Morning Spread

Morning Spread

Wednesday 10th August 2016
IndexLevelChg (%)
UK Market6848.41-0.04
Dow Indust Avg18533.05+0.02
S&P 5002181.74+0.04
Nasdaq Composite5225.48+0.24
Nikkei 22516735.12-0.18
Hang Seng22492.43+0.12
IndexLevelChg (%)
Nymex 1m42.11-1.54
Gold Spot1352.24+0.86
GBP/USD1.3048-0.31
GBP/EUR1.1705-0.10
EUR/USD1.1148+0.41
USD/JPY101.39+0.56

European shares dropped for the first time in over a week, dragged down by energy producers. The ESTX 50 (-0.08%), CAC 40 (-0.16%), Dax (-0.18%) and the UK markets (-0.04%) all posted losses in early trading. EON SE retreated -3.4% as it posted a first half loss because of charges linked to the listing of its Uniper unit. Novozymes A/S sank -8.1% as it reported profit that missed estimates and cut its sales outlook. Aurubis AG lost -3.5% after saying annual results will be lower year on year. Brenntag AG dropped -2.2% after the profit forecast of the world’s largest distributor of chemicals missed some analyst projections. Entertainment One Ltd rallied +6.9% after rejection a takeover offer.

US stocks rose despite weak oil prices offsetting gains in healthcare and technology shares. The Dow Jones Industrial Average (+0.02%), S&P 500 (+0.04%) and the Nasdaq Composite (+0.24%) all increased. Endo International jumped +21.8% after reporting it returned to profit in the second quarter. Valeant Pharmaceuticals surged +25.4% after reaffirming its earnings outlook for the year, despite reporting a wider second quarter loss. The company also said it is undergoing a restructuring. Chemours added +10.6% and Vivint gained +9.4% after both companies posted better than expected earnings. Gap sank -6.3%, leading retailers lower after reporting lower sales in the second quarter and in July. Kohl’s fell -4.2% and Target slid -3.2%.

Asian stocks retreated as Japanese shares dropped after the yen rebounded and as commodity companies led losses across the region. The S&P/ASX 200 (-0.16%) and the Nikkei 225 (-0.18%) both retreated, while the Hang Seng (+0.12%) increased. Wharf Holdings Ltd, Hong Kong’s largest mall operator, dropped -2.5% after posting a decline in net income. Hong Kong Exchanges & Clearing Ltd, Asia’s biggest exchange operator by market capitalisation, retreated -1.2% after saying first half earnings declined by 27% on lower securities and commodities trading. Japanese exporters declined due to the yen strengthening. Toyota dropped -1.1%, Honda declined -1.02% and Nissan was down -0.1%.