Morning Spread

Morning Spread

Tuesday 28th January 2014
IndexLevelChg (%)
UK Market6575.49+0.38
Dow Indust Avg15837.88-0.26
S&P 5001781.56-0.49
Nasdaq Composite4083.61-1.08
Nikkei 22514980.16-0.17
Hang Seng21960.64-0.07
IndexLevelChg (%)
Nymex 1m96.14+0.44
Gold Spot1254.43-0.21
GBP/USD1.6584-0.01
GBP/EUR1.2147+0.19
EUR/USD1.3653-0.19
USD/JPY

European stocks advanced as several companies posted profits that beat estimates. The ESTX 50 (+0.76%), UK Markets (+0.36%), CAC 40 (+0.67%), DAX (+0.62%) posted gains in early trading. F&C Asset Management Plc climbed +4% after Bank of Montreal bought the owner of the UK’s oldest investment fund for £708 million. STMicroelectronics NV slipped -1.1% after posting an unexpected loss for the final three months of last year. Siemens increased +1.5% after saying profitability improved. Swedbank AB fell -3% after saying net income declined 15% because of rising costs. Swedbank also said it would pay a dividend of 10.10 kronor per share, less than the 10.50kronor projection compiled by Bloomberg. Crest Nicholson Holdings Plc climbed +1.7% after reporting an increase in sales. ARM Holdings Plc and Imagination Technologies Group Plc dropped at least -2% each as Apple Inc missed estimates for quarterly sales of iPhones.

 

US stocks retreated as concern over Federal Reserve plans to cut stimulus and an economic slowdown in China tempered gains in Industrial shares. The Dow Jones Industrial Average (-0.26%), S&P 500 (-0.49%) and the NASDAQ Composite (-1.08%) all declined. Visa declined -2.2%, Microsoft slipped -2.1% and Goldman Sachs lost -1.8% to lead declines among large companies. Liberty Global Plc slipped -2.2% after agreeing to buy Ziggo NV for €4.9 billion. Liberty will combine Ziggo’s 2.7 million customers with its UPC cable unit as it competes with Dutch carrier Royal KPN NV. Xerox Corp dropped -5.6% after being cut to “market perform” from “outperform” at BMO Capital Markets, citing that the stock’s valuation already reflected the company’s improved services and technology mix. Caterpillar Inc jumped +5.9% after announcing a stock buyback and forecasting earnings above analysts’ estimates amid demand for construction equipment.

 

Asian stocks fell amid concern over the Federal Reserve’s plan to cut stimulus and as profit growth at China’s industrial companies slowed. The Nikkei 225 (-0.17%), Hang Seng (-0.07%) and S&P/ASX 200 (-1.26%) all retreated. Zijin Mining Group Co sank -2.8% in Hong Kong after reporting that full year net profit tumbled 58% from a year earlier. Apple suppliers declined. LG Display dropped -3.3% in Seoul, Sharp Corp fell -3.4% and AAC Technologies Holdings Inc decreased -4.8% in Hong Kong. LG Electronics Inc sank -3.9% in Seoul after posting an unexpected loss as a stronger South Korean Won decreased the value of overseas sales. Kawasaki Heavy Industries Ltd climbed +2% after JPMorgan Chase & Co advised buying shares of the company.