Morning Spread

Morning Spread

Tuesday 5th May 2015
IndexLevelChg (%)
UK Market7041.60+0.80
Dow Indust Avg18070.40+0.26
S&P 5002114.49+0.29
Nasdaq Composite5016.93+0.23
Nikkei 22519531.63+0.06
Hang Seng27755.54-1.31
IndexLevelChg (%)
Nymex 1m58.81-0.20
Gold Spot1188.60+0.02
GBP/USD1.5124-0.01
GBP/EUR1.3656+0.75
EUR/USD1.1076-0.74
USD/JPY120.26-0.09

European markets were mixed as several company reported results. The ESTX 50 (-0.24%), CAC 40 (-0.08%) and the Dax (-0.21%) all posted small drops this morning, while the UK markets (+0.50%) were up. UBS rose +4.7% after saying net income in the first three months of the year almost doubled. Adidas added +1.8% after reporting first quarter earnings that topped forecasts. Infineon Technologies AG advanced +2.5% after reporting better than estimated quarterly sales. Diageo Plc added +1.2% after saying potential acquirers have expressed interest in its wine business. BP Plc and Royal Dutch Shell Plc climbed more than +1%. TUI AG advanced +3.3%, which was the biggest increase in the UK markets. Aberdeen Asset management Plc slid -2.3% after saying clients withdrew more money from its funds. Glencore Plc fell -1.1% as it reported that copper production declined in the first quarter.

 

Asian stocks retreated and the Australian dollar dropped after the central bank cut interest rates for the second time in four months as the region’s growth falters in the face of slowing demand from China. The Nikkei 225 (+0.06%) and the S&P/ASX 200 (-0.02%) were fairly flat, while the Hang Seng (-1.64%) dropped. Australia & New Zealand Banking Group Ltd jumped +3.8% in Sydney after posting a record first half cash profit. Fortescue Metals Group Ltd rose +3.1% in Sydney after Vale SA signalled that it may be willing to moderate supply growth amid a glut in iron ore. Alibaba Pictures Group Ltd declined -7.3% in Hong Kong after actress Zhao Wei and her husband sold shares in the company. China Oilfield Services Ltd and Offshore Oil Engineering Co jumped more than +7% on industry reform speculation. Poly Real Estate Group Co slumped -7.8%.

 

US stocks rose as corporate earnings came in better than anticipated. The Dow Jones Industrial Average (+0.26%), S&P 500 (+0.29%) and the Nasdaq Composite (+0.23%) all increased. With three quarters of corporate earnings reports in, investors are now trying to guess when the US Federal Reserve will begin raising interest rates. An April payroll report due on Friday could provide a hint. Mondays’ rally in utilities suggested some investors believe the Fed will not raise rates soon and may be looking for yield. Berkshire Hathaway Inc rose +1.6%, giving the biggest boost to the S&P 500 after reporting results that beat forecasts. Cognizant surged +6.2% after reporting better than expected rise in revenue and raised its full year forecast. McDonald’s Corp closed -1.7% lower after its plan to modernise the company failed to impress investors.