Morning Spread

Morning Spread

Monday 27th October 2014
IndexLevelChg (%)
UK Market6365.54-0.36
Dow Indust Avg16805.41+0.76
S&P 5001964.58+0.71
Nasdaq Composite4483.72+0.69
Nikkei 22515388.72+0.63
Hang Seng23143.23-0.68
IndexLevelChg (%)
Nymex 1m81.07+0.07
Gold Spot1231.45+0.04
GBP/USD1.6099-0.05
GBP/EUR1.2692-0.04
EUR/USD1.2684+0.11
USD/JPY107.82+0.32

European stocks retreated as a report showed that German business confidence fell for a sixth month, which offset earlier gains following the region’s bank stress test results. The ESTX 50 (-0.31%), Dax (-0.32%), UK markets (-0.19%) and the CAC 40 (-0.29%) all posted losses in early trading. Erste Group Bank AG rallied +5%, Raiffeisen Bank International AG climbed +4.4%, Commerzbank AG gained +2.8% and Eurobank Ergasias SA rose +3.1%. TNT Express lost -7% after reporting an operating loss for the third quarter because of provisions related to restructuring and a competition case in France. Lloyds Banking Group Plc slid -2.2% after Jefferies Group LLC lowered its rating on the stock to “sell”, saying the bank probably won’t pay a dividend until 2016 as it will require a higher capital ratio than initially thought.

 

US stocks rose after several companies climbed after reporting earnings. The Dow Jones Industrial Average (+0.76%), S&P 500 (+0.71%) and the Nasdaq Composite (+0.69%) all advanced. P&G gained +2.3% after saying it would exit Duracell, preferably by splitting the business into a standalone company and giving shareholders the option of exchanging P&G shares for stock in the new equity. Microsoft climbed +2.5% after revenue at the Nokia handset business which Microsoft acquired earlier this year, topped projections. United Parcel Service Inc advanced +0.1% after profit beat estimates. SodaStream surged +15% after industry newsletter Beverage Digest said the company plans to test PepsiCo-branded products. Amazon.com Inc slid -8.3% after posting the biggest quarterly loss since 2003.

 

Asian stocks rose amid optimism about the financial strength of European banks. The S&P/ASX 200 (+0.86%) and Nikkei 225 (+0.63%) both increased, while the Hang Seng (-0.68%) declined. Tokyo Electric Power Co jumped +17% on report the utility’s profit may nearly triple. JSR Corp soared +6.5% after announcing a share buyback. Fanuc Corp fell -4.3% after saying its second quarter orders fell to 134.5 billion yen from 142 billion yen in the previous quarter. Fujifilm Holdings Corp gained +2.9% after it agreed to acquire Kalon Biotherapeutics LLC. Hong Kong Exchanges & Clearing Ltd plunged -4.7% after Charles Li, the CEO of the bourse operator, said he had no idea when authorities will give the green light to proceed on the Shanghai-Hong Kong stock link. Tencent retreated -1.2% while Galaxy Entertainment Group Ltd tumbled -3.1% after being citied as beneficiaries of the trading link.