Morning Spread

Morning Spread

Thursday 11th December 2014
IndexLevelChg (%)
UK Market6519.88+0.31
Dow Indust Avg17533.15-1.51
S&P 5002026.14-1.64
Nasdaq Composite4684.02-1.73
Nikkei 22517257.40-0.89
Hang Seng23312.54-0.90
IndexLevelChg (%)
Nymex 1m61.41+0.77
Gold Spot1223.44-0.26
GBP/USD1.5683-0.17
GBP/EUR1.2595+0.36
EUR/USD1.2450+0.18
USD/JPY118.25+0.20

The US equity market saw material weakness on Wednesday with the S&P 500 index falling 1.64%. The focus was yet again on the surprising further weakness in the crude oil price, which played havoc with the energy producers. In the sector, Exxon was down 3%, Chevron fell 2% and Conoco lost 2.2%. There was a surprise poor trading update at JP Morgan which reported lower trading revenue in the current quarter. The shares fell 2.8% with Goldman Sachs down 2.5% and Morgan Stanley down 1.8%. Virtually all stocks were down with other fallers being Toll Brothers down nearly 8%, Dow Chemical fell 3.8% and Freeport-McMoRan was down 4.6%.

In Asia there was equity weakness across the board with most indices falling 0.75%. In Australia, Telstra was a rare gainer up 1.25% as the telecoms company upgraded profit forecasts. In Hong Kong Haitong Securities fell 7.5% as the broker announced the acquisition of the investment banking arm of the embattled Portuguese bank, Espirito Santo. In Japan, Honda fell 1.2% and Olympus lost 1.8% as the Yen showed further signs of strength. In Taiwan, technology company, Foxconn, was positive, up 2.7% as November sales rise nearly 30%.

Europe is trying to rally in early trading with Allianz up 1.34%, Sanofi-Aventis up 1.31% and Siemens up 1.21%. Telecom Italia is up 5% on reports of a Telefonica led consortium bid for the company valued at approximately $15 billion. Energy stocks are trying to recover in the UK with BP up 1.7%, Shell rising 1.2% and Tullow Oil up 1.4%. Other gainers include Rolls Royce up 1%, Tesco up 1% and GlaxoSmithKline is 0.9% higher. There are few other features.