Morning Spread

Morning Spread

Wednesday 17th June 2015
IndexLevelChg (%)
UK Market6715.19+0.08
Dow Indust Avg17904.48+0.64
S&P 5002096.29+0.57
Nasdaq Composite5055.55+0.51
Nikkei 22520219.27-0.19
Hang Seng26753.79+0.70
IndexLevelChg (%)
Nymex 1m60.61+1.07
Gold Spot1179.46-0.23
GBP/USD1.5728-0.60
GBP/EUR1.3960+0.36
EUR/USD1.1267+0.23
USD/JPY123.75-0.28

European stocks declined, amid continued debate over Greece’s fate, and speculation the Federal Reserve will signal a slow pace of monetary tightening. The ESTX 50 (-0.04%), UK markets (-0.05%), CAC 40 (-0.18%) and the Dax (-0.13%) all posted losses in early trading. Faurecia SA dropped -2.1% as Credit Suisse Group AG cut its 2015-2017 earnings estimates for auto suppliers because of weakness in the Chinese market. Telecom Italia SpA added +3.4% after it was reported that Vivendi SA may increase its stake in the company to as much as 15%. Berkeley Group Holdings Plc rose +8.6% after posting a 45% jump in full year earnings. J Sainsbury Plc slipped -1.2% after Credit Suisse Group AG rated the shares “underperform”, citing margin pressure.

 

US stocks rose with merger activity more than offsetting market concerns as Greece struggles to avoid a default on its debt. The Dow Jones Industrial Average (+0.64%), S&P 500 (+0.57%) and the Nasdaq Composite (+0.51%) all increased. Consumer staples led the way, with Coty shares closing up +19.3%. Coty is on track to buy Procter & Gamble’s beauty business in a $12 billion deal. P&G shares closed up +1.3%. In other merger news, shares of NCR Corp hit a 14 month high after Reuters reported Blackstone and Carlyle are making a joint bid for NCR in what would be year’s biggest leveraged buyout at more than $10 billion, including debt. NCR closed up +10.7% while Blackstone fell -0.6% and Carlyle rose +0.8%.

 

Asian stocks rose as investors awaited a Federal Reserve decision on monetary policy. The Hang Seng (+0.78%) and the S&P/ASX 200 (+1.08%) both increased, while the Nikkei 225 (-0.19%) decreased. Commonwealth Bank of Australia rose +2.3% after Warren Buffett told The Age newspaper he may buy a stake in banks trading in Sydney. Bank of Communications climbed +1.7% in Hong Kong after the bank said it will explore adding private capital and giving strategic investors a more effective role. Morinaga & Co added +4.6% after a brokerage raised its rating on the stock. Kose Corp jumped +4% after Credit Suisse Group AG boosted its share price outlook on the company.