Morning Spread

Morning Spread

Monday 21st July 2014
IndexLevelChg (%)
UK Market6725.51-0.36
Dow Indust Avg17100.18+0.73
S&P 5001978.22+1.03
Nasdaq Composite4432.15+1.57
Nikkei 22515215.71+1.01
Hang Seng23387.14-0.29
IndexLevelChg (%)
Nymex 1m102.90-0.22
Gold Spot1314.76+0.28
GBP/USD1.7074-0.08
GBP/EUR1.2624+0.08
EUR/USD1.3525+0.01
USD/JPY101.26+0.07

US equities recovered losses on Friday as investors digested the possible ramifications of the Malaysian MH-17 tragedy. Strong performing sectors included Healthcare up 1.6%, Technology was up 1.3% and Financials gained nearly 1.1%. Google was up nearly 4% after the technology giant released results that beat expectations. The company outlined new plans to boost user traffic across mobile, video and web services. Airlines recovered losses with American Airlines and Spirit Airlines both gaining more than 2%. Other risers included Boeing up 1.4%, Abercrombie & Fitch was up 2.6% and Facebook was up 3%. There were few decliners with only the Energy sector seeing some weakness, Transocean lost 1.1% and Schlumberger dropped 2%.

In Asia, markets were quiet with Japan closed for a holiday. Other markets were weaker by around 0.2%, although China was overshadowed by news that another corporate bond may suffer a default. The Huatong Road & Bridge Group saw the yield on it’s paper surge to 27%. In Hong Kong, casino stocks were in favour with MGM China up nearly 5%, Galaxy up nearly 3% and Sands China rose by a similar amount. Auto stocks in China were weak once again with Dongfeng Motor losing just over 4%. In Australia, uranium stocks were boosted by sales possibly opening up soon to India, with Paladin up 4% and Energy Resources up 3.3%.

Europe has turned weaker in early trading with focus in the UK on the supermarket giant, Tesco. The company has announced the departure of the CEO, Philip Clarke, who has struggled to fill the boots of his predecessor, Sir Terry Leahy. Dave Lewis from Unilever will be appointed and the shares are 2% higher despite another warning on sales. Fallers in Continental Europe include Deutsche Bank down 1.8%, BASF down 1.5% and Daimler down 2%. In Portugal, Espirito Santo is unchanged despite news that the major holding company cannot pay creditors and advisers have been appointed to boost the Bank’s troubled balance sheet.