Morning Spread

Morning Spread

Tuesday 5th November 2013
IndexLevelChg (%)
UK Market6723.74-0.59
Dow Indust Avg15639.12+0.15
S&P 5001767.93+0.36
Nasdaq Composite3936.59+0.37
Nikkei 22514225.37+0.17
Hang Seng23038.95-0.65
IndexLevelChg (%)
Nymex 1m94.47-0.16
Gold Spot1312.20-0.16
GBP/USD1.6050-0.62
GBP/EUR1.1890+0.71
EUR/USD1.3496-0.11
USD/JPY

European stocks were slightly negative this morning as investors awaited economic forecasts from the European Union. The ESTX 50 (-0.26%), UK Markets (-0.12%), CAC 40 (-0.14%) and the DAX (-0.10%) all posted losses in early trading. Beiersdorf AG climbed +4% after raising its full year sales forecast. Novartis
AG increased +1.3% after it was reported that it has identified its animal-health business as a top candidate for a sale. BMW dropped -4.2% after saying quarterly profit at its auto unit fell more than expected, hurt by the cost of new technology and price discounts in core European Markets. Siemens AG lost -0.9% after UBS AG cut its rating on Europe’s largest engineering company. The biggest gainers in the UK this morning were Kazakhmys Plc (+4.03%), Marks & Spencer Group Plc (+3.32%) and Imperial Tobacco Group Plc (+2.94%). While the biggest drags were RSA Insurance Group Plc (-7.36%), Royal Bank of Scotland Group (-3.44%) and Associated British Foods Plc (-3.04%).

Asian stocks swung between gains and losses ahead of a meeting of China’s top party officials this weekend. The Nikkei 225 (+0.17%) and the S&P/ASX 200 (+0.77%) both gained, while the Hang Seng (-0.65%) declined. Nissan Motor Co sank -10% at a time when the weaker yen is supposed to be bolstering Japanese exporters’ earnings, after cutting its full year net income forecast by 15% as demand in emerging markets slowed and recall costs mounted. Kubota Corp rose +7.9% after reporting profit that topped estimates. HSBC Holdings Plc added +1.7% in Hong Kong after third quarter pre-tax profit increased 30%. Chinese lenders listed in Hong Kong fell. Industrial & Commercial Bank of China Ltd lost -1% and China Construction Bank Corp declined -1%. Doosan Infracore Co declined -8.3% in Seoul after a report of a possible $400 million depository receipt sale sparked concern shareholdings would be diluted.

US stocks rose as Exxon Mobil Corp and US Steel Corp led a commodity rally while investors awaited data on employment and economic growth. The Dow Jones Industrial Average (+0.15%), S&P 500 (+0.36%) and the NASDAQ Composite (+0.37%) all advanced. Exxon Mobil increased +2.5% for the biggest gain in the Dow. US Steel climbed +4.4% and AK Steel Holding Corp rallied +8.7% after both stocks were raised to “buy” from “sell” at Goldman Sachs, citing that they expect US steel demand to head to a solid sustainable recovery over the coming years, and boosted the rating on the US steel industry to “neutral” from “cautious”. Coal stocks advanced amid an improved outlook for the steel industry. Alpha Natural Resources Inc jumped +9.4% and Consol Energy Inc advanced +3.1%. Vulcan Materials Co rallied +7.7% after reporting third quarter sales that beat the average analyst estimate by the biggest margin in more than a year. Alcoa Inc jumped +7%. BlackBerry Ltd tumbled -16% as Fairfax Financial Holdings Ltd walked away from a $4.7 billion takeover plan.