London retailers lower on results

Asia-Pacific region equities markets were mostly higher on Tuesday. The exception was the Shanghai Composite, which dropped 0.07 percent to 4,210.33 on the session. In India, the Sensex added 0.4 percent to 15,794.92. The Hang Seng index in Hong Kong was 0.46 percent higher to 23,472.88, while in Singapore the Straits Times index gained 0.64 percent to 3,665.13. In Taiwan, the Taiex was up 1.27 percent to 9,744.06. Australia’s Sydney Ordinaries added 0.43 percent to 6,455.5, while the S&P/ASX200 gained 0.5 percent to 6,422.3.

In Tokyo, the Nikkei was 0.2 percent higher to 18,002 and the Topix index advanced 0.5 percent to 1,765.99. Meanwhile, the Mothers market of small and mid-caps jumped 1.98 percent to 852.21. Tokyo Electric Power (TYO: 9501) was higher after several sessions of losses after last week’s earthquake damaged one of its nuclear power plants, adding 3.4 percent to ¥3,340. Also managing a comeback was the telecommunications sector, which had been lower after two mobile operators announced price cuts. KDDI (TYO: 9433) had the best rebound in the sector, gaining 4.8 percent to ¥870,000 on a 15.6 gain in operating profits in the quarter ending in June. Elsewhere in the sector, NTT DoCoMo (TYO: 9437) was 1.1 percent higher to ¥178,000 and Softbank (TYO: 9984) was up ¥2,620. The banking sector also saw gains. Mitsubishi UFJ (TYO: 8306; NYSE: MTU) was 0.77 percent higher to ¥1,310,000, while Mizuho Financial (TYO: 8411; NYSE: MFG) gained 2.1 percent to ¥857,000 and Resona Holdings (TYO; 8308) added 4.1 percent to ¥280,000.

The European markets saw significant declines. The FTSE Eurofirst 300 dropped 1.4 percent to 1,587.23. The least of the losers in terms of percentage was the IBEX, which was down 0.98 percent to 14,909.7 in Madrid. In Paris the CAC-40 was 1.69 percent lower to 5,907.47, while the Dax fell 1.73 percent to 7,806.79 in Frankfurt. Car and truck manufacturers were among the few gainers on the session. In Paris, Peugeot (Euronext: UG; OTC: PEUGY) added 0.75 percent to €65.59 for the best performance of the day on the CAC-40. Meanwhile truck maker Man (FWB: EDF1) had the best day on the Dax as it added 1.54 percent to €109.02. Still, the sector remained mixed with BMW (FWB: BMW) down 2.18 percent to €38.15. Insurers had the worst day on both the Dax and the CAC-40. In Frankfurt Allianz (FWB: ALV; NYSE: AZ) dropped 2.44 percent to €164.07, while in Paris Axa (Euronext: CS; NYSE: AXA) fell 3.27 percent to €30.50. Utilities were also lower, with Eon (FWB: EOA; LSE: EON; NYSE: EON) down 2.12 percent to €120.03 and Suez (Euronext: SZE; NYSE: SZE) closing at €40.33, a decline of 2.58 percent. In the semiconductors sector, STMicroelectronics (Euronext: STM; NYSE: STM) was 2.63 percent lower to €13.71, while among oil companies Total (Euronext: FP; NYSE: TOT) fell 2.28 percent to €59.17. Deutsche Post (FWB: DPW; LSE: DPO) was down 2.26 percent to €22.07 after a report that United Parcel Service (NYSE: UPS) has seen strong growth internationally.

London’s markets also saw big losses on the session. The FTSE 100 fell 1.9 percent to 6,498.7, while the FTSE 250 dropped 1.68 percent to 11,584. Retailers were lower after sporting good retailer Sports Direct (LSE: SPD) dropped 22.63 percent to 147p after it issued its second profits warning since it’s IPO in February, prompting negative broker comment. Other retailers seeing declines included GAME Group (LSE: EBQ), which fell 6.86 percent to 193.5p. Home Retail (LSE: HOME) was 3.28 percent lower to 427.25p, while clothing retailer Next (LSE: NXT) was down 2.66 percent to £18.67 and DIY retailer Kingfisher (LSE: KFG) dropped 2.25 percent to 217.5p. Electric power generators were lower as well. British Energy (LSE: BGY) had the worst day on the 100 as it fell 4.5 percent to 509p, while Drax Group (LSE: DRX) was 3.84 percent lower to 700.5p. Miners were also lower, with Anglo American (LSE: AAL) down 3.81 percent to £31.33 and Lonmin (LSE: LMI) dropping 3.88 percent to £35.90. Insurer Old Mutual was 3.93 percent lower to 168.7p after talk that South African bank Nedbank (JSE: NED), in which Old Mutual owns a majority stake, might be the target of a takeover. There were winners on the day. Spread betting specialist IG Group Holdings (LSE: IGG) added 9.21 percent to 341p for the best performance of the day on the 250, while consumer products group Reckitt Benckiser (LSE: RB) had the best day on the 100 with a gain of 1.14 percent to £27.48 ahead of its quarterly report. Other gainers included phone book publisher Yell Group (LSE: YELL), which added 0.69 percent to 472.5p on positive fiscal first quarter results. Imperial Tobacco (LSE: IMT) gained 0.78 percent to £23.13.

The New York equities markets were lower at midday. The Dow Jones Industrial Average was 0.69 percent lower to 13,858.80, while the Nasdaq Composite had dropped 0.54 percent to 2,676.18 and the S&P 500 was down 0.69 percent to 1,530.96. Part of the declines came as quarterly reports disappointed. In the chemicals sector, DuPont (NYSE: DDPRA, DDPRB, DD) reported that profits did not grow in the second quarter even as sales were better overseas. DuPont had dropped $2.96 to $50.30. Texas Instruments (NYSE: TXN) fell $1.32 to $36.86 as it reported profits lower than the same time last year. Fast food chain McDonald’s (NYSE: MCD) was 33 cents lower to $52.17 after it reported a losing quarter on a charge growing out of its sale of Latin American outlets. AT&T (NYSE: T) was 18 cents higher to $40.21 after it said that its earnings were up by 61 percent in the second quarter, but reported that fewer Apple iPhone numbers than had been anticipated were activated following the new phone’s release. Apple (NAS: AAPL) dropped $3.88 to $139.82 on the news of fewer iPhone activations and ahead of its quarterly report, due on Wednesday. Companies exposed to bad loans were lower. American Express (NYSE: AXP) dropped $1.94 to $62.72 after it reported an increase in write-downs on bad loans in the second quarter. Meanwhile, mortgage lender Countrywide Financial (NYSE: CFC) fell $3.08 to $30.98 after it reported significantly lower profits in the second quarter and cut its earnings forecast.