Morning Spread

Morning Spread

Tuesday 22nd July 2014
IndexLevelChg (%)
UK Market6772.97+0.66
Dow Indust Avg17051.73-0.28
S&P 5001973.63-0.23
Nasdaq Composite4424.70-0.17
Nikkei 22515343.28+0.84
Hang Seng23770.90+1.62
IndexLevelChg (%)
Nymex 1m105.16+0.54
Gold Spot1305.84-0.51
GBP/USD1.7068unch
GBP/EUR1.2638-0.11
EUR/USD1.3505-0.12
USD/JPY101.50-0.15

US equities were weaker on Monday as investors considered the ramifications of an escalating situation involving not only Russia but also Israel. It seems likely that harsher sanctions will be imposed on Russia, as evidence mounts regarding the missile strike on Malaysian Airlines MH-17. President Obama emphasised that a diplomatic solution was paramount. Such tensions and quiet summer trading saw the VIX, the volatility index, have the biggest jump for 15 months up just over 6%. EMC Corp climbed 5% as reports that an activist investor was pushing for the world’s biggest storage computer manufacturer to adjust the corporate structure. There were few other risers with Facebook up 1.4% and Intel up just over 1%. Fallers included McDonalds down 1.5%, General Electric down 1.8% and The Gap down 1.1%.

In Asia there was a decent rally in equities, spurred on by optimism in China that the Government would further stimulate the economy. Japan was also strong, boosted by the export sector and the steel sector. Tokyo Steel gained more than 12% after the company raised its full year target by more than 20% and brokers suggested this could still be conservative. Nintendo was up nearly 3.5% after Morgan Stanley increased their rating on the game-maker. In Hong Kong, a stronger oil price boosted energy stocks such as China Petroleum up 3% and CNOOC was up just over 1%. In Australia, BHP Billiton was up 0.8% ahead of quarterly results tomorrow.

Europe is following Asia higher on Tuesday with many equity markets up more than 0.5%. In the UK, the improved sentiment in China is boosting the Mining sector with Anglo American up 3%, Rio Tinto is up 1.75% and Glencore is up just over 1.2%. An uninspiring update from the Royal Mail has seen the shares fall 1.3%, after the company reported pressure on the vital parcels business. In France, Publicis is down 5.7% after the advertising company dropped plans for a $35 billion merger with Omnicom Group. Gainers include Airbus up 1.2%, Total Fina is up just over 2% and ARM Holdings is up nearly 3% after reporting results.