Morning Spread

Morning Spread

Tuesday 8th April 2014
IndexLevelChg (%)
UK Market6605.97-0.25%
Dow Indust Avg16245.87-1.02
S&P 5001845.04-1.08
Nasdaq Composite4079.75-1.16
Nikkei 22514606.88-1.36
Hang Seng22604.50+1.01
IndexLevelChg (%)
Nymex 1m101.27+0.83
Gold Spot1309.89+0.97
GBP/USD1.6644+0.23
GBP/EUR1.2092-0.04
EUR/USD1.3764+0.18
USD/JPY102.73-0.39

US markets were weak on Monday as investors took further money out of the Technology sector, on fears that valuation levels were now excessive. The NASDAQ has now dropped 4.3% over the last three days and it will be interesting to see the direction set in the upcoming quarterly earnings season. Financials were weak with Invesco down 2.86%, American Express down 2.88% and Bank of America lost 2%. In the Technology sector, Apple fell nearly 1.6%, Amazon declined by a similar amount and Oracle was down nearly 1.3%. On the positive front, Newmont Mining gained 1.37%, Campbell Soup was up 1.13% and PepsiCo was up 1.6%.

In Asia there were mixed performances with the Chinese indices climbing to six week highs on investor optimism that the authorities would undertake fresh initiatives to boost economic growth. One of the biggest gainers was Great Wall Motors which climbed nearly 7% on strong car sales data. There was also evidence of investors rotating into the large, dividend paying companies away from small companies. Industrial Bank of China was up 2.5% and CNOOC also rose nearly 2.5%. In Australia, there was a boost for Australian Agricultural which rose 4.5% on news that tariffs would be lowered on beef exports to Japan. In Japan, stocks were held back by the strengthening Yen and news of a law case going against the company saw Takeda Pharmaceutical fall by over 5%.

European markets are muted in early trading with decliners including AXA down 1.5%, ING down 1.1% and Telecom Italia down 1.5%. With little corporate news, investors were monitoring the developing situation in Ukraine. Nokia is a positive mover with the stock up 2.7% on news that China has approved the Microsoft deal. Nestle shares are up over 1% as investors focus on next week’s Q1 earnings, they are likely to show a 4% organic growth in revenues. In London, Sports Direct shares are down 6.5% after the founder, Mike Ashley, sold 24 million shares.