Morning Spread

Morning Spread

Tuesday 16th August 2016
IndexLevelChg (%)
UK Market6918.25-0.30
Dow Indust Avg18636.05+0.32
S&P 5002190.15+0.28
Nasdaq Composite5262.02+0.56
Nikkei 22516596.51-1.62
Hang Seng22910.84-0.09
IndexLevelChg (%)
Nymex 1m46.03+0.63
Gold Spot1350.00+0.79
GBP/USD1.2980-0.81
GBP/EUR1.1521+0.06
EUR/USD1.1266+0.76
USD/JPY100.36+0.87

European shares retreated this morning, weighed down by industrial stocks as several of them lowered their outlook for 2016. The ESTX 50 (-0.92%), CAC 40 (-0.80%), Dax (-0.90%) and the UK markets (-0.30%) all posted losses in early trading. Schindler Holding AG fell -2.6% after it cut the top end of its revenue growth outlook for the year as increasing uncertainty in the Chinese construction market and the recession in Brazil continues to hurt the company. Rotork fell -3.1% after HSBC cut the company to “reduce” from “hold”. Geberit rose +4.4% after it beat expectations with its second quarter results and struck a confident tone for its outlook moving forward. Antofagasta Plc climbed +3.2% after saying first half earnings rose and announcing an interim dividend of 3.1 cents a share.

All three major US stock indexes ended at all-time highs on Monday, extending their climb of the past few weeks as the dollar’s weakness boosted commodity related shares. The Dow Jones Industrial Average (+0.32%), S&P 500 (+0.28%) and the Nasdaq Composite (+0.56%) all increased. The S&P 500’s earnings recession that began in the third quarter of 2015 is on track to end in the fourth quarter. Estimates show profit growth of 8.3% for S&P 500 earnings in the fourth quarter. Xylem rose +3.9% after saying it would buy Sensus USA for about $1.7 billion in cash. Post Properties gained +9.4% after the company agreed to be bought by Mid-America Apartment Communities for about $3.88 billion. Mid-America’s shares fell -4.9%. Twitter rose +6.8% after the New York Times reported the company was in talks to bring its app to the Apple TV platform.

Most Asian stocks dropped as Japanese shares headed for second day of declines after the yen advanced toward 100 per dollar. The S&P/ASX 200 (-0.14%), Hang Seng (-0.09%) and the Nikkei 225 (-1.62%) all dropped. Cyberdyne Inc tumbled -6.8% after short-seller Citron Research said the company’s stock is poised to plunge. Sankyo Co slid -3.4% after SMBC Nikko Securities Inc cut its target price on the stock. Sony Corp lost -0.2% after rising by as much as 1.4% after Fitch Ratings Ltd revised its outlook on the company to “positive”, citing higher margins in its non-financial businesses and the management’s commitment to improve profitability.