Morning Spread

Morning Spread

Wednesday 28th January 2015
IndexLevelChg (%)
UK Market6803.70-0.12
Dow Indust Avg17387.21-1.65
S&P 5002029.55-1.34
Nasdaq Composite4681.50-1.89
Nikkei 22517795.73+0.15
Hang Seng24861.81+0.22
IndexLevelChg (%)
Nymex 1m45.41-1.77
Gold Spot1287.86-0.34
GBP/USD1.5197+0.01
GBP/EUR1.3368-0.15
EUR/USD1.1368+0.13
USD/JPY117.77+0.08

European stocks were little changed after several companies reported earnings. The ESTX 50 (-0.49%) and CAC 40 (-0.24%) both declined, while the UK markets (+0.02%) and Dax (-0.02%) were both flat. Electrolux AB jumped +8.6% after saying fourth quarter operating profit increased 20%. Anglo American Plc climbed +1.4% after saying coal and iron ore output rose in the fourth quarter. Hennes & Mauritz AB lost -2.1% after fourth quarter pre-tax profit trailed projections. Johnson Matthey Plc slumped -5.9% after reporting third quarter results and JPMorgan Chase & Co cut its price target on the company, citing lower operating profit at the company’s Process Technologies Group. Greek stocks continued to tumble amid concern a newly formed Syriza led coalition will challenge austerity measures imposed in the debt ridden nation. The new government also opposed moves by the EU to impose more sanctions on Russia. National Bank of Greece and Piraeus Bank slid more than 9%, extending record lows.

 

US stocks retreated as disappointing results from several companies pointed to weakening conditions, while an unexpected decline in durable goods orders also weighed on sentiment. The Dow Jones Industrial Average (-1.65%), S&P 500 (-1.34%) and the Nasdaq Composite (-1.89%) al declined. Microsoft fell -9.3% a day after sales of Windows and Office showed signs of waning. Caterpillar dropped -7.2% after giving an outlook below expectations, warning the recent plunge in oil prices would hurt its energy equipment business. Many multinational companies disappointed with earnings this quarter, with the stronger dollar a common culprit. P&G was one of the companies pressured by a strong dollar, dropping -3.4%. Apple Inc rose +5.4% after it posted better than expected revenue growth, along with record sales of its iPhone line. AT&T Inc rose +1.8% after reporting that revenue rose more than expected in the last quarter.

 

Asian stocks gained as strong corporate earnings among Japanese companies and a weaker yen boosted sentiment. Which offset concerns that inflows into Chinese equities will slow after some banks reduced leverage for trust products investing in shares. The Nikkei 225 (+0.15%), Hang Seng (+0.22%) and the S&P/ASX 200 (+0.10%) all gained. Industrial & Commercial Bank of China Ltd and China Life Insurance Co dropped at least -1.9% to lead Chinese financials lower. Shaanxi Coal Industry Co plunged -6.3% after the Shanghai Securities News said the nation’s biggest coal producing province won’t approve new mines for five years. Poly Real Estate Group Co slid -3.6% after China’s banking regulator in Shanghai asked local lenders to conduct the widest ever tests on their exposure to the struggling real estate industry. ANA Holdings Inc added +3.3%, while Chugoku Electric Power Co jumped +6.6% to lead gains by power producers. Komatsu Ltd declined -2.3% ahead of its earnings release and after industry bellwether Caterpillar posted disappointing results.