Morning Spread

Morning Spread

Thursday 11th June 2015
IndexLevelChg (%)
UK Market6842.92+0.19
Dow Indust Avg18000.40+1.33
S&P 5002105.20+1.20
Nasdaq Composite5076.69+1.25
Nikkei 22520382.97+1.68
Hang Seng26907.85+0.83
IndexLevelChg (%)
Nymex 1m61.36-0.11
Gold Spot1184.09-0.18
GBP/USD1.5452-0.36
GBP/EUR1.3733-0.11
EUR/USD1.1252-0.46
USD/JPY123.51-0.60

US markets finally rose on Wednesday as investors were cheered by Germany’s stance over Greece and better prospects for the release of more bailout funds. From a market dynamics viewpoint, many will be concerned that the S&P 500 index has traded in its narrowest range this year since 1995. Financials and Technology stocks were once again in the vanguard with Intel up 1.8%, IBM gained 1.95% and Microsoft rose 2.1%. In the Banks, JP Morgan rose 1.7%, Citigroup was 1.8% higher and Goldman Sachs was up nearly 2%. Other climbers included Caterpillar up 2%, Nabors up 3.4% and Abercrombie & Fitch rose 3%.

Asia rebounded as well with most indices up 1/1.5%. In Singapore, the embattled commodity trader, Noble Group, added 6.2% as the management adopted a tough stance over the previous accounting practices. Chinese shares did struggle, as investors were nervous that companies would use the market strength to sell a large number of new shares. China Shenhua Energy lost 1.2% and Poly Real Estate fell nearly 1.5%. In Australia, positive Chinese import data led to a bounce in the iron ore stocks, with BC Iron up 8.5% and Fortescue was up 6.4%. Japan was in positive territory with discount-store operator, Don Quijote, up 7% on increased dividend plans.

Europe is largely holding onto the gains made yesterday with Renault up 1.83%, Cap Gemini is up 1.57% and Credit Suisse is up 1.21%. The luxury goods company, LVMH, is up 2.3% after JP Morgan described the company as offering some of the best growth prospects in the sector, driven notably by handbags. In Italy, Saipem, is up just over 2% on a Citigroup upgrade and ENI is up 0.25%. In the UK, there is further improved performance by the supermarkets with Tesco up 1.75% and Sainsbury up 1.88%. The Chancellor last night announced the sale of the stake in RBS despite still suffering heavy losses, the shares are up 1.3% this morning.