Morning Spread

Morning Spread

Wednesday 19th November 2014
IndexLevelChg (%)
UK Market6701.05-0.13
Dow Indust Avg17687.82+0.23
S&P 5002051.80+0.51
Nasdaq Composite4702.44+0.67
Nikkei 22517288.75-0.32
Hang Seng23373.31-0.66
IndexLevelChg (%)
Nymex 1m74.59-0.03
Gold Spot1199.68+0.23
GBP/USD1.5676+0.18
GBP/EUR1.2502-0.13
EUR/USD1.2537+0.05
USD/JPY117.58-0.67

US equities added gains in yesterday’s trading with both the Dow Jones and the S&P 500 indices reaching new all-time highs. The October Producer Price Index rose 0.2%, whilst Home Builder sentiment beat market expectations. There was also optimism from the Japanese election announcement and the delay in the sales tax implementation. Home Depot reported strong figures but the stock succumbed to profit taking and fell just over 2%. Other fallers included Tyco International down 1.54%, Transocean was down 1.33% and Microsoft lost 1.45%. Improved sentiment spread into the potash sector with Mosaic up 3.3% and Potash Corporation gained 4.76%, whilst Compass Minerals was up just over 2%.

In Asia there was widespread weakness as investors struggled with a stronger US $ and some lack of buying following the Japanese dissolution of parliament. The Yen fell to the lowest level in nearly eight years. In Hong Kong, the energy sector was weaker with CNOOC falling 0.9%, Kunlun was down 2.9% and PetroChina fell 0.8%. In Japan, OKI Electric was a stand out mover, up 6% on a bullish report from the broker, Goldman Sachs. In the automobile supplies sector, Takata dropped 7.5% after the US authorities recalled the company’s airbags, claiming they put lives at risk. In Australia, there was some relief as Gold futures climbed to a two week high with Northern Star up 6.5% and Medusa Mining up 5.7%.

Europe is generally weaker with Areva in France plunging 16%, as the power generation company abandons any forecasts for the next two years. In the Oil Services sector, Technip is down nearly 2% as the broker, Citigroup, sees exploration budgets falling by at least 10% in 2015. In the UK, the Mining sector is weak with Anglo American down 1.87%, BHP Billiton is down 1.75% and Rio Tinto is down 1.66%. Royal Mail has released disappointing figures which point to ever increasing levels of competition and the shares are down 8%. Gainers include Telecom Italia up 1.55%, Den Norske Bank is up 1.88% and KPN is up 1.04%.