Morning Spread

Morning Spread

Thursday 27th March 2014
IndexLevelChg (%)
UK Market6585.88-0.29
Dow Indust Avg16268.99-0.60
S&P 5001852.56-0.70
Nasdaq Composite4173.58-1.43
Nikkei 22514622.89+1.01
Hang Seng21834.45-0.24
IndexLevelChg (%)
Nymex 1m100.16-0.10
Gold Spot1294.03-0.80
GBP/USD1.6632-0.39
GBP/EUR1.2092+0.64
EUR/USD1.3754-0.25
USD/JPY

European shares fell on concern that the crisis in Ukraine may escalate. The ESTX 50 (-0.12%) UK Markets (-0.36%), CAC 40 (-0.21%) and the DAX (-0.10%) all posted losses in early trading. Hennes & Mauritz AB fell -2.9% after reporting quarterly profit that missed analysts’ estimates. United Internet AG added +4.3% after saying that profit jumped 25% last year. RBS lost -1.7% while Santander declined -0.9% after the Federal Reserve failed their US subsidiaries, citing flaws in the quality of their capital spending. Babcock international Group Plc fell -2.9% after agreeing to buy private equity owned Avincis for £920 to expand in helicopter servicing. Under the terms of the deal, Babcock will absorb £705 million of Avincis debt and carry out a rights offering to help fund the acquisition. Raiffeisen Bank International AG rose +1.7% after saying fourth quarter income surpassed analysts’ projections.  

 

US stocks after Barack Obama warned the crisis in the Ukraine may escalate and Facebook Inc dropped the most since 2012. The Dow Jones Industrial Average (-0.60%), S&P 500 (-0.70%) and the Nasdaq Composite (-1.43%) all declined. Facebook slid -6.9% after saying it will spend $2 billion to buy Oculus. King Digital tumbled -16% after raising $500 million in its initial public offering, pricing the shares in the middle of the marketed range. Peabody Energy Corp fell -2.7% after UBS AG cut its rating on the stock to “neutral” from “buy”, citing more financial distress in the coal industry over the next one or two years amid an oversupply. Citigroup dropped -5.4% in after-hours trading after it was revealed that it was among five banks that failed Fed stress tests, while Goldman Sachs Group and Bank of America passed only after reducing their requests for buybacks and dividends.

 

Asian stocks were mixed as utilities advanced and internet shares sank on concern valuations are too high. The Nikkei 225 (+1.01%) advanced, while the Hang Seng (-0.24%) and the S&P/ASX 200 (-0.50%) both declined. Kansai Electric Power Co advanced +4.8% and Tohoku Electric Power added +4.1% in Tokyo. Citic Pacific Ltd soared +13% in Hong Kong on a plan to buy its parent’s assets. Tencent fell -5.9% in Hong Kong after King Digital Entertainment Plc posted the biggest decline of a newly listed US company in over four months, even after pricing at a discount to peers. Naver Corp lost -3% in Seoul. People.cn Co declined -6.6% in Shanghai and Yahoo Japan Corp dropped -2.9%.