Morning Spread

Morning Spread

Wednesday 10th December 2014
IndexLevelChg (%)
UK Market6555.20+0.39
Dow Indust Avg17801.20-0.29
S&P 5002059.82-0.02
Nasdaq Composite4766.465+0.54
Nikkei 22517412.58-2.25
Hang Seng23524.52+0.16
IndexLevelChg (%)
Nymex 1m62.86-1.50
Gold Spot1230.59-0.03
GBP/USD1.5678-0.04
GBP/EUR1.2666-0.09
EUR/USD1.2379-0.12
USD/JPY119.23+0.06

In the US equity market there was weakness, although markets strengthened as the day progressed. A rally in Energy and Technology stocks offset some investor concerns over both China and Greece. Apple was up 1.53%, Nabors gained 2.3%, Amazon was up 1.9% and Google gained 1.2%. In Telecoms, Verizon issued a downbeat statement on profits at the wireless division, as the company have had to offer greater discounts and promotions. In the Retailing sector, Lululemon Athletica was up over 6% after a strong broker upgrade on the stock. Abercrombie & Fitch was also up, gaining 8% as the long term CEO announced his retirement.

Asia was mixed with the Chinese markets bouncing back from the heavy falls of yesterday, whereas Japan fell over 2%. The Japanese weakness was largely due to a recovery in the Yen, as investors looked for safe haven assets. Interestingly Gold also rallied by 2.25% on similar fears. Fallers on the Nikkei included Kawasaki Heavy Industries down 5%, Mitsui Chemicals down 5.2% and Yokohama Rubber lost 3%. The gold rally boosted the Australian sector with Resolute up 11%, Beadell up 7.5% and Evolution up 6.5%. Gainers in China included Ningbo Port up 10% on expanding rail links into Central Asia and Jishi Media was up 10% on tax incentive measures announced by the Government.

Europe is rallying after yesterday’s sharp falls with most indices up 1%. Greece fell in Tuesday trading by 13%, the biggest one day fall since 1987. The Prime Minister will have to rely on opposition votes in next week’s Presidential elections, an outcome that could lead to fresh elections. Gainers so far include Santander up 1.24%, Airbus up 1.35% and Air Liquide up 1.30%. In the UK, there is positive news from embattled Energy giant, BG Group. The company have sold the Australian gas pipeline business for $5 billion with the proceeds being used to reduce debt levels. Tesco is rallying 1.29% after yesterday’s poor trading update and SAB Miller is up 1.1%.