Morning Spread

Morning Spread

Monday 12th September 2016
IndexLevelChg (%)
UK Market6674.64-1.56
Dow Indust Avg18085.45-2.13
S&P 5002127.81-2.45
Nasdaq Composite5125.91-2.54
Nikkei 22516672.92-1.73
Hang Seng23290.60-3.36
IndexLevelChg (%)
Nymex 1m45.21-1.46
Gold Spot1329.25+0.10
GBP/USD1.3272-0.04
GBP/EUR1.1809-0.04
EUR/USD1.1239+0.05
USD/JPY102.18+0.50

European stocks declined this morning amid investor concern about central bank’s willingness to continue supporting economic growth with loose monetary policy. The ESTX 50 (-2.08%), CAC 40 (-2.08%), Dax (-2.00%) and the UK markets (-1.56%) all posted losses in early trading. Linde AG tumbled -8.4% after saying it terminated talks for a combination with Praxair Inc that would have created the world’s largest supplier of industrial gases. RWE AG fell -2.9% after confirming plans for an initial public offering of Innogy SE shares in the fourth quarter. SVG Capital Plc jumped +14% after HarbourVest Global Private Equity Ltd offered to buy it for about £1 billion.

US stocks dropped as investor nervousness increased following a nuclear test by North Korea and Federal Reserve official’s comments lifted rate increase bets. The Dow Jones Industrial Average (-2.13%), S&P 500 (-2.45%) and the Nasdaq Composite (-2.54%) all decreased. Kroger’s rose +0.6%, paring earlier losses after giving a disappointing outlook. Outlooks from Sprouts Farmers Market Inc and SuperValu Inc earlier last week also disappointed investors. Dow Chemical Co dropped -1.62% and DuPont Co lost -1.79% after a review deadline for the proposed merger between the two companies by the European Union’s antitrust regulator has been suspended.

Asian stocks followed US shares lower, as policy officials at central banks signalled a reluctance to extend stimulus. The S&P/ASX 200 (-2.24%), Hang Seng (-3.36%) and the Nikkei 225 (-1.73%) all dropped. Samsung Electronics Co tumbled -7% in Seoul after US regulators and company warned users of its Note 7 smartphones to immediately turn off and stop charging them. Cautions were issued after dozens of the phones had batteries that caught fire or exploded. China Life Insurance Co dropped -4.7%, pacing Chinese insurers lower and China Construction Bank Corp fell more than -4.6%.