Morning Spread

Morning Spread

Thursday 8th January 2015
IndexLevelChg (%)
UK Market6503.84+1.31
Dow Indust Avg17584.52+1.23
S&P 5002025.90+1.16
Nasdaq Composite4650.47+1.26
Nikkei 22517167.10+1.67
Hang Seng23835.53+0.65
IndexLevelChg (%)
Nymex 1m48.68+0.06
Gold Spot1207.56-0.32
GBP/USD1.5049+0.26
GBP/EUR1.2773+0.15
EUR/USD1.1782-0.40
USD/JPY119.77-0.23

European shares rose, tracking gains in the United States and Asia, as retail stocks rallied and amid optimism monetary policies by the ECB and Federal Reserve will support the economy. The ESTX 50 (+1.49%), UK markets (+1.13%), CAC 40 (+1.68%) and the Dax (+1.19%) all posted gains in early trading. Tesco surged +7.4% after posting Christmas sales that beat estimates and said it’s cutting prices on hundreds of branded products. Pernod Ricard SA added +3% after Bank of America Corp raised its recommendation on the company to “buy” from “sell”, citing trends in China, the recovery in the US and momentum in India. Marks & Spencer Group Plc dropped -3.2% after saying same store sales at a division that includes its apparel business dropped 5.8% in the third quarter, missing analysts’ estimates. SAP SE declined -2% after UBS Group AG downgraded the company to “hold” from “buy” and said margin expansion in the last decade has not come from productivity and that a customer survey suggests weak demand growth for 2015

 

US stocks rebounded after strong private sector jobs data and as minutes from the most recent Federal Reserve meeting reassured investors there was no hurry to start raising interest rates. The Dow Jones Industrial Average (+1.23%), S&P 500 (+1.16%) and the Nasdaq Composite (+1.26%) all advanced. Exxon Mobil Corp rose +1% as oil prices bounced back. J.C.Penney surged +20.3% after saying same stores sales rose 3.7% in November and December. Dicks Sporting Goods Inc jumped +11.7% after it was reported that the company is holding early stage conversations with a handful of buyout firms about going private. D.R.Horton rose +5.1% after Bloomberg reported that Barack Obama was set to announce a reduction of Federal Housing Administration mortgage insurance premiums.

 

Asian stocks rose following a rebound in US equities. The Nikkei 225 (+1.67%), Hang Seng (+0.65%) and the S&P/ASX 200 (+0.52%) all advanced. Toyota Motor Corp, which gets about 31% of sales from North America, advanced +2% in Tokyo to pace gains among exporters as the yen fell. China Longyuan Power Group Corp jumped +6.8% in Hong Kong after a report the government cut tariffs on wind power. PetroChina Co gained +2.5% after oil prices climbed from their lowest since April 2009. SK Hynix Inc added +5.4% in Seoul on speculation it will benefit from slower output at competitor Micron Technology Inc. Among the most actively traded stocks in Hong Kong were Unity Investment Holdings Ltd, down -15.4%, Bank of China, down -0.5% and Heng Fai Enterprises Ltd, down -40%.