Morning Spread

Morning Spread

Tuesday 4th August 2015
IndexLevelChg (%)
UK Market6702.91+0.21
Dow Indust Avg17598.20-0.52
S&P 5002098.04-0.28
Nasdaq Composite5115.38-0.25
Nikkei 22520520.36-0.14
Hang Seng24406.12-0.02
IndexLevelChg (%)
Nymex 1m45.85+1.51
Gold Spot1091.10+0.40
GBP/USD1.5594-0.03
GBP/EUR1.4216-0.06
EUR/USD1.0971+0.10
USD/JPY123.98-0.09

European stocks retreated as energy stocks dropped and investors weighed earnings reports. The ESTX 50 (-0.60%), CAC 40 (-0.50%), DAX (-0.12%) and the UK markets (-0.10%) all posted losses in early trading. Credit Agricole slumped -8% after it booked an additional €350 million in litigation provisions while posting second quarter results. BMW also fell -2.7% after its second quarter operating profit eased 3% on slowing China sales, leading the company to caution that while it still expects new records for sales in the full year, earnings momentum was slowing. Royal Bank of Scotland Group Plc slipped -0.8% after the UK government sold a 5.4% in the bank at a discount to yesterday’s closing price.

 

US stocks declined as tumbling oil prices dragged energy shares to a three year low and factory data from China added to concerns about weakening growth in the world’s second largest economy. The Dow Jones Industrial Average (-0.52%), S&P 500 (-0.28%) and the Nasdaq Composite (-0.25%) all declined. Consol Energy Inc plummeted -7.6%, while Noble Energy Inc and Chesapeake Energy Corp dropped more than -4.2%. West Texas Intermediate crude reached its lowest since March. Alpha Natural Resources Inc plunged -24% to a record low after filing for bankruptcy, becoming the latest victim of the coal industry’s worst downturn in decades. Tyson Foods Inc tumbled -10% after cutting its earnings forecast. Frontier Communications jumped +9.1% after raising its cash flow and capital spending outlooks. Apple fell -2.4%.

 

Asian shares were mixed as focus turned to a key US employment report that could give valuable pointers to the timing of the Federal Reserve’s planned interest rate increase. The Nikkei 225 (-0.14%) and the Hang Seng (-0.16%) both decreased, while the S&P/ASX 200 (+0.33%) increased. Maruha Nichiro Corp tumbled -7.4% after reporting a 44% drop in net income. Kansai Electric Power Co added +3.4%. Nippon Soda Co surged +6% after boosting its profit forecast. China Southern Airlines Co and China Eastern Airlines Corp jumped by the 10% daily limit as oil prices held near a six month low.