Morning Spread

Morning Spread

Thursday 19th March 2015
IndexLevelChg (%)
UK Market6963.63+0.27
Dow Indust Avg18076.19+1.27
S&P 5002099.50+1.22
Nasdaq Composite4982.83+0.92
Nikkei 22519476.56-0.35
Hang Seng24468.89+1.45
IndexLevelChg (%)
Nymex 1m43.17-3.34
Gold Spot1166.27-0.11
GBP/USD1.4875-1.00
GBP/EUR1.3945+0.84
EUR/USD1.0667+0.08
USD/JPY120.58+0.35

European stocks climbed after comments from the Federal Reserve indicated it won’t be in a rush to raise interest rates. The ESTX 50 (+0.16%), UK Markets (+0.40%) and the CAC 40 (+0.14%) all posted gains in early trading, while the Dax (0.00%) was flat. HeidelbergCement AG climbed +2% after cutting debt more than analysts expected, even without the added bonus of disposal proceeds. Gold miners were boosted by an advance in the price of gold following the Federal Reserve statement. The Fed’s cautious tone pushed down the price of the dollar on currency markets, which in turn boosted the comparative appeal of gold. Fresnillo rose +3.1% and was among the best performing UK stocks in percentage terms. Rival miner Randgold also rose +1.4%. Next fell -5.4% after the company’s cautious outlook took the shine off a 12.5% rise in annual profits.   

 

US stocks rallied after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade. The Dow Jones Industrial Average (+1.27%), S&P 500 (+1.22%) and the Nasdaq Composite (+0.92%) all advanced. The Federal Reserve dropped its pledge to be “patient” in deciding when to begin raising rates, but it cut its interest rate projections over the next few years and downgraded its outlook for the US economy. Oracle rose +2.9% despite posting flat third quarter revenue and slightly lower profit. However, it raised its quarterly dividend 25% to 15 cents a share. A lock-up period in Alibaba shares expired yesterday, with a larger one expiring in September. The stock hit a high of $120 in November and closed yesterday at $84.59, about 24% about its IPO price. The shares were finished the session flat, just moving +0.1%.

 

Asian stocks rose after the Federal Reserve said data suggests US economic growth has moderated and officials indicated interest rates will rise at a slower pace than previously forecast. The Hang Seng (+1.45%) and the S&P/ASX 200 (+1.86%) both gained, while the Nikkei 225 (-0.35%) decreased. Nintendo Co continued to rise, surging +12% and jumping +36% over the past two days on its plans to develop game titles for mobile devices made by other companies. Myer Holdings Ltd slumped -10% as profit dropped. Honda Motor Co, which gets about 84% of its revenue abroad, declined -1% after the yen gained against the dollar. Aeon Financial Service Co dropped -4.7% after Credit Suisse Group AG cut its rating on the stock.