Morning Spread

Morning Spread

Monday 6th October 2014
IndexLevelChg (%)
UK Market6547.20+0.30
Dow Indust Avg17009.69+1.24
S&P 5001967.90+1.12
Nasdaq Composite4475.62+1.03
Nikkei 22515890.95+1.16
Hang Seng23315.04+1.09
IndexLevelChg (%)
Nymex 1m90.13+0.43
Gold Spot1193.25+0.16
GBP/USD1.5981-0.05
GBP/EUR1.2743-0.14
EUR/USD1.2541+0.20
USD/JPY109.42+0.31

European stocks rose as investors speculated weaker economic reports will bolster the case for more central-bank stimulus. The ESTX 50 (+1.03%), UK markets (+0.47%), CAC 40 (+0.73%) and the Dax (+1.38%) all posted gains in early trading. Erste advanced +1.9% after Goldman Sachs raised its rating on the bank to “buy” from “neutral”. Aer Lingus climbed +1.8% after saying traffic rose +5.3% last month. Norwegian Air Shuttle ASA lost -6.4% after saying it expects a loss due to hedging positions. The company also said it carried 16% more passengers in September than in the same month last year. Barclays Plc climbed +1.5% after the Sunday Times reported that the bank will cut 1,300 jobs and increase the automation of branches. Tesco added +1.8% after strengthening independent oversight of its operations by appointing new directors. WM Morrison Supermarkets Plc and J Sainsbury Plc also gained more than +1% each.

 

US stocks rallied as a better than forecast payrolls report and expansion in service industries boosted confidence in the world’s largest economy. The Dow Jones Industrial Average (+1.24%), S&P 500 (+1.12%) and the Nasdaq Composite (+1.03%) all advanced. Mylan Inc increased +8% after forecasting earnings that surpassed analysts’ projections. Covidien Plc jumped +5.7% after Medtronic Inc said it intends to use about $16 billion in external financing to buy Covidien, reaffirming its commitment to complete the acquisition of the company. Medtronic climbed +3.5%. Airline stocks climbed as Brent Crude fell for a fourth day. United Continental Holdings Inc advanced +4.7% and American Airlines Group Inc increased +6.8%. JetBlue Airways Corp jumped +5.1% after Raymond James raised the company to “market perform” and Deutsche Bank added the stock to a short term buy list. Cliffs Natural Resources Inc lost -17% after Nomura Holdings Inc cut its rating on the stock to “reduce” from “buy”.

 

Asian stocks rose as a better than forecast US payrolls report boosted confidence in the US economy and weakened the yen. The Nikkei 225 (+1.16%) and the Hang Seng (+1.10%) both increased, while the S&P/ASX 200 (-0.48%) decreased. Japanese exporters advanced. Toyota, which gets about 30% of its sales from North America, gained +1.5%. Honda Motor Co, which gets about 80% of its revenue abroad, rose +1.9%. Sony Corp, which gets about 70% of its sales outside Japan, added +2.2%. Fujifilm Holdings Corp, jumped +2.8% after a French Ebola patient recovered following being given its Avigan drug with another experimental treatment. Inpex Corp slid -2.6% as West Texas Intermediate crude declined 24 cents in New York.