Morning Spread

Morning Spread

Monday 4th November 2013
IndexLevelChg (%)
UK Market6769.52+0.53
Dow Indust Avg15615.55+0.45
S&P 5001761.64+0.29
Nasdaq Composite3922.04+0.06
Nikkei 22514201.57-0.88
Hang Seng23189.62-0.26
IndexLevelChg (%)
Nymex 1m94.84+0.24
Gold Spot1315.24-0.08
GBP/USD1.5949+0.16
GBP/EUR1.1805-0.06
EUR/USD1.3510+0.11
USD/JPY

US equities rebounded on Friday as investors believed that corporate earnings were sufficiently strong to cope with any tapering the Federal Reserve introduces in the coming months. Of the 368 companies in the S&P 500 to thus far report third quarter earnings, 75% of them have exceeded analyst expectations. Boeing achieved an all time high close with the shares up nearly 2%. Retailer, JC Penney was also positive with the shares up over 8% on positive sales momentum. In the Energy sector there was some weakness with Chevron down 1.6% after reporting a sharp drop in refining profits. Other decliners included Toll Brothers down 1.25%, Dow Chemical was down just over 1.30% and Amazon fell 1.38%. Amongst the gainers, Amgen was up 2.19%, Fedex Corporation climbed nearly 3% and Ultra Petroleum was up 2.56% on higher natural gas prices.

Asia saw low trading volumes with Japan closed for a public holiday. Australian resource stocks were boosted by Chinese import data and Atlas Iron was up 5.4% and Fortescue gained just over 3%. However the Gold sector remained weak with Alacer Gold down 5.3% and Perseus lost 7.2%. In Taiwan, PowerTech fell nearly 7% after a broker downgrade citing pricing pressure within the DRAM sector, negatively hit sentiment. Other bourses were generally weaker with South Korean stocks such as Hyundai down 2.4% and Shinhan Financial dropped 3.5%. Hong Kong drifted off with HSBC down 0.35%, China Mobile down 0.56% and Petrochina lost 0.34%.

Europe is higher to start the week, although the budget airline Ryanair is a major faller after issuing a profit warning. The shares are currently down 11.5% in Ireland after revealing fares were being reduced and costs needed to be reduced quicker. As a result, Easyjet is down 4.5% and International Consolidated Airlines is down 2%. Gainers include EDF France up 2.24%, Lafarge up 2.02% and Bayer is up 1.59%. Other decliners include the Banks with UBS some 4% lower and Credit Suisse is down 3.8%. In the UK, Weir Group is down 7.71% after reporting results, with FX weakness impacting on profits. Gainers include GlaxoSmithKline up 1.33%, Rio Tinto is up 1.38% and Royal Mail is up 2.09%.