Morning Spread

Morning Spread

Friday 31st October 2014
IndexLevelChg (%)
UK Market6531.32+1.05
Dow Indust Avg17195.42+1.30
S&P 5001994.65+0.62
Nasdaq Composite4566.138+0.37
Nikkei 22516413.76+4.83
Hang Seng23998.06+1.25
IndexLevelChg (%)
Nymex 1m80.58-0.65
Gold Spot1174-2.10
GBP/USD1.5979-0.10
GBP/EUR1.2727-0.33
EUR/USD1.2556-0.43
USD/JPY111.58-1.94

Asia equity markets overnight were dominated by the surprise move by the Bank of Japan to boost further the level of Quantitative Easing. This was also accompanied by the State Pension Fund boosting the ownership of local equities and reducing bonds. This resulted in the Nikkei Index gaining a massive 4.83% and closing at a seven year high. The currency tumbled and exporters such as Toyota gained 3.8%, Suzuki was up 6.3% and Nomura was up 6.75%. In Australia, the Financials were in focus with positive results boosting ANZ by 0.72% and National Australia Bank was up just over 1%. China also gained to reach the longest period of monthly gains on the equity market since 2009. Jiangxi Copper was up 1.6%, Baoshan Steel rose 2.1% and Bank of Ningbo was up sharply by 8.6%.

The US equity markets all moved higher on Thursday as the economic growth in Q3 beat expectations, rising by an annualised 3.5%. There was also a raft of positive corporate earnings. Visa, for instance, rose 10%, the most since 2011 and MasterCard was up 9.4%. A notable exception was Avon Products which released a profit warning and the stock fell 9%. Other fallers included the commodity exposed stocks with Newmont Mining down 2.3% and Halliburton down 0.90%.

Europe is following other equity markets higher on Friday, as stocks rally strongly on the last day of the month. Royal Bank of Scotland is one of the biggest gainers in the FTSE 100 with the shares currently up 2.68%, HSBC is up 1.64% and Lloyds is up 1.06%. Strong results from International Consolidated Airlines have seen the shares rise 4.25%. European banks are also rising with UBS up 1.1%, Credit Suisse is up 1.2% and BNP Paribas is up 2.89%. A rare decliner is Anheuser-Busch InBev which reported profits short of expectations. The world’s largest brewer has suffered weakness in China and Russia revenues and the stock is down 2.6%.