Morning Spread

Morning Spread

Wednesday 15th June 2016
IndexLevelChg (%)
UK Market5977.69+0.91
Dow Indust Avg17674.82-0.33
S&P 5002075.32-0.18
Nasdaq Composite4843.55-0.10
Nikkei 22515919.58+0.38
Hang Seng20467.52+0.39
IndexLevelChg (%)
Nymex 1m48.21-0.58
Gold Spot1281.95-0.30
GBP/USD1.4202-0.38
GBP/EUR1.2654+0.29
EUR/USD1.1223+0.09
USD/JPY106.34-0.25

European shares rose as traders speculated that the Federal Reserve’s latest policy review will offer encouragement to beleaguered markets. The ESTX 50 (+1.81%), CAC 40 (+1.715), Dax (+1.38%) and the UK markets (+1.14%) all posted gains in early trading. Glencore Plc rose +3.4% as metals advanced. Inditex SA gained +2.3% after reporting better than expected first quarter profit. Zodiac Aerospace jumped +9.3% after reporting better than estimated third quarter sales. Luxottica Group SpA gained +1.7% after Credit Suisse AG recommended buying the stock. Aveva Group Plc tumbled -13% after talks for Schneider Electric SE to buy a majority stake in the company ended without a deal. Schneider gained +3.4%.

 

US stocks declined as central bank policymakers weighed the health of the US economy and investors worried about an upcoming vote in the UK on whether to leave the European Union. Dow Jones Industrial Average (-0.33%), S&P 500 (-0.18%) and the Nasdaq Composite (-0.10%) all retreated. Synchrony Financial plunged -13% after disclosing expectations of higher charge off rates. Baidu Inc fell -1.7% after it cut its quarterly revenue forecast, citing lower medical advertising as Chinese regulators have been increasing scrutiny of that sector. Alibaba Group Holding Ltd gained +3.1% after the company’s founder said a closely watched sales metric may not remain the standard. Yahoo Inc also rose +2.6%.

 

Asian shares were volatile as a US Federal Reserve policy decision and Brexit worries kept investors on edge.  The S&P/ASX 200 (-1.08%) dropped, while the Hang Seng (+0.39%) and the Nikkei 225 (+0.38%) both advanced. Virgin Australia tumbled -11.86% after the company said it plans to raise $625 million through an equity rights issue, which would bring its recent fund raising efforts to about 1 billion Australian dollars. Under the rights issue, stock will be offered at $0.21 a share, a sharp discount to the close at $0.295. Japanese exporters rebounded on the back of a weaker yen, Canon, Honda Motor, Nissan, Mazda, Sony, Toyota and Panasonic rose 1-2%. Toshiba jumped +7.7%.