Morning Spread

Morning Spread

Thursday 30th April 2015
IndexLevelChg (%)
UK Market6936.65-0.14
Dow Indust Avg18035.53-0.41
S&P 5002106.85-0.37
Nasdaq Composite5023.64-0.63
Nikkei 22519520.01-2.69
Hang Seng28133.00-0.94
IndexLevelChg (%)
Nymex 1m59.34+1.30
Gold Spot1205.65+0.08
GBP/USD1.5481-0.15
GBP/EUR1.3766-0.75
EUR/USD1.1246+0.92
USD/JPY118.80-0.07

European stocks declined following US and Asian stocks lower after comments by the Federal Reserve. The ESTX 50 (-0.91%), UK markets (-0.23%), CAC 40 (-1.00%) and the Dax (-0.60%) all posted losses in early trading. Nokia Oyj dropped -8.1% after posting first quarter profitability for its networks unit that missed analyst estimates. STMicroelectronics NV slipped -6.8% after forecasting revenue and profit that fell short of analysts’ estimates amid a slowdown in demand. Royal Bank of Scotland Group Plc retreated -1.9% after posting a larger quarterly loss than analysts estimated as it set aside more money for restructuring and currency manipulation probes. Sanofi advanced -1.1% after quarterly profit and sales exceeded projections and predicted foreign exchange effects will boost earnings by 12% this year.

 

US stocks declined as the Federal Reserve cited weakness in the US economy and data showed US growth slowed more sharply than expected in the first quarter. The Dow Jones Industrial Average (-0.41%), S&P 500 (-0.37%) and the Nasdaq Composite (-0.63%) all retreated. The central bank’s policy statement put in place a meeting-by-meeting approach toward the timing of its first rate hike since June 2006, making such a decision solely dependent on incoming economic data. Insurer Humana’s shares fell -7.2% after results missed forecasts. Shares of rivals also fell, including UnitedHealth, which was down -3.4%. Twitter fell -8.9%, a day after the company cut its full year forecast due to weak demand for its new direct response advertising. Wynn Resorts fell -16.6% after reporting weaker than expected first quarter profit.

 

Asian stocks dropped after the Federal Reserve downplayed weak US economic growth and kept raising interest rates on the table for later this year. Earnings from Japanese companies also failed to live up to expectations. The Nikkei 225 (-2.69%), Hang Seng (-1.09%) and the S&P/ASX 200 (-0.83%) were all negative. Honda Motor fell -6.7% after it forecast only a 0.4% rise in net profit for the current financial year to March. NTT Docomo dropped -6.1% as its profit guidance of 6.4% operating profit growth in 2015/16 failed to excite investors. Oriental Land, the operator of Tokyo Disney Land, fell -5.2% and Yamasaki Baking fell -9.7% after reporting earnings. Takeda Pharmaceutical dropped -3% after it reported its first annual loss in history to take charge for settlement costs of a lawsuit related to its diabetes drugs in the US. Jiangxi Copper Co plunged -2.2% after posting the lowest first quarter earnings growth since listing in 2006.