Morning Spread

Morning Spread

Thursday 5th November 2015
IndexLevelChg (%)
UK Market6380.36-0.51
Dow Indust Avg17867.58-0.28
S&P 5002102.31-0.35
Nasdaq Composite5142.48-0.05
Nikkei 22519116.41+1.00
Hang Seng23051.04-0.01
IndexLevelChg (%)
Nymex 1m46.32-0.01
Gold Spot1108.41+0.05
GBP/USD1.5390-0.13
GBP/EUR1.4171+0.08
EUR/USD1.0860+0.04
USD/JPY121.94-0.30

European shares were mixed despite strong earnings from some companies. The ESTX 50 (-0.15%), UK markets (-0.48%) and the Dax (-0.22%) all posted losses in early trading, while the CAC 40 (+0.11%) was positive. Vestas Wind Systems rose +4.3% after reporting a stronger than expected third quarter operating profit before special items and raising its 2015 profit outlook. Societe Generale also advanced +4% after its third quarter income rose 2.4% as growth at its retail network and lower risk provisions helped offset weakness in investment banking. Adecco fell -8.8% after posting a surprise half billion euro net loss in the third quarter due to a €740 million impairment of goodwill. Credit Agricole SA dropped -4.3% after its net income fell at its corporate and investment bank. Amec Foster Wheeler Plc slumped -20% after saying it will halve dividends amid falling oil prices.

 

US stocks declined, retracing recent gains along with energy shares, while comments by Federal Reserve Chair Janet Yellen pointing to a possible interest rate hike in December added to investor caution. The Dow Jones Industrial Average (-0.28%), S&P 500 (-0.35%) and the Nasdaq Composite (-0.05%) all decreased. Stocks added to losses after comments by Yellen, who told Congress the Fed expects the economy to continue to grow at a pace that returns inflation to policy makers’ target and that if the incoming information supports that expectation, December would be a live possibility for a rate increase. Time Warner dropped -6.6% after saying rating s for its key domestic entertainment networks have dropped more than anticipated. Twenty-First Century Fox Inc dropped -5.2% after it reported lower than expected quarterly revenue. UnitedHealth declined -2.6% after WellCare Health Plans Inc announced that its new Iowa Medicaid contract will be net unprofitable over its three year contract life. WellCare shares dropped -9.1%.

 

Most Asian shares climbed after comments from Janet Yellen boosted the dollar against the yen spurring equity gains in Tokyo, and Chinese shares entered a bull market as state rescue efforts halted a $5 trillion rout. The Nikkei 225 (+1.00%) gained, while the Hang Seng (-0.01%) was flat and the S&P/ASX 200 (-0.94%) declined. Citic Securities Co advanced +7.4% amid speculation of state intervention in financial stocks. Japan Tobacco Inc jumped +6.8% after raising its year-end dividend. Yokogawa Electric Corp surged +6.8% in Tokyo after reporting first half operating profit doubled. SJM Holdings Ltd fell -3.7% in Hong Kong after China Merchants Securities downgraded its rating on the Macau casino operator to “sell”.