Morning Spread

Morning Spread

Thursday 14th August 2014
IndexLevelChg (%)
UK Market6658.16+0.03
Dow Indust Avg16651.80+0.55
S&P 5001946.72+0.67
Nasdaq Composite4434.125+1.02
Nikkei 22515314.57+0.66
Hang Seng24813.42-0.32
IndexLevelChg (%)
Nymex 1m97.22-0.37
Gold Spot1316.83+0.30
GBP/USD1.6666-0.19
GBP/EUR1.2475+0.10
EUR/USD1.3359-0.09
USD/JPY102.44+0.02

US equity markets were in positive mood on Wednesday as slower retail sales data suggested that the Federal Reserve will keep the plentiful liquidity conditions in place for longer than expected. Healthcare stocks were in focus with Intermune climbing 14% after reports that the company had received a bid from Roche. This boosted Vertex Pharmaceuticals which rose nearly 4%. Health Care REIT gained just over 2% as it took over rival company, HealthLease Properties. Amongst the decliners, the department store, Macy’s, fell over 6% on a profit warning. The retailer highlighted falling margins driven by discounting to attract shoppers. King Digital also dropped on a profit warning, with the stock down 23%. The maker of the Candy Crush game pointed to slowing merchandise sales.

In Asia there was mixed trading with the Japanese equity markets making gains, however the Chinese markets suffered losses. There was disappointing credit data and fears are rising that the Government stimulus measures will prove to be inadequate. Jiangxi Copper lost 2%, as did Aluminium Corporation of China and Datong Coal fell 4%. On a positive note, SAIC Motors rose 4% after reporting strong sales data. In Hong Kong the casino stocks were in positive territory with SJM Holdings up 4.2% after profits beat expectations, Melco Crown also rose gaining 2.6%. The weaker Yen helped Japanese stocks, with Suzuki up 1.7%, Obayashi up 3% and Sony was up 1%.

Europe is moving lower in early trading after the release of weak economic data, both in France and Germany. In the second quarter France failed to grow at all and in Germany, GDP actually declined 0.2% from the first quarter. RWE is down 2.5% after Germany’s largest electricity company moved into losses on a weak pricing environment. ThyssenKrupp is up nearly 2% after the steelmaker reported a surge in profits, driven by a US recovery. Luxury brands group, LVMH, is down 1.25% after the stock was downgraded by Goldman Sachs. In the UK, the mining sector is weaker with Glencore down 1.45% and Rio Tinto is down 1.70%.