Morning Spread

Morning Spread

Thursday 17th July 2014
IndexLevelChg (%)
UK Market6767.52-0.25
Dow Indust Avg17138.20+0.45
S&P 5001981.57+0.42
Nasdaq Composite4425.97+0.22
Nikkei 22515370.26-0.06
Hang Seng23495.72-0.11
IndexLevelChg (%)
Nymex 1m101.94+0.74
Gold Spot1307.04+0.60
GBP/USD1.7119-0.08
GBP/EUR1.2651+0.12
EUR/USD1.3532+0.03
USD/JPY101.51+0.19

US equities were in positive territory on Wednesday, with the Dow Jones Industrial Average closing at an all time high. Focus in recent days has been on the earnings season and today alone there are 14 S&P 500 companies reporting. Intel was a strong gainer yesterday, rising nearly 10% on improvement in the PC market and also a larger share buy back programme. Time Warner gained 17% after confirming it had received an initial takeover offer from Twenty First Century Fox. IBM was up 2% as investors further digested the tie up with Apple. General Electric rallied 1.5% after the conglomerate announced it was in talks to sell the household appliances business.

Asia was quiet in overnight trading on thin volumes, although China was the weakest, driven lower by the Autos sector. There were reports that Government purchases of cars would slow dramatically and this saw SAIC Motor fall 2.4%, FAW Car lost nearly 3% and Guangzhou Auto fell nearly 4.5%. In Japan, brokerages were weak with Nomura losing 1% and Daiwa Securities falling nearly 1.5%. In Australia, Mount Gibson rallied 4.4% after the mining company reported strong full year iron ore sales. In Taiwan, there was a surprise profit warning at Taiwan Semiconductor with the shares dropping 5%. The world’s largest custom chip manufacturer stated that increased competition and a possible loss of business from Apple were the main factors.

European equities have opened lower on Thursday in the wake of further sanctions being imposed on Russia due to the Ukraine crisis. The U.S. moves to impose restrictions on the Russian state-controlled oil giant OAO Rosneft and other top firms are aimed at squeezing Russia’s already struggling economy and financial system. In Switzerland, Novartis is 1.5% lower after the Pharmaceutical giant released results that fell short of expectations. There was a positive surprise from German software company, SAP, which is up nearly 5%. The company said revenues from its cloud business jumped by 32%. In the UK, cable company, Liberty Global bought a 6% stake in the broadcaster ITV and the shares are up nearly 7%.