Morning Spread

Morning Spread

Thursday 17th December 2015
IndexLevelChg (%)
UK Market6144.69+1.38
Dow Indust Avg17749.09+1.28
S&P 5002073.07+1.45
Nasdaq Composite5071.13+1.52
Nikkei 22519353.56+1.59
Hang Seng21872.06+0.79
IndexLevelChg (%)
Nymex 1m35.24-0.79
Gold Spot1067.85-0.42
GBP/USD1.4954+0.38
GBP/EUR1.3776+0.28
EUR/USD1.0855-0.65
USD/JPY122.41-0.46

European stocks climbed, following global equities, after the Federal Reserve met investor expectations by raising rates for the first time in almost a decade. The ESTX 50 (+2.52%), UK markets (+1.14%), CAC 40 (+2.31%) and the Dax (+2.55%) all posted gains in early trading. Banco Santander SA and BNP Paribas SA rose at least +2.5%, while an advance of at least +2.3% in ArcelorMittal and Antofagasta Plc led a gauge of miners higher for a third day. AstraZeneca Plc added +1.7% after agreeing to buy a 55% stake in Acerta Pharma BV for $4 billion. SAP SE climbed +1.4% after peer Oracle Corp reported quarterly earnings that beat estimates. London Stock Exchange Group Plc advanced +1.8% after saying it had a good performance across businesses. Old Mutual Plc jumped +6.55%.

 

US stocks rallied after the Federal Reserve announced it is raising its key policy rate for the first time in nearly a decade in a sign of confidence in the US economy. The Dow Jones Industrial Average (+1.28%), S&P 500 (+1.45%) and the Nasdaq Composite (+1.52%) all increased. Markets judged the Fed’s statement to be dovish, supportive of risk assets including equities. Defensive sectors of the market, recently hit in anticipation of the rate hike, were the best performers. The US Central bank said the economy is expected to continue to perform well and a slight increase in the fed funds rate was appropriate, while it recognised that even after this rise monetary policy remains accommodative. Honeywell International Inc jumped +5.7% after forecasting sales and earnings above analysts’ expectations. General Electric Co rallied +2.2% after projecting the return of about $26 billion in cash to investors through dividends and stock repurchases in 2016. After the bell, FedEx jumped +5% after reporting better than expected quarterly net profit.

 

Asian stocks rose after the Federal Reserve raised US interest rates for the first time in almost a decade and signalled a gradual pace for future increases. The Nikkei 225 (+1.59%), Hang Seng (+0.79%) and the S&P/ASX 200 (+1.46%) all advanced. Marui Group Co advanced +6.8%, pacing gains among Japanese retailers after data showed foreign visitors to the country continued to increase in November. Sino-Ocean Land Holdings Ltd gained +0.2% after saying in an exchange filling that Anbang Insurance Group had raised its stake in the company to 30% by acquiring shares worth $426 million this month.