actions of Greece’s new government won’t force the nation to leave the euro currency bloc. The Nikkei 225 (+1.72%) and the S&P/ASX 200 (+0.83%) both increased, while the Hang Seng (-0.41%) declined. Honda Motor Co climbed +2%, pacing gains among Japanese exporters after the yen fell by the most in a week yesterday. Meiji Holdings Co surged +6.1% to extend a record high in Tokyo after announcing a price increase for its dairy products. Galaxy Entertainment Group Ltd and Wynn Macau Ltd jumped more than +6.4% after table gaming revenue in Macau gained last week and Union Gaming Group upgraded casino stocks to buy.