Morning Spread

Morning Spread

Monday 15th February 2016
IndexLevelChg (%)
UK Market5816.69+1.91
Dow Indust Avg15973.84+2.00
S&P 5001864.78+1.95
Nasdaq Composite4337.51+1.66
Nikkei 22516022.58+7.16
Hang Seng18918.14+3.27
IndexLevelChg (%)
Nymex 1m29.81+1.26
Gold Spot1209.36-2.31
GBP/USD1.4485+0.12
GBP/EUR1.2930+0.35
EUR/USD1.1203-0.47
USD/JPY113.95-0.62

European stocks opened sharply this morning on the back of gains in Asia where the Nikkei surged more than 7% and China moved to ease devaluation concerns. The ESTX 50 (+2.94%), UK markets (+1.78%), CAC 40 (+3.09%) and the Dax (+2.59%) all posted gains in early trading. Bank sector stocks were among the top sectorial gainers, extending Friday’s rebound, with sentiment helped by news that the European Central Bank is in talks to buy bundles of Italian bad bank loans as part of its asset purchase programme. Reckitt Benckiser Group rose +4.7% after stronger than expected full year sales. Orange added +3% after a report said a deal to take over rival Bouygues could be presented tomorrow.

 

US stocks advanced as financial, commodity related and other beaten down shares rebounded. The Dow Jones Industrial Average (+2.00%), S&P 500 (+1.95%) and the Nasdaq Composite (+1.66%) all gained. US oil prices settled 12.3% higher, boosting the S&P energy sector by 2.6%. JPMorgan jumped +8.3% after CEO Jamie Dimon bought more than $25 million of the bank’s stock. Financials have been the weakest performing sector this year. Recession fears have compounded concern about their exposure to the energy sector and expectations that global interest rates are unlikely to rise quickly. Wynn Resorts rose +15.8% after the casino operator reported strong quarterly profit.

 

Asian stocks headed for their biggest advance in almost seven years as Japanese shares rallied the most since the financial crisis amid increasing speculation that equities were oversold. The Nikkei 225 (+7.16%), Hang Seng (+3.27%) and the  S&P/ASX 200 (+1.64%) all rallied. Toyota Motor Corp added +9.6% as the yen weakened against the dollar. Mitsubishi UFJ Financial Group Inc, which had fallen 41% this year, jumped +8.7%. Rakuten Inc tumbled -1.3%after reporting full year profit slumped 37%. Dai-ichi Life Insurance Co and Japan Post Holdings Co surged more than +10% after both companies posted profit that beat their forecasts. Sumitomo Rubber Industries Ltd soared +18% after targeting a 3.8% gain in fiscal year operating profit.