Morning Spread

Morning Spread

Monday 25th January 2016
IndexLevelChg (%)
UK Market5875.34-0.42
Dow Indust Avg16093.51+1.33
S&P 5001906.90+2.03
Nasdaq Composite4591.18+2.66
Nikkei 22517110.91+0.90
Hang Seng19340.14+1.36
IndexLevelChg (%)
Nymex 1m30.92-3.95
Gold Spot1103.75+0.52
GBP/USD1.4246-0.14
GBP/EUR1.3160+0.32
EUR/USD1.0826+0.27
USD/JPY118.27+0.43

US equities enjoyed the biggest rally in nearly a month on Friday as the embattled Energy sector delivered gains on the back of a rise in the crude oil price. Investors are convinced there are further sharp falls to come before a ‘bottom’ is established. Gainers in the Energy sector included Chevron up 3%, Halliburton was also up 3%, Nabors climbed nearly 6.5% and Valero Energy was some 7% higher. Technology stocks were also firmer with Apple up just over 5% ahead of an update from the company this week. Other stocks on the rise included Microsoft up 3.6%, Alphabet up 2.6%, Cisco up 2% and China Mobile rallied 3.7%. The biggest loser was American Express which dropped 12%, the biggest one day fall in 7 years, after the company gave a negative view for both 2016 and 2017.

Asian markets were also broadly higher following the US rally with Japan generally up 1% and Hong Kong rose 1.4%. Volatility in the underlying markets remains at extended levels. Chinese authorities announced plans to further cut overcapacity in the steel and coal sectors, which led to a rally in the sector. Angang Steel was up 5.5%, Beijing Shougang rose 4.25% and Hunan Valin Steel rose 10%. Japanese investors expect further stimulatory measures as export data showed a steeper than expected 8% decline in the last quarter. Japan Tobacco gained another 7% after a promising pricing environment was factored into the shares. On the downside, Toshiba lost nearly 6% as the company may sell some of its chipmaking business which could weaken the structure overall. In Australia, Ten Network rallied over 10% as the broadcaster revealed positive viewing figures.

Europe is lower in early trading as crude oil starts to fall back. In the UK, B.P is currently down 2.25%, with Royal Dutch Shell off 1% and in France, Total is some 2% lower. Other fallers in the region include Telecom Italia down 1%, Commerzbank down 3%, BASF is 1.65% lower and Metro is down just over 1%. In the UK, 3i Group is some 1% firmer after a broker upgrade suggested the investment company has defensive attractions with consistent NAV out performance. LafargeHolcim is in focus after the CEO described plans to sell CHF 3.5 billion of assets by 2018. There will be continued cost savings and a belief that the benefits of the merger have not yet been reflected in the stock price. The shares are flat.