Morning Spread

Morning Spread

Wednesday 16th December 2015
IndexLevelChg (%)
UK Market6058.90+0.68
Dow Indust Avg17524.91+0.90
S&P 5002043.41+1.06
Nasdaq Composite4995.36+0.87
Nikkei 22519049.91+2.61
Hang Seng21701.21+2.01
IndexLevelChg (%)
Nymex 1m37.01-0.91
Gold Spot1065.49+0.40
GBP/USD1.5005+0.34
GBP/EUR1.3733-0.36
EUR/USD1.0927+0.02
USD/JPY121.97-0.17

European shares were mixed this morning as investors awaited the outcome of a crucial rate setting meeting of the US Federal Reserve for hints about the markets near term direction. The ESTX 50 (-0.22%), CAC 40 (-0.25%) and the Dax (-0.03%) all posted losses in early trading, while the UK markets (+0.42%) increased. Casino surged +7% after the French retailer said it plans to raise more than €2 billion in 2016 by selling part of its real estate portfolio in Thailand and Colombia as well as it Vietnam operations. Dixons Carphone Plc added +2.5% after posting earnings that beat analyst estimates. Pearson Plc gained +4.3% after Exane BNP Paribas raised its rating to “outperform”, citing an all-time low valuation.  

 

US stocks rose broadly ahead of Wednesday’s interest rate decision from the Federal Reserve. The Dow Jones Industrial Average (+0.90%), S&P 500 (+1.06%) and the Nasdaq Composite (+0.87%) all increased. Higher underlying inflation in November cemented market bets that the Fed will raise rates after its two day meeting. Bank stocks, which will likely benefit from higher rates, were among the market leaders with a 2.4% advance on the S&P financial sector index. Goldman Sachs’ +3.2% rise provided the biggest boost to the Dow industrials. JPMorgan, Morgan Stanley, Citigroup and Bank of America were each up more than +2.7%. Exxon jumped +4.4%, while Chevron rose +3.8% after crude prices recovered from their steep fall on Monday. Valeant shares were up +16.4% after signing a distribution deal with Walgreens. 3M was down -6% after cutting its 2015 profit outlook.

 

Asian stocks as investors awaited the Federal Reserve’s first rate increase in almost a decade. The Nikkei 225 (+2.61%), Hang Seng (+2.01%) and the S&P/ASX 200 (+2.42%) all rallied. PetroChina Co and China Petroleum & Chemical Corp, which fell to their lowest levels in at least six years this week, surged at least +5% after the Chinese government signalled it won’t cut fuel prices. Noble Group Ltd shares rallied +7.7% after Asia’s largest commodities trader said that it was in advanced talks to sell the rest of its agriculture unit, potentially bolstering its drive to raise cash and avoid a credit rating cut to junk.