Morning Spread

Morning Spread

Tuesday 3rd February 2015
IndexLevelChg (%)
UK Market6865.36+1.22
Dow Indust Avg17361.04+1.14
S&P 5002020.85+1.30
Nasdaq Composite4676.69+0.89
Nikkei 22517335.85-1.27
Hang Seng24554.78+0.29
IndexLevelChg (%)
Nymex 1m50.88+2.64
Gold Spot1282.70+0.65
GBP/USD1.5034-0.05
GBP/EUR1.3261+0.02
EUR/USD1.1338+0.04
USD/JPY117.38-0.07

European stocks climbed and Greek bonds rallied after the government retreated from its call for a debt writedown. The ESTX 50 (+1.54%), UK markets (+1.18%), CAC 40 (+1.47%) and the Dax (+1.29%) all posted gains in early trading. BP Plc jumped +4% after saying its profit adjusted for onetime items and inventory changes dropped to $2.2 billion from $2.8 billion a year earlier. Athen’s benchmark index ATG gained 6%, with the country’s banks index rising 11.6%. National Bank of Greece climbed +12.9%, Alpha Bank was up +12.4% and Eurobank jumped +13.5%. Santander rose +3.3% after reporting a nearly 70% jump in fourth quarter profit, lifted by earnings from its lending business and as charges on bad loans fell. Areva declined -0.5% after it warned that it expects to book a significant increase in provisions and writedowns of assets in its 2014 accounts.   

 

US stocks rose as energy shares rallied after the price of crude oil advanced to a one month high. The Dow Jones Industrial Average (+1.14%), S&P 500 (+1.30%) and the Nasdaq Composite (+0.89%) all advanced. The S&P 500 energy sector gained +3%, as US crude settled up 2.8% at $49.57 a barrel, despite a strike at US refineries that could boost crude supply. Exxon Mobil Corp rose +2.5% after it reported a smaller than expected profit drop. The results follow several disappointing earnings results from many multinational companies. Chevron Corp jumped +2.5%. Denbury Resources Inc added +12% for the biggest gain in the S&P 500, while Chesapeake Energy Corp climbed +7%. First Solar and SunEdison Inc jumped at least +6.7% as Barack Obama’s 2016 budget calls for continued tax breaks for wind and solar energy.

 

Asian stocks were mixed amid ongoing growth concerns, while the Australian dollar plumbed six year lows after the Reserve Bank of Australia cut interest rates to a record low. The Nikkei 225 was down -1.27%, while the Hang Seng (+0.29%) and the S&P/ASX 200 (+1.46%) both increased. Toyota Motor Corp, which gets more than 75% of revenue abroad, declined -1.4% as a stronger yen sent Japanese exporters lower. Bridgestone Corp tumbled -3.3% as higher crude prices threatened to increase costs. Japan Airlines Ltd slumped -5.2%. Inpex Corp jumped +6.9%. Fast Retailing Co fell -2% and KDDI Corp dropped -2.9%. Singapore Airlines Ltd dropped -3% as oil futures extended their rally. Industrial & Commercial Bank of China Ltd climbed +1.5% in Hong Kong.