Morning Spread

Morning Spread

Friday 4th October 2013
IndexLevelChg (%)
UK Market6443.61-0.08
Dow Indust Avg14996.48-0.90
S&P 5001678.66-0.90
Nasdaq Composite3774.34-1.07
Nikkei 22514024.31-0.94
Hang Seng23138.54-0.33
IndexLevelChg (%)
Nymex 1m103.54+0.22
Gold Spot1316.12-0.05
GBP/USD1.6107+0.38
GBP/EUR1.1833-0.27
EUR/USD1.3612-0.09
USD/JPY--

European stocks declined as investors speculated US lawmakers won’t reach an agreement on the federal budget this week. The ESTX 50 (+0.10%) and the CAC 40 (+0.14%) both advanced, while the UK Markets (-0.11%) and the DAX (-0.22%) both declined. Nokian Renkaat slumped -7.2% after saying that operating profit and net sales will fall this year from 2012, this follows an announcement in August that sales and profit could increase in the full year. Hochtief AG retreated -1% as its Australian unit, Leighton Holdings Ltd, extended losses in Sydney trading. The German construction company is heading for its largest weekly decline since June amid allegations of corruption at Leighton. Home Retail advanced +0.8% as UBS raised its rating on the stock to “buy” from “neutral”, citing a greater like for like sales growth rate as its Argos chain adapts to technological changes. Pirelli and Continental slipped -1% and -0.5% respectively.

US stocks tumbled as concern grew that a political impasse in Washington over the budget could lead to a recession. The Dow Jones Industrial Average (-0.90%), S&P 500 (-0.90%) and the NASDAQ Composite (-1.07%) all declined. As a partial government shutdown entered a third day, the Treasury Department warned that a federal default could lead to a recession as bad as the 2008 financial crisis or worse. President Barack Obama urged House Speaker John Boehner to hold a vote on funding federal operations without strings attached, saying the Republican’s refusal to do so is the only thing standing in the way of reopening the government. Gauges of utility, industrial and technology stocks lost at least 1% to lead declines in all 10 of the main industry groups in the S&P 500. Boeing Co, Chevron Corp and DuPont Co fell at least -2% to lead declines in 29 of 30 stocks in the Dow. Eli lilly & Co dropped -3.4% after saying it would be challenging for the company to meet its 2014 sales target. United Technologies Corp retreated -1.2% after saying the shutdown would lead to as many as 5,000 temporary layoffs.

Asian stocks fell as concern grew that the US political impasse could lead to the government defaulting on its debt. The Nikkei 225 (-0.94%), Hang Seng (-0.33%) and the S&P/ASX 200 (-0.51%) all retreated. Blumont Group Ltd, which invests in minerals and energy resources, slumped -56% in Singapore before trading was suspended after it agreed to buy an unnamed overseas coal producer. Digital Garage Inc sank -10% after a Twitter Inc filing failed to mention the Tokyo based company as a shareholder. Universal Robina Corp slipped -4.9% after parent JG Summit Holdings Inc sold shares of the Philippine food and beverage company at a discount. GS Yuasa Corp slipped -2.6% after Mitsubishi UFJ Morgan Stanley Securities lowered its rating to “neutral” from “outperform”.