Morning Spread

Morning Spread

Thursday 7th May 2015
IndexLevelChg (%)
UK Market6874.03-0.86
Dow Indust Avg17841.98-0.48
S&P 5002080.15-0.45
Nasdaq Composite4919.65-0.40
Nikkei 22519291.99-1.23
Hang Seng27289.97-1.27
IndexLevelChg (%)
Nymex 1m60.97+0.07
Gold Spot1183.21-0.76
GBP/USD1.5202+0.20
GBP/EUR1.3390-0.46
EUR/USD1.1352+0.26
USD/JPY119.44+0.14

European stocks fell as voting began in the UK general election. The ESTX 50 (-0.76%), UK markets (-0.84%), CAC 40 (-0.73%) and the Dax (-0.35%) all posted losses in early trading. Siemens AG slipped -2% after reporting worse than forecast profit and said it will cut another 4,500 jobs. Adecco SA retreated -4.5% after saying its CEO and CFO will leave. Alcatel-Lucent SA gained +3.4% and BT Group Plc added +1.3% after both companies reported an increase in earnings. Gamesa Corp Tecnologica SA advanced +2.3% after saying first quarter profit more than tripled from a year earlier. Telecity Group Plc soared +23% after Equinix Inc made a £2.3 billion takeover approach for the company.

 

US stocks retreated after US Federal Reserve Chair Janet Yellen warned of high valuations, adding to anxiety about future interest rates and a global bond rout. The Dow Jones Industrial Average (-0.48%), S&P 500 (-0.45%) and the Nasdaq Composite (-0.40%) all decreased. Yellen’s comments worried investors already nervous about stock prices. The S&P 500 currently trades at 17 times forward earnings, higher than its 10 year median of 15. Apple was the biggest drag on the S&P 500, down -0.63%. MoneyGram ended up +21.41% after Western Union said it was not in talks to buy the company. Western Union gained +4.29%.

 

Asian stocks fell, following declines in US equities and as shares resumed trading in Tokyo after a three day holiday. The Nikkei 225 (-1.23%), Hang Seng (-1.29%) and the S&P/ASX 200 (-0.82%) all retreated. Nissan Motor Co, which gets about 78% of revenue abroad, slumped -1.6% as weak US economic data sent the yen higher. Benesse Holdings Inc plunged -18% after forecasting a wider loss than anticipated. Dai-ichi Life Insurance Co added +3.6% after its preliminary earnings report showed stronger than expected profit. China Railway Group Ltd and Huadian Power International Corp dropped at least -9%. PetroChina Co lost -3% ahead of tomorrow’s trade data release.