Morning Spread

Morning Spread

Wednesday 23rd July 2014
IndexLevelChg (%)
UK Market6797.02+0.02
Dow Indust Avg17113.54+0.36
S&P 5001983.53+0.50
Nasdaq Composite4456.01+0.71
Nikkei 22515328.56-0.10
Hang Seng23970.84+0.81
IndexLevelChg (%)
Nymex 1m101.99-0.39
Gold Spot1308.28+0.14
GBP/USD1.7087+0.19
GBP/EUR1.2697-0.26
EUR/USD1.3459-0.06
USD/JPY101.39+0.10

US equities were once again strong in Tuesday’s trading session with the S&P 500 back close to it’s all time high. Consumer Price inflation of 0.3% in June showed that despite the recovery, inflation simply has not been an issue thus far in the economic recovery. Companies reporting yesterday included Peabody Energy up 1.2%, Comcast also rose 1.2% and the restaurant company, Chipotle, surged 11%. On the negative side, Coca Cola lost 3% on results that missed expectations, reflecting sluggish demand in the juice business. Harley-Davidson lost nearly 6% on reduced sales volume and Kimberly-Clark fell 2.6%.

In Asia there was more optimism on China, with the MSCI Asia Pacific Index finishing at a six year high. In South Korea, the confectionery company, Lotte, gained just over 8% on new that the parent company is considering unwinding cross shareholdings. After positive results from Apple there were rises among the suppliers with AAC Technologies up 1%, Sharp rose 1.2% and TCL Corp rose 1.7%. On the negative, Tokyo Electron lost 3% after strong opposition to the proposed merger with Applied Materials. Financials in Japan also trended lower with Softbank down 1.3%, Aplus Financial dropped just over 3% and Japan Exchange fell 2%. In Australia, Magellan Financial was up 7% on news of strong fund inflows.

Europe is relatively quiet in early trading. Akzo Nobel, Europe’s largest paint company has reported strong second quarter results and the shares are up over 4%. The company is benefitting from stronger sales revenue combined with previous cost cutting. In Germany, Daimler is up just over 2% after reporting results ahead of expectations. However, in Switzerland, industrial giant ABB is down nearly 1.5% on a profit shortfall. There are few standout features in the UK, although support services company, Capita, is up 3% on strong results.