Morning Spread

Morning Spread

Thursday 27th November 2014
IndexLevelChg (%)
UK Market6744.08+0.22
Dow Indust Avg17827.75+0.07
S&P 5002072.83+0.28
Nasdaq Composite4787.32+0.61
Nikkei 22517248.50-0.78
Hang Seng24004.28-0.45
IndexLevelChg (%)
Nymex 1m72.38-1.78
Gold Spot1195.85-0.17
GBP/USD1.5752-0.20
GBP/EUR1.2627-0.04
EUR/USD1.2475-0.24
USD/JPY117.50+0.14

US stocks rose on Wednesday amid optimism that the domestic economy continues to fire along and many indices closed at an all time high. It could well be a good retail season with high levels of consumer confidence and the falling oil price also boosting sentiment. During the third quarter the US GDP rose at an annualised 3.9%, more than expected. Silicon chipmakers were in focus with some good corporate results. Analog Devices was up 5.5% as the company reported not only higher revenue levels but also wider than expected margins. Texas Instruments was up 3.6%, Intel gained 1.6% and Xilinx rose just over 2.5%. In the Agriculture sector, Deere lost nearly 1% as profits struggled in the wake of lower farm spending. The oil sector also saw some sharp drops with Seadrill down 23% as the company suspended dividends and Transocean lost 6%.

In Asia there was weakness for the first time in several trading sessions as a stronger Yen negatively impacted stocks and Energy shares continued to fall. In Australia, Santos fell 3%, Woodside Petroleum lost 2.76% and Oil Search fell 2.64%. In the Retailing sector, Woolworths rose 2.2% as the company confirmed that sales trends were improving. In Japan, a number of shares fell on broker downgrades with OKI Electric down 3.2%, Fuji Heavy lost 3% and Sharp declined 2.4%. The Chinese market continued to be buoyant up 23% year to date with valuations at a 20 month high. China Everbright Bank was up 4% and China Life Insurance gained 5.9%.

Europe is modestly higher in quiet trading ahead of the US Thanksgiving holiday with equity markets closed. BG Group in the UK is down another 1.35% as investors shun the excessive pay award to the new CEO and the company continues to be impacted by weak energy prices. Stagecoach is 6% higher as the transport company along with its partner Virgin have been awarded the new East Coast rail franchise. Fallers in Europe include Statoil down 2.4%, ENI is down 1.25% and Total is nearly 1% lower. Gainers include KPN Telecom up just over 1%, Bayer is up 1.2% and Credit Agricole is up 1.1%.