Morning Spread

Morning Spread

Wednesday 18th May 2016
IndexLevelChg (%)
UK Market6140.87-0.44
Dow Indust Avg17529.98-1.02
S&P 5002047.21-0.94
Nasdaq Composite4715.73-1.25
Nikkei 22516644.69-0.05
Hang Seng19826.41-1.45
IndexLevelChg (%)
Nymex 1m48.11-0.41
Gold Spot1271.05-0.62
GBP/USD1.4410+0.43
GBP/EUR1.2789+0.13
EUR/USD1.1268-0.56
USD/JPY109.38-0.31

European stocks fell as investors considered the possibility of the Federal Reserve increasing interest rates sooner than had been expected. The ESTX 50 (-0.21%), CAC 40 (-0.27%), Dax (-0.28%) and the UK markets (-0.43%) all posted losses in early trading. A US Federal Reserve policymaker said he would push for an interest rate hike in June or July while two others still saw up to three rate increases this year, leaving the door open to a change in monetary policy relatively soon. Burberry Group Plc dropped -2% after posting a seconf straight drop in annual earnings and announced plans to save £100 million a year. Kuka AG jumped +31% after Midea Group Co offered to raise its stake in the company. Sonova slumped -5.5% after missing its full year sales and profit targets.

 

US stocks retreated as investors boosted their bets on the Federal Reserve raising rates later this year. The Dow Jones Industrial Avearge (-1.02%), S&P 500 (-0.94%) and the Nasdaq Composite (-1.25%) all decreased. US consumer prices recorded their biggest increase in more than years in April as petrol and rents rose. The data pointed to a steady inflation build-up that could give the Fed ammunition to raise interest rates later this year. AbbVie fell – 3.5% after Coherus said the U.S. Patent and Trademark Office agreed to review its petition to make a copy of AbbVie’s top-selling treament. Coherus jumped +15.9%. Home Depot boosted its sales and profit forecasts for the year after a stronger-than-expected first quarter. But its shares, which have outperformed the consumer discretionary sector over the past year and last week touched an all-time high, dropped -2.5% and were among the biggest drags on the S&P 500 and the Dow.

 

Asian stocks fell as US reports bolstered the case for higher interest rates. The S&P/ASX 200 (-0.74%) and Hang Seng (-1.45%) and the Nikkei 225 (-0.05%) all retreated. Suzuki Motor Corp plunged -9.4% in Tokyo after saying it used an improper method to test the fuel efficiency of its vehicles. NTT Docomo Inc and KDDI Corp dropped at least -1.1% after Bloomberg News reported the government may take further steps to pressure them to offer cheaper plans. Asia Pacific Telecom Co surged +7.1% after the company’s chairman told the Taipei Times it planned to create a robotic services unit.