Morning Spread

Morning Spread

Wednesday 13th July 2016
IndexLevelChg (%)
UK Market6669.46-0.17
Dow Indust Avg18347.67+0.66
S&P 5002152.14+0.70
Nasdaq Composite5022.82+0.69
Nikkei 22516231.43+0.84
Hang Seng21322.37+0.46
IndexLevelChg (%)
Nymex 1m46.24-1.20
Gold Spot1341.36+0.62
GBP/USD1.3240+0.30
GBP/EUR1.1988+0.12
EUR/USD1.1045-0.42
USD/JPY104.27+0.61

European shares mixed this morning, after earlier inching closer to levels before the Brexit vote. The ESTX 50 (-0.22%), Dax (-0.32%) and the UK markets (-0.22%) all posted losses in early trading, while the CAC 40 (+0.08%) was up. Miners led gains among industry groups, with Anglo American Plc and Glencore Plc up more than +2%. Burberry Group Plc rose +2.2% after it reported first quarter retail sales that beat analysts’ estimates. Accor SA added +3.8% after announcing plans to separate its HotelInvest unit and eventually sell a majority stake in the subsidiary to free up funds for the parent company to expand and improve existing lodgings. Nokia rose +4.4% after raising its sales forecast and announced a licensing agreement with Samsung.

 

US stocks rallied, with a sharp rebound in crude prices boosting energy shares, while the Nasdaq turned positive for the year. The Dow Jones Industrial Average (+0.66%), S&P 500 (+0.70%) and the Nasdaq Composite (+0.69%) all increased. Cyclical sectors like technology, materials and energy posted the largest gains on the S&P, backed by the view that the US economy, despite a slow start to the year, is on solid footing. Alcoa cemented hopes for better earnings as its profit and sales both beat market expectations. The stock closed +5.4% up. United Continental jumped +8.8% after saying its quarterly passenger unit revenue would drop less than expected. Seagate jumped +21.8% on strong preliminary results. Western Digital rose +4.8%.

 

Asian stocks rose as Japanese shares erased their Brexit losses after the yen extended declines, while commodity producers rose with oil. The S&P/ASX 200 (+0.66%), Hang Seng (+0.46%) and the Nikkei 225 (+0.84%) all increased. China Petroleum, also known as Sinopec, climbed +1.6% in Hong Kong and China Oilfield Services Ltd gained +1.3% after US crude futures jumped 4.6%. China Construction Bank Corp and China Citic Bank Corp, whose H shares offer a dividend yield of at least 5%, added +1.3%. Both stocks are valued at less than 5.1x their reported earnings. Bestway Marine climbed +2.4%, while Avic Aero-Engine Controls Co rose +1.2%.