Morning Spread

Morning Spread

Tuesday 29th October 2013
IndexLevelChg (%)
UK Market6751.29+0.37
Dow Indust Avg15568.93-0.01
S&P 5001762.11+0.13
Nasdaq Composite3940.13-0.08
Nikkei 22514325.98-0.49
Hang Seng22846.54+0.18
IndexLevelChg (%)
Nymex 1m98.38-0.29
Gold Spot1345.28-0.53
GBP/USD1.6089-0.30
GBP/EUR1.6089+0.08
EUR/USD1.3761-0.22
USD/JPY

Europe is moving broadly higher this morning, with a busy release of corporate results. In the Banking sector, UBS has disappointed the market and the stock is down over 5%. The return to profitability has been delayed by increasing demands from the Swiss regulator and also further litigation expenses. In the UK, Lloyds Banking is down 2.24% and Standard Chartered is just over 1% lower. The stand out gainer in the UK is B.P, which is nearly 5% up today. The oil giant has released figures which are more positive than expected and the dividend has been raised. Elsewhere, Swedish Match is down 4.3%, Iberdrola is up 2.3% and Deutsche Bank is 2.3% lower.

US equities were virtually flat in trading on Monday, with very low volumes, as investors awaited the outcome later in the week of the Federal Reserve FOMC meeting. There was also some mixed economic data with lower durable goods orders in September and poor employment data. Some of the technology stocks gave up recent gains with Facebook down 3.3%. Amazon was down 1.4% and Microsoft was 0.45% lower. There was some focus in the Pharmaceutical sector as Merck reported numbers, which disappointed investors on the revenue line. There was more competition on the oral diabetes market, although the company stressed they were still considering divesting the animal health and consumer businesses. The stock fell 2.6%. Amongst stocks that were rising included Bristol Myers up just over 6.5%, whilst Alcoa gained 3.5% and United Parcel was up 2.25%.

Asia was mixed overnight, again on relatively low volumes, with falls in both Australia and Japan, whilst Hong Kong gained. In Japan there were several companies reporting results which beat market expectations. These included, Toshiba Tec up nearly 6%, Keyence up 5.2%, Yahagi Construction was up 17% and Toa Road was up 10%. The power company Tepco was up 3.5% on reports that the Government would pay for part of the Fukushima cleanup. The major decliner was Komatsu which lost 8.1%, after the results missed analyst expectations. Macau gaming stocks were lower on a Credit Suisse report that the rally had gone too far, Galaxy Entertainment fell nearly 4%. Chinese banks were in good form, as liquidity conditions were supportive, ICBC was up 2.7% and China Construction Bank gained 2.1%.