Morning Spread

Morning Spread

Thursday 29th October 2015
IndexLevelChg (%)
UK Market6368.33-1.08
Dow Indust Avg17779.52+1.13
S&P 5002090.35+1.18
Nasdaq Composite5095.69+1.30
Nikkei 22518935.71+0.17
Hang Seng22819.94-0.60
IndexLevelChg (%)
Nymex 1m45.49-0.98
Gold Spot1161.37+0.46
GBP/USD1.5269+0.34
GBP/EUR1.3932+0.65
EUR/USD1.0960-0.96
USD/JPY120.72-0.16

European were mixed this morning following the Federal Reserve’s comments and despite a batch of strong corporate earnings reports. The ESTX 50 (-0.08%), UK markets (-1.06%), CAC 40 (-0.21%) and the Dax (-0.06%) all fluctuated between losses and gains in early trading. Rio Tinto Group and BHP Billiton Ltd led a gauge of miners to the worst performance of 19 European industry groups, falling at least -3.3% after Liberum Capital cut their ratings to sell. Barclays Plc dropped -4.9% after saying third quarter profit fell 10%, missing estimates. Royal Dutch Shell Plc lost -1.1% after reporting its biggest net loss in at least a decade. Bayer rose +1.1% after posting profit that beat analyst estimates. Deutsche Bank AG slid -3.6% after posting its biggest overall three month loss in at least a decade.

 

US stocks rose as the Federal Reserve gave a vote of confidence in the US economy by signalling a December interest rate hike was still on the table. The Dow Jones Industrial Average (+1.13%), S&P 500 (+1.18%) and the Nasdaq Composite (+1.30%) all advanced. The Fed left rates unchanged, as expected, and in a direct reference to its next meeting, put a December rate hike firmly in play. It also downgraded global economic headwinds in its statement. A +4.1% gain in Apple’s shares also helped support indexes a day after stronger than expected results. Apple sold 48 million iPhones in the latest quarter and posted a near doubling of revenue in China, allaying concerns about its business in the world’s second largest economy. Twitter fell -1.5% while Akamai Technologies dropped -16.7% after both reported disappointing results. After the bell, GoPro dropped -15.2% following its results.

 

Asian stocks were mixed after the Federal Reserve signalled it’s prepared to raise rates as soon as December. The Nikkei 225 (+0.17%) gained, while the Hang Seng (-0.60%) and the S&P/ASX 200 (-1.28%) both decreased. Among the most actively traded stocks in Hong Kong were Gome, up +12.1%, Hong Kong Education International Investments up +12.4% and CCT Land unchanged. Nomura Holdings dropped -2.9% and Daiwa Securities Group lost -2.7% after each reported weaker than expected July – September profits. Precision Instruments added +3.1%, lifted by Hoya Corp which climbed +6.9% after announcing a rise in quarterly profits and a plan to buy back 14 million shares.