Morning Spread

Morning Spread

Thursday 18th August 2016
IndexLevelChg (%)
UK Market6877.39+0.27
Dow Indust Avg18573.94+0.12
S&P 5002182.22+0.19
Nasdaq Composite5228.66+0.03
Nikkei 22516486.01-1.55
Hang Seng23023.16+0.98
IndexLevelChg (%)
Nymex 1m47.11+0.68
Gold Spot1350.42+0.12
GBP/USD1.3147+1.03
GBP/EUR1.1603-0.51
EUR/USD1.1330+0.51
USD/JPY100.09+0.22

European stocks rose this morning on speculation that central banks will remain accommodative. The ESTX 50 (+0.37%), CAC 40 (+0.37%), Dax (+0.60%) and the UK markets (+0.42%) all posted gains in early trading. Vestas Wind Systems A/S surged +12% after raising its annual guidance. NN Group NV, spun off by ING Groep NV through an initial public offering two years ago, rallied +4.8% as its Solvency II ratio, a measure of capital buffers, rose. Jyske Bank A/S advanced +4.2% after raising its share buyback program. DFDS A/S jumped +7.9% after posting earnings that beat projections. Airbus Group SE dropped -1.2% after Bank of America Corp lowered its rating on the shares to the equivalent of “sell”.

US stocks close slightly higher after minutes from the Federal Reserve’s last policy meeting showed voting members divided over whether to raise interest rates soon. The Dow Jones Industrial Average (+0.12%), S&P 500 (+0.19%) and the Nasdaq Composite (+0.03%) all increased. While policy makers agree that more economic data is needed before raising rates, some expect a hike will be needed soon, according to the minutes from the US central bank’s July 26-27 policy meeting. Shares of Target fell -6.4% and Lowe’s dropped -5.6% after they cut full year earnings forecasts. Cisco fell -1.3% after CRN reported the company is laying off employees. After the bell, Cisco edged even lower following its results and its announcement to lay off 5,500 employees, or nearly 7% of its work force.  

Asian stocks outside Japan rose after Federal Reserve meeting minutes showed officials were divided over the urgency to raise interest rates. The S&P/ASX 200 (-0.49%) and the Nikkei 225 (-1.55%) both declined, while the Hang Seng (+0.98%) increased. Shares in Tokyo slipped as the yen strengthened past 100 per dollar. Tencent jumped +5.2% after announcing that second quarter sales and profit beat analysts’ estimates after the operator of social network services splashed out on mobile games and content. Ping An, advanced +2.6% after saying its first half profit rose 18%. Lenovo climbed +2.8% after posting a 64% gain in first quarter profit as it cut costs and was helped by new Motorola smartphone models.