Morning Spread

Morning Spread

Thursday 3rd October 2013
IndexLevelChg (%)
UK Market6458.38+0.32
Dow Indust Avg15133.14-0.39
S&P 5001693.87-0.07
Nasdaq Composite3815.02-0.08
Nikkei 22514157.25-0.09
Hang Seng23177.56+0.84
IndexLevelChg (%)
Nymex 1m103.63-0.45
Gold Spot1310.79-0.41
GBP/USD1.6200+0.12
GBP/EUR1.1906-0.28
EUR/USD1.3605+0.16
USD/JPY--

European stocks advanced as investors weighed the continuation of America’s government shutdown and data showing a gauge of China’s services industry rose
to six month high. The ESTX 50 (+0.01%), UK Markets (+0.34%) and the DAX (+0.07%) all posted small gains in early trading, while the CAC 40 (-0.18%) was slightly negative. Aviva climbed +1.5% after saying the sale of its US life insurance and annuities business to Apollo Global Management LLC’s Athene Holding Ltd generated proceeds of $2.6 billion, higher than the $1.8 billion purchase price disclosed in December. BP advanced +1.7% as the US Court of Appeals asked US district Judge Carl Barbier to review his interpretation of some of the terms of a settlement the company reached with spill victims lawyers in 2012. BP claim that the program’s administrator was approving millions of dollars in fictitious payments based on a flawed interpretation of the agreement. Unicredit gained +0.7% after saying it offered to buy Bank Gospodarki Zywnosciowej SA, in which Rabobank owns a 98% stake.

US stocks fell as investors watched for progress on ending an impasse over federal spending that shut down the government for a second day. The Dow Jones Industrial Average (-0.39%), S&P 500 (-0.07%) and the NASDAQ Composite (-0.08%) all declined. Alcoa slumped -1.8% after Deutsche Bank reduced its recommendation to “sell” from “hold”, citing the outlook for lower aluminium prices. The bank also said Alcoa could fall as much as 33% in the next year and should consider spinning off its primary metals business. Monsanto fell -1% after reporting a fourth quarter loss that was wider than anticipated and said earnings for the year that began 1st September will be no more than $5.20 a share excluding acquisition costs. Monsanto also agreed to buy farm data company The Climate Corp for $930 million. Global Payments climbed +11% after forecasting cash earnings in 2014 will be as much as $4.05 a share after earlier predicting profit will be no more than $4. The company also reported first quarter cash earnings were $1 a share, exceeding the average analyst estimate. Tenet Healthcare Corp jumped +6.1%, the biggest gain in the S&P 500, after Bank of America said the company is well positioned to win business on the BlueCross BlueShield of Texas network.

Asian stocks rose after a gauge of China’s services industries jumped to a six month high and as investors watched for progress on ending a budget impasse that has shut down the US government. The Hang Seng (+0.89%) and the S&P/ASX 200 (+0.37%) both climbed, while the Nikkei 225 (-0.09%) retreated. Gaming shares advanced in Hong Kong after visitors to Macau on October 1st and 2nd rose 14% from a year earlier amid National Day celebrations. Sands China rose +3.1% after DBS Vickers raised its rating to “buy” from “hold” and boosted its 12 month target price. Galaxy Entertainment Group Ltd advanced +3.1%. Chinese dairy producers surged amid speculation the government will provide government support. China Huishan jumped +9.1%. Biostime International Holdings Ltd gained +5.9%, while China Modern Dairy Holdings Ltd rose +6.5%. Leighton Holdings tumbled -10% in Sydney after it was reported that former executives knew of alleged corruption at the company.