Morning Spread

Morning Spread

Tuesday 7th June 2016
IndexLevelChg (%)
UK Market6311.95+0.61
Dow Indust Avg17920.33+0.64
S&P 5002109.41+0.49
Nasdaq Composite4968.71+0.53
Nikkei 22516675.45+0.58
Hang Seng21328.24+1.42
IndexLevelChg (%)
Nymex 1m49.78+0.18
Gold Spot1242.50-0.23
GBP/USD1.4566+0.73
GBP/EUR1.2814-0.81
EUR/USD1.1368-0.09
USD/JPY107.79-0.79

The US equity market was boosted on Monday with a strong performance from the wider commodity sector.  It has now rallied more than 20% from the January low. Crude oil closed at a ten month high, a salutary lesson not to believe many of the most bearish market forecasts. Nabors gained 12.6%, Transocean was up 14.6%, Halliburton rose nearly 5% and Alcoa was up 3.4%. Financials were also buoyed by strong buying with Bank of New York up 2%, Morgan Stanley rose 1.1% and JP Morgan was up 1%. Other stocks to gain included Lindsay Corporation up 5%, Deere gained 2.2%, Bristol Myers was up 1.9% and Texas Instruments was up 1.3%. The Retailing sector was weaker again with Abercrombie & Fitch down 2%, Home Depot declined 1.9% and Lowes fell 2%.

Asia equities were typically stronger with Japanese stocks also buoyed by the positive commodity sector. Shares in Inpex, the largest oil and gas explorer rose nearly 5% and Showa Shell climbed 3%. However this meant that airlines were negative with Japan Airlines down 2.4%. Suzuki was down nearly 2% as reports suggested that the Government would re-test fuel efficiency. The Emerging Markets Index looked set to enjoy the longest rally in over two months with Posco in South Korea up 7% on a more positive backdrop for the sector. Australian miners continued to climb with Rio Tinto up another 2.3% and BHP Billiton up 3.2%. In China, PetroChina added 2.2% and China Oilfield Services rose 6%.

Europe is in positive mood today with the wider Euro Stoxx index up over 1%. Financials are positive with Deutsche Bank up 2.75%, Unicredit is up 2.24% and Commerzbank is up nearly 2%. Other risers across the Continent include RWE up nearly 3%, Thyssenkrup is up 2.3%, BASF is up 2.2% and Renault is 1.7% higher. In France, Vivendi is down 1.2% after Barclays downgraded the stock with a 16.50 price target, against the current price of 16.90. Royal Dutch Shell is leading the UK higher with a gain of 2.6% and the company remain confident they can deliver further cost savings following the BG Group takeover. Other risers include Old Mutual up 1.3%, Rolls Royce up 1.4% and Shire up 1%. Decliners include Direct Line Insurance down 0.8%, Imperial Brands down 0.5% and Compass Group down 0.5%.