Morning Spread

Morning Spread

Thursday 18th December 2014
IndexLevelChg (%)
UK Market6371.74+0.56
Dow Indust Avg17356.87+1.69
S&P 5002012.89+2.04
Nasdaq Composite4644.31+2.12
Nikkei 22517210.05+2.32
Hang Seng22832.21+1.09
IndexLevelChg (%)
Nymex 1m56.99+0.92
Gold Spot1198.79+0.76
GBP/USD1.5624+0.19
GBP/EUR1.2689+0.62
EUR/USD1.2313-0.81
USD/JPY118.65-0.86

European shares climbed on confidence over global growth amid central bank stimulus. The ESTX 50 (+1.78%), UK markets (+0.47%), CAC 40 (+1.69%) and the Dax (+1.76%) all posted gains in early trading. Banks accounted for most of the advance. Raiffeisen Bank International AG jumped +8.2% and ING Groep NV rose +2.9%. Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA added more than +1.5%. Swiss companies rallied. Novartis increased +1.9% and Roche gained +1.5%. ABB Ltd added +1.8% after saying it will propose former Royal Dutch Shell Plc CEO Peter Voser to become chairman after Hubertus von Gruenberg decided not to stand for re-election. Randgold and Anglo American climbed more than +1%, following their peers in Europe higher. Shire Plc added +2.7% as Citigroup Inc said the company’s speculated takeover of NPS Pharmaceuticals Inc would drive 2016-2019 earnings accretion of as much as 13%. London Stock Exchange Group Plc rose +2.1% after reporting an annual increase in trading activity.

 

US stocks jumped the most since 2013, erasing about half their December losses, as energy shares rebounded and the Federal Reserve said it will be patient on the timing of interest rate increases. The Dow Jones Industrial Average (+1.69%), S&P 500 (+2.04%) and the Nasdaq Composite (+2.12%) all posted gains in early trading. Noble Energy Inc rose +10% and Nabors Industries Ltd surged +9.3%, while Newfield Exploration Co and Transocean Ltd added +8.5%. Exxon Mobil Corp and Chevron added at least +3%. McDonald’s Corp rose +3.3% after Bill Ackman said the company could be managed better. FedEx Corp lost -3.7% after quarterly profit missed analysts’ estimates. Cliffs Natural Resources Inc retreated -5.7% after Credit Suisse said the company will need to be recapitalised within the next two years and near term earnings aren’t sufficient to support its debt load. The broker also cut its share price target to $1 from $10.

 

Asian stocks rose after the Federal Reserve pledged patience on interest rate increases and the yen weakened, boosting Japanese equities. The Nikkei 225 (+2.32%), Hang Seng (+1.09%) and the S&P/ASX 200 (+0.95%) all advanced. Toyota Motor Corp gained +1.5% in Tokyo as the yen held losses after yesterday dropping the most against the dollar in six weeks. Honda Motor Co gained more than +1%. Tencent Holdings Ltd jumped +6.3% in Hong Kong amid signs the internet stock was oversold. Nippon Suisan Kaisha Ltd jumped +7.2%. Shiseido dropped -4.3% after Shiseido President Masahiko Uotani said the company will buy brands aggressively, and will also close 28 of its smaller brands.