Morning Spread

Morning Spread

Thursday 7th November 2013
IndexLevelChg (%)
UK Market6727.24-0.21
Dow Indust Avg15746.88+0.82
S&P 5001770.49+0.43
Nasdaq Composite3931.95-0.20
Nikkei 22514228.44-0.76
Hang Seng22881.03-0.68
IndexLevelChg (%)
Nymex 1m94.78-0.02
Gold Spot1316.28-0.12
GBP/USD1.6073+0.09
GBP/EUR1.1889-0.05
EUR/USD1.3518-0.06
USD/JPY

European stocks declined as investors awaited the ECB’s interest rate decision. The ESTX 50 (-0.47%), UK Markets (-0.19%), CAC 40 (-0.22%) and the DAX (-0.12%) all posted losses in early trading. Siemens AG gained +2.2% after reporting profit that beat analysts’ estimates and saying it plans to buy back shares. Swiss Re Ltd climbed +2.7% after third quarter net income exceeded analysts’ projections. Bureau Veritas SA lost -4.6% after posting third quarter sales that missed estimates. Commerzbank AG climbed +8% after saying third quarter net income rose to €77 million, beating the average analyst estimate of €32 million. ArcelorMittal advanced +4.4% after reporting earnings that surpassed the average analyst estimate. Deutsche Telekom AG dropped -1% despite posting third quarter earnings that beat the average analyst prediction. Schroders Plc lost -3.8% after Canaccord Genuity Ltd cut its rating on the asset manager after it reported third quarter results. Randgold Resources ltd rallied +7.3% after reporting quarterly profit that beat analysts’ estimates. Tate & Lyle Plc added +1% posting better than projected first half revenue.

US stocks advanced as Federal Reserve officials said economic weakness warrants continued stimulus and investors await data this week on jobs and growth. The Dow Jones Industrial Average (+0.82%) and the S&P 500 (+0.43%) both advanced, while the NASDAQ Composite (-0.20%) declined. Microsoft Corp climbed +4.2% as Nomura Holdings Inc said the company may exit its money losing consumer business under a new CEO. Ralph Lauren Corp rallied +5.5% after boosting the lower end of its sales forecast and increased its dividends. Tesla Motors Inc tumbled -15% as its vehicle sales missed some analysts’ estimates. Ensco Plc jumped +4.4% after boosting its quarterly dividend by 50%. Abercrombie & Fitch slumped -14% for the biggest drop in the S&P 500 as sales trailed analysts’ estimates. Chesapeake Energy Corp dropped -6.8% after the company’s forecast implied a decline in oil production during the fourth quarter from the previous three months, raising concern over its ability to deliver growth next year.

Asian stocks fell as investors await economic data from the US and amid concern gains in equities over the past two months have outpaced prospects for earnings. The Nikkei 225 (-0.76%), Hang Seng (-0.68%) and the S&P/ASX 200 (-0.22%) all retreated. Toyota Motor Corp lost -1.3% in Tokyo after its net income forecast fell short of analyst estimates. Ausdrill Ltd slumped -29% in Sydney after the drilling contractor said it expects lower profit in the fiscal year 2014. JPMorgan also cut the stocks rating to “neutral” from “overweight”. Fosun International Ltd slumped -7.6% in Hong Kong after announcing plans to sell HK$3.88 billion of convertible bonds with an initial conversion price of HK$10 a share. Lenovo Group Ltd gained +2.1% in Hong Kong after posting profit that beat analyst estimates. GungHo Online Entertainment Inc gained +2.5% as Japan Exchange Group and Nikkei Inc said the Internet game maker will be included in their new index.