Morning Spread

Morning Spread

Friday 4th July 2014
IndexLevelChg (%)
UK Market6863.17-0.03
Dow Indust Avg17068.26+0.54
S&P 5001985.44+0.55
Nasdaq Composite4485.93+0.63
Nikkei 22515437.13+0.58
Hang Seng23540.65+0.04
IndexLevelChg (%)
Nymex 1m104.08+0.02
Gold Spot1322.10+0.20
GBP/USD1.7153-0.02
GBP/EUR1.2623+0.13
EUR/USD1.3588-0.11
USD/JPY0.0098-0.18

European stocks declined as investors weighed valuations. The ESTX 50 (-0.24%), UK markets (-0.10%), CAC 40 (-0.16%) and the Dax (-0.06%) all posted losses in early trading. Erste slipped -12% after forecasting a 2014 net loss of as much as €1.6 billion because of bad debt charges and writedowns in Hungary and Romania. The Austrian bank that earns most of its income in Eastern Europe predicted loan-loss provisions will rise to €2.4 billion this year, 40% more than previously estimated. EasyJet added +2.7% after saying it transported about 6.1 million passengers in June, compared with 5.54 million a year earlier. JC Decaux rose +5.1% after HSBC upgraded the shares to “neutral” from “underweight”, citing an attractive valuation after a recent drop. BT Group Plc increased +0.98% after agreeing an insurance and reinsurance deal to protect its pension scheme against the costs associated with increases in life expectancy.

 

US stocks climbed as data showed employers added more workers than projected in June and the ECB disclosed details of its stimulus plans. The Dow Jones Industrial Average (+0.54%), S&P 500 (+0.55%) and the Nasdaq Composite (+0.63%) all advanced. Life insurers like Lincoln National Corp and MetLife benefit from climbing bond yields, which allow them to invest clients’ premiums and maturing securities at higher interest rates. MetLife added +2% and Lincoln National increased +2.1%. Goldman Sachs added +1.5% for the biggest advance in the Dow. Lorillard Inc climbed +5.3% after CNBC reported that the company may be taken over by Reynolds American Inc. Lululemon rose +2.9% after the Wall Street Journal reported that advisors to founder Chip Wilson have been talking to private equity firms about taking the company private. Cree Inc added +5% after being raised to “outperform” from “market perform” at Oppenheimer & Co.

 

Asian stocks rose after US unemployment slid to the lowest level since before the peak of the financial crisis. The Nikkei 225 (+0.58%) and the S&P/ASX 200 (+0.61%) both gained, while the Hang Seng (-0.02%) was flat. Companies that do business in the US rose. Mazda Motor gained +1.2% in Tokyo. Techtronic Industries Co, a company that gets 73% of its sales in North America, added +1.2% in Hong Kong. Semiconductor Manufacturing International jumped +8.7% after announcing it will work with Qualcomm to make its Snapdragon processors. Seven & I Holdings added +2% after first quarter operating profit rose +5.1% from a year earlier. HTC Corp jumped +1.1% in Taipei after returning to profit as the release of its marquee M* smartphone and a cut in marketing costs helped stem the effects of a continued decline in sales.