Morning Spread

Morning Spread

Monday 4th August 2014
IndexLevelChg (%)
UK Market6688.53+0.14
Dow Indust Avg16493.37-0.42
S&P 5001925.15-0.29
Nasdaq Composite4352.64-0.39
Nikkei 22515474.50-0.31
Hang Seng24600.08+0.28
IndexLevelChg (%)
Nymex 1m98.12+0.25
Gold Spot1295.00+0.13
GBP/USD1.6828-0.05
GBP/EUR1.2531+0.03
EUR/USD1.3430+0.02
USD/JPY102.55+0.06

European stocks climbed as Portugal bailed out Banco Espirito Santo SA, easing concern about the region’s most indebted banks. The ESTX 50 (+0.47%), UK markets (+0.11%), CAC 40 (+0.45%) and the Dax (+0.03%) all posted gains in early trading. Alcatel-Lucent SA rose +2.1% as Morgan Stanley upgraded the company to “overweight” from “equal weight”. Balfour Beatty added +1.4% after the Sunday Telegraph reported that WS Atkins, WSP and two private equity firms are competing to buy Parsons Brinckerhoff. Balfour Beatty’s merger talks with Carillion Plc collapsed last week after Balfour Beatty refused to abandon its planned sale of the New York business. Hugo Boss AG dropped -1.4% after it was reported that Permira Advisors LLP, which owns 56% of the company through its Red & Black Holding GmbH company, is in talks with advisors about a potential sale of its remaining stake.

 

US stocks fell giving it the biggest weekly drop in two years, as concerns over Argentina and Portugal overshadowed data that signalled the Federal Reserve may have leeway to keep rates low. The Dow Jones Industrial Average (-0.42%), S&P 500 (-0.29%) and the Nasdaq Composite (-0.39%) all retreated. JPMorgan Chase & Co and Morgan Stanley slumped more than -2.1% as a committee ruled that Argentina’s default will trigger $1 billion of credit default swaps. LinkedIn Corp jumped +12% after projecting revenue that beat forecasts. Procter & Gamble Co increased +3% as profit topped estimates amid cost reductions. Expedia Inc advanced +6.4% for the largest increase in the S&P 500 after reporting second quarter profit that beat estimates. GoPro Inc slumped -15% after reporting a net loss of $19.8 million for the second quarter.

 

Asian stocks swung between gains and losses as investors weighed a smaller than forecast increase in US payrolls and the bailout of a Portuguese bank. The Nikkei 225 (-0.31%) and the S&P/ASX 200 (-0.28%) both declined, while the Hang Seng (+0.24%) increased. Japanese exporters declined. Honda dropped -1.5%, Nintendo Co slid -1.1% and Panasonic Corp fell -1%. Anton Oilfield Services Group slid -4.3% in Hong Kong after the provider of oil drilling services said it expects first half profit to drop. Horizon Oil declined -6.8% after it was reported that Roc Oil will likely terminate its merger agreement with Horizon after Roc’s board unanimously recommended a rival takeover offer from Fosun International Ltd. Fosun, which agreed to buy Roc for $441 million in cash, added +0.6% in Hong Kong.