Morning Spread

Morning Spread

Friday 19th February 2016
IndexLevelChg (%)
UK Market5983.13+0.19
Dow Indust Avg16413.43-0.25
S&P 5001917.83-0.47
Nasdaq Composite4487.54-1.03
Nikkei 22515967.17-1.42
Hang Seng19285.50-0.40
IndexLevelChg (%)
Nymex 1m30.47-0.97
Gold Spot1221.75-0.74
GBP/USD1.4275+0.45
GBP/EUR1.2880-0.16
EUR/USD1.1084-0.28
USD/JPY112.90+0.50

European shares fluctuated, with investors assessing valuations and corporate earnings. The ESTX 50 (-0.16%), CAC 40 (-0.04%) and the Dax (-0.25%) posted losses in early trading, while the UK markets (+0.14%) increased. Standard Life Plc rose +1.4% after reporting better than expected full year profit and disclosing a solvency II ratio of 162%. Allianz SE slid -2.9% after reporting fourth quarter profit that missed analyst estimates. Ingenico Group SA tumbled -14% after JPMorgan Chase & Co downgraded the company saying its 2016 earnings margin forecast is below the broker’s estimates. KBC Groep NV and Banca Monte dei Paschi di Siena SpA both rose more than +2.4%.

US stocks declined as Wal-Mart shares dragged on the market after a lacklustre earnings report and oil prices pulled back. The Dow Jones Industrial Average (-0.25%), S&P 500 (-0.47%) and the Nasdaq Composite (-1.03%) all retreated. Wal-Mart Stores Inc fell -3% after reporting a lower quarterly profit and gave a tepid sales outlook. The stock was the biggest percentage loser in the Dow. IBM rose +5% after Morgan Stanley upgraded the stock to “overweight”. Nvidia climbed +8.6% after reporting revenue that beat expectations. Dish Network fell -6.3% after it reported lower net income in 2015 amid a drop in pay-TV subscriptions. Perrigo dropped -10.2% after adjusted profit missed estimates. After the market closed, Nordstrom sank -7% after reporting lower than expected quarterly profit.

Asian shares retreated as a rally in oil prices reversed and investors remained cautious about the outlook for the global economy. The Nikkei 225 (-1.42%), Hang Seng (-0.40%) and the S&P/ASX 200 (-0.79%) were all negative. Casino operators weighed on the Hang Seng after MGM Resorts International posted a surprise fourth quarter loss. MGM China Holdings Ltd sank -7.8%, while Sands China Ltd fell -3.1% to lead losses on the Hang Seng. Inpex tumbled -9.4% for its lowest close on record. Toyota Motor Corp fell -2.9%. Tokyo Tatemono Co added +4.5% after Credit Suisse Group AG raised its rating on the developer.