Morning Spread

Morning Spread

Monday 14th December 2015
IndexLevelChg (%)
UK Market6000.50+0.80
Dow Indust Avg17265.21-1.76
S&P 5002012.37-1.94
Nasdaq Composite4933.47-2.21
Nikkei 22518883.42-1.80
Hang Seng21309.85-0.72
IndexLevelChg (%)
Nymex 1m35.35-0.76
Gold Spot1067.17-0.61
GBP/USD1.5168+0.30
GBP/EUR1.3849-0.01
EUR/USD1.0953-0.30
USD/JPY121.13-0.10

European shares were positive this morning as a sell-off triggered by China concerns and tumbling oil prices ran out of steam. The ESTX 50 (+0.86%), UK markets (+0.84%), CAC 40 (+1.11%) and the Dax (+0.52%) all posted gains in early trading. Vestas Wind rose +2.5%, Nordex added +3.6% and Gamesa gained +1.3% following the landmark climate deal in Paris. South Africa exposed Old Mutual surged +10% after the rand advanced following the appointment of a new finance minister. Telecom Italia rose +1.9% as a plan to covert saving shares into ordinary stock was seen at risk after top investor Vivendi said it would abstain from voting in favour of the move. BG Group Plc climbed +2.1% after Royal Dutch Shell Plc got clearance from antitrust authorities in China for its takeover.

 

US stocks dropped as plunging oil prices compounded investor nervousness on expectations for the first US interest rate rise in nearly a decade. The Dow Jones Industrial Average (-1.76%), S&P 500 (-1.94%) and the Nasdaq Composite (-2.21%) all retreated. Oil dragged down the market as whole, as investors worried whether a weakness in commodities signalled a broader slowdown. WTI lost -10.9% for the week to post its third straight negative week. The Alerian MLP ETF, which tracks large and mid-cap energy master limited partnerships, ended down -6.7%, off session lows but down 41% for the year so far. Both DuPont and Dow Chemical shares were down following a deal valuing the combined entity at $130 billion, falling -5.5% and -2.8% respectively.

 

Asian stocks fell and China’s yuan hit fresh 4 ½ year lows as plunging oil prices added to investors’ nervousness about riskier assets ahead of an expected US rate rise later this week. The Nikkei 225 (-1.80%), Hang Seng (-0.72%) and the S&P/ASX 200 (-2.01%) all dropped. China’s decision to loosen its grip on the yuan and allow slow but steady depreciation in recent weeks had added to concerns that the economy may be more fragile than expected. Fosun International and Shanghai Fosun Pharmaceutical (Group) Co slumped -9.5% and -12% respectively, even though Fosun Chairman Guo Guangchang made his first public appearance since reports he had gone missing last week. Jiangxi Copper Co surged +6.4%, Wuhan Iron & Steel Co surged +3.9% and Aluminium Corp of China Ltd rose +3.4% after the CEO of MMG Ltd said copper prices should recover next year as cutbacks and higher costs create a tighter market.