Morning Spread

Morning Spread

Wednesday 5th November 2014
IndexLevelChg (%)
UK Market6497.65+0.68
Dow Indust Avg17383.84+0.10
S&P 5002012.10-0.28
Nasdaq Composite4623.64-0.33
Nikkei 22516937.32+0.44
Hang Seng23695.62-0.63
IndexLevelChg (%)
Nymex 1m76.79-0.52
Gold Spot1146.40-1.88
GBP/USD1.5893+0.62
GBP/EUR1.2725-0.18
EUR/USD1.2489-0.45
USD/JPY114.47-0.83

European stocks advanced this morning as better than estimated earnings offset investor concern about the health of the region’s economy. The ESTX 50 (+1.03%), UK markets (+0.56%), CAC 40 (+0.91%) and the Dax (+1.06%) all posted gains in early trading. Natixis advanced +2.3% after higher revenue from asset management and insurance helped third quarter net income rise 10%. M&S climbed +8.2% after saying first half profit rose to £268 million, exceeding the average analyst estimate of £253 million. Hannover Re rose +1.3% after saying third quarter profit exceeded the average analyst estimate. The company also confirmed its full year profit target and said net income will climb next year. ING Groep NV added +2.1% after saying it will make the final repayment of state aid on Friday, ending a six year bailout. Lafarge SA gained +1.1% after saying it will slow asset sales in the fourth quarter. Meggitt Plc jumped +6.64% after saying it will begin a share buyback.

 

Most US stocks fell as energy companies slumped after oil reached a three year low and several forecasts disappointed. The Dow Jones Industrial Average (+0.10%) gained, while the S&P 500 (-0.28%) and the Nasdaq Composite (-0.33%) both declined. Exxon Mobil slid -0.8% and Chevron fell -1.2% paced losses in energy shares as oil sank to as low as $75.84 a barrel in New York. Sprint plunged -16% after lowering its forecast for earnings for this year, citing the ongoing loss of customers. Priceline slipped -8.4% after forecasting fourth quarter revenue less than analysts’ estimates as customers cut back on travel plans and a stronger dollar curbs growth. Michael Kors Holdings Ltd fell -8.4% after same store sales missed estimates, raising concern that one of fashion’s biggest growth stories is losing momentum. Delta Air Lines climbed +4.2%, while United Continental Holdings Inc and American Airlines Group Inc gained more than +1.6% as the slump in crude oil boosted their earnings prospects.

 

Asian stocks fell as energy shares retreated after oil extended a three year low, while equities in Tokyo advanced as the yen declined on US elections. The Hang Seng (-0.63%) and the S&P/ASX 200 (-0.04%) both retreated, while the Nikkei 225 (+0.44%) increased. SoftBank Corp fell -2.3% after forecasting its first drop in operating profit. PetroChina Co sank -2.5% and China Petroleum & Chemical Corp fell -1.5% in Hong Kong as the price of oil dropped. Japanese exporters rose as the yen declined. Honda, a company that gets most of its sales outside Japan, added +2.4%, Canon Inc, a company that gets 81% of its revenue abroad, gained +1.7%. Cyberdyne Inc soared +7.6% after the price target of the company was raised at Nomura Holdings Inc. Fuji Oil Co sank -3.3% after projecting an 800 million yen loss for the first half, missing its previous forecast of a 2.1 billion yen profit.