Morning Spread

Morning Spread

Thursday 18th February 2016
IndexLevelChg (%)
UK Market5991.17-0.65
Dow Indust Avg16453.83+1.59
S&P 5001926.82+1.65
Nasdaq Composite4534.07+2.21
Nikkei 22516196.80+2.28
Hang Seng19363.08+2.32
IndexLevelChg (%)
Nymex 1m31.27+1.99
Gold Spot1207.47-0.09
GBP/USD1.4314-0.01
GBP/EUR1.2853+0.10
EUR/USD1.1138-0.07
USD/JPY113.70+0.46

European stocks were negative this morning, with some disappointing company results putting pressure on the market. The ESTX 50 (-0.11%), UK markets (-0.64%), CAC 40 (-0.26%) and the Dax (-0.15%) all posted losses in early trading. Nestle dropped -4.3% after saying it expected softer pricing and growth in line with last year in 2016 as full year organic growth of 4.2% fell short of expectations. KBC also fell -4% after reporting a fourth quarter net profit below expectations as it took an impairment on its operations in Bulgaria and Slovakia. Air France-KLM rose +6.5% after beating forecasts with a return to profit last year, helped by a drop in fuel prices and growth in passenger traffic.

US stocks gained, led by energy shares as oil prices jumped, while better than expected economic data helped alleviate fears over growth. The Dow Jones Industrial Average (+1.59%), S&P 500 (+1.65%) and the Nasdaq Composite (+2.21%) all increased.  Oil prices rose 7% after Iran voiced support for a Russia-Saudi led move to freeze production. Data also showed US industrial production in January rose by the most in 14 months.  Kinder Morgan rose +10% and led a rally in infrastructure tied companies after Berkshire Hathaway disclosed a stake in the pipeline operator. Priceline closed +11.2% higher after reporting profit that beat expectations. Fossil surged +28.6% after quarterly results beat estimates.

Asian stocks rose as crude oil extended gains on hopes that big producers will cap output, improving investor sentiment for riskier assets. The Nikkei 225 (+2.28%), Hang Seng (+2.32%) and the S&P/ASX 200 (+2.25%) all advanced.  Laox Co Ltd soared +15% after reporting a 51% year on year rise in domestic all store sales. The retailer is popular with foreign tourists and investors look at its performance as an indicator of inbound tourist spending.  Toshiba Corp added +3.5% after Kyodo News reported the company is in talks to sell its white goods business to Arcelik AS. Yokogawa Electric Corp dropped -4.3% after offering a 69% premium to buy KBC Advanced Technologies Plc.  Inpex Coro jumped +6.1% and Toyota Motor Corp rose +1.7%.