Morning Spread

Morning Spread

Thursday 31st July 2014
IndexLevelChg (%)
UK Market6753.78-0.29
Dow Indust Avg16880.36-0.19
S&P 5001970.07+0.01
Nasdaq Composite4462.90+0.45
Nikkei 22515620.77-0.16
Hang Seng24756.85+0.10
IndexLevelChg (%)
Nymex 1m99.23-1.04
Gold Spot1296.09-0.02
GBP/USD1.6880+0.11
GBP/EUR1.2606-0.20
EUR/USD1.3392+0.10
USD/JPY102.82+0.12

European shares retreated amid mixed earnings, while the euro traded near a nine month low versus the dollar. The ESTX 50 (-0.48%), UK markets (-0.24%), CAC 40 (-0.29%) and the Dax (-0.79%) all posted losses in early trading. Portugal’s Banco Espirito Santo SA had trading in its shares paused after falling 29% in four days. The bank said it needs to raise capital after posting a first half net loss of €3.6 billion. Adidas plunged -9.7% after projecting net income of €650 million compared with a previous forecast for as much as €930 million. Fresenius jumped +5% after boosting its 2014 sales outlook. BNP Paribas climbed +1.9% despite posting a €4.32 billion loss, the largest in its 14 year history. Metro AG dropped -3.3% after it reported fiscal third quarter profit that met analysts’ estimates. BT Group gained +1.8% after reporting first quarter earnings that exceeded analysts’ estimates. Weir Group Plc slid -4% after saying currency fluctuations will continue to affect results.

 

US stocks were little changed as data showing better than forecast economic growth was offset by weaker earnings and the Federal Reserve’s decision to keep trimming asset purchases. The Dow Jones Industrial Average (-0.19%) was slightly down, the S&P 500 (+0.01%) was flat and the Nasdaq Composite (+0.45%) advanced. Genworth Financial Inc declined -14% after the insurer said it was reviewing whether enough funds had been set aside for claims. Public Service Enterprise Group Inc led a -1.7% retreat among utilities after earnings trailed estimates. Twitter Inc soared +20% as World Cup related demand helped the company double revenue. Regeneron climbed +5.8% after saying the Food and Drug Administration approved its Eylea injection for the treatment of diabetic macular edema. DreamWorks Animation SKG Inc plunged -12% after posting a second quarter loss and said securities regulators are investigating a writedown.

 

Asian stocks were mixed as Samsung Electronics Co and Nintendo Co led information technology shares lower. The Nikkei 225 (-0.16%) declined, while the Hang Seng (+0.10%) and the S&P/ASX 200 (+0.18%) both increased. Samsung sank -3.7% in Seoul after posting net income that fell short of expectations amid increased competition from Apple Inc and Chinese producers. Nintendo slumped -6.5% in Tokyo after reporting its third loss in the past four quarters. Singapore Airlines Ltd slipped -2.6% after reporting weaker earnings. Exporters advanced after a Commerce Department report showed GDP expanded at a 4% annualised pace in the second quarter, confirming the Fed’s view that a first quarter contraction was transitory. James Hardie, a company that gets about 73% of sales from the US, climbed +1.5% in Sydney. LG Display Co jumped +4.6% in Seoul.