Morning Spread

Morning Spread

Monday 6th June 2016
IndexLevelChg (%)
UK Market6253.29+0.70
Dow Indust Avg17807.06-0.18
S&P 5002099.13-0.29
Nasdaq Composite4942.52-0.58
Nikkei 22516580.03-0.37
Hang Seng21036.24+0.42
IndexLevelChg (%)
Nymex 1m49.22+1.23
Gold Spot1241.46-0.22
GBP/USD1.443-0.51
GBP/EUR1.271+0.45
EUR/USD1.1358-0.08
USD/JPY107.14+0.61

US equities endured a volatile session on Friday as the Labour Department reported that the US economy had added only 38,000 jobs in May, the lowest amount in five years. There were also signs of a further slowdown with services growing at the slowest rate for two years. This led to speculation that the Federal Reserve will now not raise interest rates until at least September. This led to a weak Financial sector with Bank of America down 3.5%, Goldman Sachs down 2.6% and American Express down 1.4%. Commodities were the winner of the changing economic scenario as Gold rallied, Newmont Mining rose over 9%, Freeport McMoran was up 4% and iShares Silver climbed 2.5%. In the Retailing sector, the Gap was up over 4% as the company released better than expected sales data.

Asia was mixed in Monday trading with China and Japan lower, offset by gains in Australia and Hong Kong. The Japanese market was predictably lower with a stronger Yen impacting the export sector. Last week the Government delayed the imposition of a higher retail sales tax due to weak levels of consumption. Declining stocks included Panasonic down 2%, Mazda Motor lost 1.3%, Honda fell nearly 2% and Tokio Marine reflected a poor insurance sector falling nearly 3%. In Australia, the mining sector was positive with Rio Tinto up 4%, Newcrest Mining gained 12% and St Barbara rose 15%. In Hong Kong, casino stocks were down on a broker downgrade with Galaxy down 2.1%, Sands down 1.6% and Wynn losing more than 3%.

Europe is up in early trading , although in the UK the level of Sterling is once again under negative pressure as the opinion polls showed the ‘Leave’ camp gaining further ground. The Mining sector is strong here too, with Anglo American up 5.6%, BHP Billiton is up 5% and Glencore is up nearly 4%. UK domestic earners are under negative pressure with Persimmon down nearly 2%, Berkeley Group is also down 2% and Land Securities is down 0.60%. Financials in Europe are trying to rally with Credit Agricole up 1.3%, Santander is up a similar amount, UBS is up 1% and Deutsche Bank is up 0.30%.