Morning Spread

Morning Spread

Thursday 31st October 2013
IndexLevelChg (%)
UK Market6755.81-0.34
Dow Indust Avg15618.76-0.39
S&P 5001763.31-0.49
Nasdaq Composite3930.62-0.55
Nikkei 22514327.94-1.20
Hang Seng23206.37-0.42
IndexLevelChg (%)
Nymex 1m96.60-0.15
Gold Spot1334.19-0.77
GBP/USD1.6041-0.16
GBP/EUR1.1697-0.29
EUR/USD1.3714-0.41
USD/JPY

In Asia there was also weakness, with markets following the US lower. Corporate earnings have generally been in line during the latest reporting period but stocks issuing profit warnings have been harshly treated. In the Shipping sector, Nippon Yusen dropped over 8% as the company reduced profit forecasts by 10%. Others to fall in the sector, included Mitsui OSK down 6.6% and Mitsubishi Logistics fell 5.36%. Shipping was also in focus in South Korea as Korean Air Lines lost 11% after stating its shipping affiliate had a liquidity shortage. Aluminium Corp of China fell jsut over 2% after reporting wider losses, whereas Shimao Property gained 4% as property development companies were strong.

Europe is only mildly weaker in early trading with the main feature being the 4.5% drop in Royal Dutch Shell. The oil major has reported third quarter earnings which missed analyst forecasts. Production volumes were weak and refining margins also dropped. Another FTSE 100 constituent to report is AstraZeneca which ic currently down 2.5%, there was nothing specific in the results but they were generally lacklustre. In France, BNP Paribas has surprised investors with better than expected profits and the stock is 2.1% higher with Credit Agricole up 1.7% and SocGen up 1.8%. The world’s largest brewer, Anheuser-Busch, has also posted good results and the share are up 1.65%.

US equities finally saw some weakness, as investors digested the latest Federal Reserve comments. For now the stimulus measures remain unchanged, but comments were less dovish and tapering looks set for early 2014. One of the biggest decliners was the world’s biggest professional networking site, LinkedIn, with the shares falling over 9%. Fourth quarter revenues missed analyst expectations, whilst Facebook was little changed after reporting revenues that beat expectations. Changes in technology are clearly having an important impact on how revenues and profits are shaped going forwards. Western Union, the money transfer agent, dropped over 12%, with lower profits and higher investment costs needed. Other fallers included Conoco down 1.4%, Time Warner down just over 2% and Ford down 1.5%. Gainers included Target Corp up 2.1% and Newmont Mining up 1.4%.