Morning Spread

Morning Spread

Thursday 4th December 2014
IndexLevelChg (%)
UK Market6717.30+0.01
Dow Indust Avg17912.62+0.18
S&P 5002074.33+0.38
Nasdaq Composite4774.47+0.39
Nikkei 22517887.21+0.94
Hang Seng23832.56+1.72
IndexLevelChg (%)
Nymex 1m67.65+0.40
Gold Spot1204.31-0.42
GBP/USD1.5674-0.18
GBP/EUR1.2727+0.27
EUR/USD1.2316+0.09
USD/JPY119.98-0.13

In the US equities were mildly positive in Wednesday’s trading with the Financials mostly in positive territory. Citigroup was up 1.56%, Morgan Stanley gained nearly 2.10% and Bank of America was 0.82% higher. The sharp fall in the oil price has led to speculation that many companies will be forced into defensive mergers. The rumours saw Diamond Drilling up 3.5%, Nabors rise 3.25%, Schlumberger was up 1.82% and Halliburton rose just over 1%. Data from the service sector in November showed the fastest pace of expansion in more than nine years. Other gainers included Honeywell up 2.16%, General Electric up 1.27% and Norfolk Southern up 2.37%. Consumer stocks gave up some of their recent gains with PepsiCo down just over 2%, Colgate-Palmolive was down 1.15% and Campbell Soup was down 1.62%.

Asia was boosted once again by the Chinese equity markets with the biggest one day rise in Shanghai since December 2012. The index has now risen ten out of the last eleven days, buoyed by strong trading volumes. Unsurprisingly brokers closed at all time highs with Citic Securities up 12% and China Galaxy Securities up 14%. Japanese stocks also closed at high levels, with the highest level in the Topix since 2007. Automakers were boosted by the weak currency with Honda up 2% and Nissan up 1.7%.

In Europe shares are mixed in quiet trading with a stand out feature being the third upgrade this year in Ryanair’s full year profits. The shares are up over 8% as not only costs decline but the company continue to take market share from the business market. Other gainers include Unilever up 2.75% on news of a splitting of business divisions in spreads. Richemont is up 1.1%, Renault is up 1.29% and Syngenta is up 1.06%. In the UK, the housebuilding sector is reacting well to the Autumn statement with Persimmon up 2.47%, Taylor Wimpey is up 2.57% and Redrow is 3.13% higher.