Morning Spread

Morning Spread

Monday 28th October 2013
IndexLevelChg (%)
UK Market6728.21+0.10
Dow Indust Avg15570.28+0.39
S&P 5001759.77+0.44
Nasdaq Composite3943.36+0.37
Nikkei 22514396.04+2.19
Hang Seng22806.58+0.48
IndexLevelChg (%)
Nymex 1m97.96+0.11
Gold Spot1353.01+0.15
GBP/USD1.6201-0.11
GBP/EUR1.1730-0.11
EUR/USD1.3812+0.12
USD/JPY

US equities were higher on Friday as investors reacted to economic news that was broadly positive but contained enough doubts to ensure that tapering would not start imminently. On the postive front, durable goods orders beat expectations, whereas the consumer confidence numbers came in weaker. Amazon.com was a stand out performer, up 9.4%, after the online retailer reported third quarter revenues which beat analyst forecasts and the company stated its intentions to increase spending further on warehouses and the range of web based services such as tablets. Microsoft was also a strong riser, up nearly 6%, again third quarter figures were impressive. Sales were driven by higher commercial sales of Office and server software, as well as good Xbox momentum. Amongst the fallers, retailers were weak with The Gap falling 1.1% and Abercrombie & Fitch was down 1.9%.

Asia was strong in overnight trading, driven by the continued optimism for liquidity and evidence of strong foreign buying. The Yen depreciated once again, which boosted exporters such as Panasonic up 2.6% and Toyota was up 1.8%. Positive earnings numbers boosted Nippon Electric Glass up 6.2% and chemicals company, Tokuyama, which gained 5.3%. Mitsubishi was up 4.2% after press reports suggested the company would buy back significant amounts of stock. In Australia, the equity index closed at the highest level since 2008 with ANZ Bank up nearly 2% and Commonwealth Bank was up nearly 1.5%.

Europe has started the week in muted fashion, with weather conditions in some parts of the UK causing disruption, insurers such as Aviva are down 0.62% and Prudential is down 0.5%. On a positive front, Aggreko is up nearly 3% after the company released positive results, capital expenditure looks set to pick up and management also expect contract conversion to also improve. In Continental Europe there are few features with some weakness in the Auto sector, Renault is down 1.7%, Peugeot is down 3% and Porsche is 1.2% lower. In Portugal, Banco Espirito Santo is up nearly 6% after third quarter results beat expectations. Elsewhere, BASF is up 1.2%, SAP is up 1.6% but AXA is down 1.2%.