Morning Spread

Morning Spread

Thursday 20th November 2014
IndexLevelChg (%)
UK Market6665.67-0.46
Dow Indust Avg17685.73-0.01
S&P 5002048.72-0.15
Nasdaq Composite4675.71-0.57
Nikkei 22517300.86+0.07
Hang Seng23349.64-0.10
IndexLevelChg (%)
Nymex 1m74.32-0.35
Gold Spot1193.33+0.90
GBP/USD1.5664-0.12
GBP/EUR1.2514-0.13
EUR/USD1.2519-0.25
USD/JPY118.32-0.49

In Asia, the commodity sector was weak again, with the iron ore price continuing to slide. Australian miners such as BC Iron was down 4.4%, Arrium dropped nearly 6% and Fortescue was down nearly 4%. Even the majors were negatively impacted with BHP Billiton down 2.6% and Rio Tinto was down 2.71%. Exporters outside of Japan were dragged lower on competition fears as a result of the weak Yen. In South Korea, Hyundai Motor lost 2.6%, Hankook Tire was down over 2% and Kumho Tire was some 3.15% lower. In Japan, the textile sector was boosted by positive broker comment, with Toray Industries up 6.4% and the sector was up 3.2%. There was weakness in the consumer lending sector on the recession fears with Credit Saison down 3.3% and Orix Corp lost 2.7%.

US equities fell from their highs in Wednesday trading after the Federal Reserve minutes showed that there was concern regarding deflation. Retailers bucked the trend and were the best performing sector after results came out, topping market expectations. Target Corp rose 7.4%, Staples jumped 9% and Lowes gained 6.4%. In the Energy sector, Ultra Petroleum was up 3.3% as the natural gas stock reacted positively to some record snow storms and the hope of a cold winter. Other risers included Frontier Communications up 2.04%, Mondelez International was up 1.04% and Coca Cola was up 1.58%. On the negative side, Alcoa lost 2.7%, Qualcomm lost 2.1% and Transocean fell 1.95.

In Europe equities are weaker in Thursday trading as fears continue that economic recovery is losing traction and that deflation remains evident. A manufacturing gauge also missed expectations with a reading of 50.4 against a 50.8 forecast. In France, Technip lost over 6% as the Energy Services company bid for its rival, CGG. Financials are lower with Santander down 2.23%, Commerzbank is down 1.9% and ING is down 1.78%. In the UK, the Mining sector is also lower on Chinese growth fears with Anglo American down 2.5% and Antofagasta down 1.5%.