Morning Spread

Morning Spread

Monday 11th January 2016
IndexLevelChg (%)
UK Market5920.71+0.14
Dow Indust Avg16346.45-1.02
S&P 5001922.03-1.08
Nasdaq Composite4643.63-0.98
Nikkei 22517697.96unch
Hang Seng19888.50-2.76
IndexLevelChg (%)
Nymex 1m32.68-1.45
Gold Spot1101.09-0.27
GBP/USD1.4569+0.36
GBP/EUR1.3384-0.42
EUR/USD1.0885-0.34
USD/JPY117.74-0.40

US equity markets finished the week with further declines as investors continued to worry over the Chinese economy, it was the worst week since 2011. There was also evidence that the US economy hit a flat spot during December, impacted by weakness in the manufacturing sector. One of the biggest fallers was retailer, The Gap, which sank 14% on a profit warning, caused by falling sales at its Old Navy chain which had previously been seen as the star. Other retailers to decline included Abercrombie & Fitch down 7.5%, Target Corp down 3.5% and Wal Mart down 2.3%. Crude oil prices also remained under downward pressure with Chevron losing 1.07%, Exxon Mobil down 2% and Transocean down 2.3%. Other fallers included Citigroup down 3%, Alcoa down 2.4%, Cisco down 2.5% and Boeing fell 2.27%.

Asia saw further falls with the Shanghai Composite closing down 5.3% as a record 46th month of falling factory gate prices added to pessimism over the economy. PetroChina lost 3.6%. Japanese markets were closed for a Public Holiday. In Hong Kong, the Hang Seng Index fell below 20,000 for the first time since 2013 with China Overseas Land down 4.8% and Evergrande down 5.7%. In Australia, mining stocks closed at multi year lows with Rio Tinto down 3.3% and BHP Billiton down nearly 5%. Banks also suffered with ANZ losing 1.5% and National Australia Bank down 1%.

In Europe equities are trying to rally led by the Financials sector with Commerzbank up 2.4%, Santander up 3.2% and Credit Agricole up nearly 1.7%. Improved bond markets have also helped Zurich Insurance up 2.9% and AXA up nearly 2%. In Italy, Telecom Italia is up 2.6% on reports it will sell the remainder of its Tower division this year. The Autos sector is also positive with consumers benefitting from lower oil prices with Daimler up 2.65, Renault up a similar amount and Porsche gaining 4.6%. In the UK, BAE Systems has continued its positive recent run up another 1.7%, whilst Whitbread is 1.8% higher and Sage is up 1.65%.