Morning Spread

Morning Spread

Thursday 29th January 2015
IndexLevelChg (%)
UK Market6768.51-0.84
Dow Indust Avg17191.37-1.13
S&P 5002002.16-1.35
Nasdaq Composite4637.99-0.93
Nikkei 22517606.22-1.06
Hang Seng24595.85-1.07
IndexLevelChg (%)
Nymex 1m44.52+0.16
Gold Spot1274.86-0.75
GBP/USD1.5134+0.28
GBP/EUR1.3373+0.06
EUR/USD1.1316-0.33
USD/JPY117.86-0.05

European stocks declined as oil’s descent to six year lows hit earnings and investment among energy stocks. The ESTX 50 (-0.89%), UK markets (-0.99%), CAC 40 (-0.70%) and the Dax (-0.77%) all posted losses in early trading. Shell tumbled -3.5% after saying it will cut $15 billion of spending over the next three years as the crash in oil prices saw fourth quarter profit miss expectations. Nokia Oyj plunged -3.6% after returning to profit in the fourth quarter as wireless carriers spent more on expanding and improving networks. Vallourec tumbled -7.1% after the producer of steel pipes for the oil and gas industry announced plans to write down assets by as much as €1.2 billion to reflect lower spending by energy producers amid plunging crude prices.

 

US stocks closed down, driven by a sharp decline in the S&P 500 energy sector, after the Federal Reserve said the domestic economy was growing at a solid pace, signalling it remains on track to raise interest rates later this year. The Dow Jones Industrial Average (-1.13%), S&P 500 (-1.35%) and the Nasdaq Composite (-0.93%) all retreated. The S&P energy sector finished down -3.9% as US crude futures tumbled more than 4% to $44.31 per barrel. Barclays and Goldman Sachs posted bearish notes on oil earlier in the day. The market had earlier been boosted by earnings from several companies. Apple advanced +5.7% after beating Wall Street expectations with record sales of iPhones in the holiday shopping season, which helped the company post the largest quarterly profit in corporate history. Boeing added +5.4% after handily beating top and bottom line expectations.

 

Asian shares extended their losses after the Federal Reserve cited global risks to the US economy and as oil slumped below $45 a barrel. The Nikkei 225 (-1.06%) and the Hang Seng (-1.07%) both decreased, while the S&P/ASX 200 (+0.30%) increased. PetroChina Co slid -2.1% as regional energy producers retreated. Samsung Electronics Co sank -1.3% in Seoul after operating profit at South Korea’s biggest company slumped. Fortescue Metals Group Ltd surged +9.3% in Sydney after saying shipments jumped as China absorbs supply increases as higher cost producers are displaced. Komatsu tumbled -8.5% and Hitachi Construction Machinery declined -11% after reporting poor earnings.