Morning Spread

Morning Spread

Tuesday 5th August 2014
IndexLevelChg (%)
UK Market6708.43+0.46
Dow Indust Avg16569.28+0.46
S&P 5001938.99+0.72
Nasdaq Composite4383.89+0.72
Nikkei 22515320.31-1.00
Hang Seng24648.26+0.20
IndexLevelChg (%)
Nymex 1m98.56+0.27
Gold Spot1292.80+0.35
GBP/USD1.6884-0.21
GBP/EUR1.2606+0.38
EUR/USD1.3394-0.17
USD/JPY102.58-0.09

European stocks rose as several companies reported better than expected quarterly profit. The ESTX 50 (+0.79%), UK markets (+0.45%), CAC 40 (+0.79%) and the Dax (+0.84%) all posted gains in early trading. BMW advanced +3% after posting second quarter earnings that beat estimates as it sold more X5 sport utility cars and added deliveries in China. Deutsche Post gained +2.2% after reporting second quarter earnings that surpassed the projection of analysts in a Bloomberg survey. Credit Agricole gained +5% after posting second quarter operating profit that exceeded the average analyst estimate. Telefonica slipped +1.8% after saying it has offered to buy Vivendi’s Brazilian Internet provider unit, GVT. Bilfinger SE plummeted -10% after the German builder forecast full year adjusted net income of €200 million to €220 million, €25 million less than expected.

 

US stocks rose as Portugal announced a bailout for Banco Espirito Santo SA and Berkshire Hathaway Inc beat earnings estimates. The Dow Jones Industrial Average (+0.46%), S&P 500 (+0.72%) and the Nasdaq Composite (+0.72%) all advanced. Berkshire Hathaway rose +3.1% as a rebounding US economy has boosted the value of Berkshire’s stock portfolio and helped propel growth at the dozens of companies that Buffett acquired during his four decade tenure as chairman and CEO. VeriSign Inc climbed +2.5% as Buffett raised his stake in the company to 10.4% from 8.2%. Energy companies soared after Colorado Governor John Hickenlooper said at a news conference that he wants anti-fracking initiatives removed from a voting ballot. Anadarko climbed +4.8% and Noble Energy increased +5.2% for the biggest gains in the S&P 500. Michael Kors Holdings Ltd fell -5.9%, the most in the S&P 500, after the company said profitability will decline this year.

 

Asian stocks fell after a private gauge of China’s services industries declined to record a low and as investors weighed company earnings. The Nikkei (-1.00%) and S&P/ASX 200 (-0.405) both declined, while the Hang Seng (+0.18%) was slightly up. Greentown China Holdings Ltd plunged -13% in Hong Kong after the developer said first half profit may drop. Crown Resorts fell -3.9% in Sydney after its rating was lowered to “underperform” from “neutral” at Credit Suisse. Isuzu Motors rose +3.2% in Tokyo after saying its first quarter net income was 21.4 billion yen, beat the mean analysts’ estimate of 19.3 billion yen. Cochlear Ltd jumped +10% in Sydney after reporting full year profit that beat estimates. WH Group Ltd rose +6.5% on its trading debut in Hong Kong, in its second attempt at an initial public shares sale.