Morning Spread

Morning Spread

Tuesday 9th December 2014
IndexLevelChg (%)
UK Market6590.38-1.22
Dow Indust Avg17852.48-0.59
S&P 5002060.31-0.73
Nasdaq Composite4740.69-0.84
Nikkei 22517813.38-0.68
Hang Seng23485.83-2.34
IndexLevelChg (%)
Nymex 1m62.73-0.51
Gold Spot1207.75+0.36
GBP/USD1.5684+0.28
GBP/EUR1.2684+0.12
EUR/USD1.2364+0.40
USD/JPY119.64+0.94

The US equity markets saw some weakness to start the trading week with further falls in the crude oil price depressing the Energy sector. Conoco was down 4.5%, Transocean fell 5% and Chevron was down 3.7%. There was disappointing sales data from McDonalds with the shares losing nearly 4% on poor November trading. Other fallers included Caterpillar down 3.57%, Frontier Communications was down 5.2% and Norfolk Southern lost 3.4%. Of the risers, Morgan Stanley was up 2%, Amgen was up 1.4% and United Technology gained 1.6%.

In Asia there was a sharp fall in the previously strongly performing Chinese market. The Shanghai index lost nearly 5.5%, the biggest one day decline since 2009. The currency weakened as the authorities tightened the collateral rules for short term loans. Into 2015, a Chinese ‘hard landing’ remains top of many investors fear list. Ping An Bank lost 10%, Yanzhou Coal fell 10% and China Petroleum & Chemical Corporation fell 8.5%. In Japan, Sony fell another 4% and in Energy stocks, Japan Drilling fell 5% and Chiyoda was down 2%. Australia also saw the oil bloodbath continue with Sundance Energy down 11%, Senex down 17% and Oil Search fell 7%.

In Europe there is another profit warning from UK supermarket giant Tesco. The latest profit forecast is virtually half the estimate of six months ago and shows how quickly and dramatically profitability has declined. The sector is unsurprisingly weaker with Wm Morrison down 5.7% and Sainsburys is some 5% lower. Oil related weakness is being seen in Weir Group down 4.25%, Tullow Oil down 3.9% and Petrofac down 3.5%. European markets are typically 1% lower with Metro down 2.16%, ENI down 2.6% and Carrefour down 1.7%.