Morning Spread

Morning Spread

Wednesday 10th June 2015
IndexLevelChg (%)
UK Market6766.35+0.19
Dow Indust Avg17764.04-0.01
S&P 5002080.15+0.04
Nasdaq Composite5013.86-0.15
Nikkei 22520046.36-0.25
Hang Seng26696.07-1.09
IndexLevelChg (%)
Nymex 1m61.13+1.65
Gold Spot1183.72+0.59
GBP/USD1.5453+0.54
GBP/EUR1.3597+0.31
EUR/USD1.1364+0.84
USD/JPY122.84+1.19

US equities closed virtually flat in Tuesday trading, with the Financials sector performing better on the back of the prospect for higher interest rates. Gainers included Bank of America up 1.34%, Wells Fargo rose 1.04% and Citigroup was up 0.63%. Consumer staple stocks were also resilient performers with Procter & Gamble up 1.5% and Colgate-Palmolive increased 1.06%. The Airline sector continued its miserable recent run with Southwest Airlines down 4.21%, Alaska Air dropped just over 3% and Spirit Airlines fell 2.58%. Freeport-McMoRan rose over 3%, as Morgan Stanley issued a positive note, arguing that earnings have bottomed.

Asia stocks were generally weaker, with Chinese stocks impacted by the deferral by MSCI of adding mainland stocks to its benchmark indices. The newly merged rail company, CRRC Corp, lost 9% and Huaneng Power fell 2.7%. In South Korea, Samsung C&T closed up 10% as a US hedge fund once again tried to improve the corporate governance in the region. There was however some concern over the latest outbreak of Middle East Respiratory Syndrome with Asiana Airlines losing 7% and Korea Air Lines closed 4% down. A stronger Yen in Japan hit exporters, with Nissan down 1.3%, Mazda fell 1.7% and ANA Holdings lost 1.5%.

Europe is also pretty quiet, with markets trying to stage some sort of rally after the recent weakness. Roche is 1.42% higher in Switzerland as optimism builds on the new drug, Actmera for systemic sclerosis. Other gainers include BASF up 1.43%, ENI up 1.21% and Telecom Italia up 1.64%. There should be the long awaited progress report on the Greek debt talks today as Alexis Tsipras meets Angela Merkel and Francois Hollande. In the UK, the supermarket sector is rising with J Sainsbury up 2.81% as sales fell less than expected. The company have committed £200m to enable price cuts to be made. Tesco is up 2.33% and Wm Morrison gained 1.63%. On the downside, Weir Group is 2.84% lower as conditions remain tough in the oil and gas sector.