Morning Spread

Morning Spread

Thursday 19th May 2016
IndexLevelChg (%)
UK Market6091.46-1.21
Dow Indust Avg17526.62-0.02
S&P 5002047.63+0.02
Nasdaq Composite4739.12+0.50
Nikkei 22516646.66+0.01
Hang Seng19694.33-0.67
IndexLevelChg (%)
Nymex 1m47.26-1.93
Gold Spot1254.22-0.34
GBP/USD1.4653-0.30
GBP/EUR1.3063+0.86
EUR/USD1.1217-0.56
USD/JPY110.21-0.43

European stocks fell after EgyptAir said a plane carrying more than 60 passengers and crew had gone missing over the Mediterranean. The ESTX 50 (-0.85%), CAC 40 (-0.61%), Dax (-1.28%) and the UK markets (-1.24%) all posted losses in early trading. Bayer AG tumbled -6.2% after Monsanto Co said it received an unsolicited takeover approach from the company. Technip SA jumped +12% after signing a memorandum of understanding with FMC Technologies for an all-stock merger to create a new company with an equity value of $13 billion. Thomas Cook Group Plc tumbled -16% after saying full year earnings will be at the lower end of analyst estimates, hurt by terror attacks in Brussels and unrest in Turkey. Credit Suisse Group AG and Deutsche Bank AG climbed more than +4%.

US stocks finished the session flat as the minutes from the Federal Reserve’s April meeting signalled a potential interest rate increase in the near term. The Dow Jones Industrial Average (-0.02%) and the S&P 500 (+0.02%) were pretty much unchanged, while the Nasdaq Composite (+0.50%) gained. Officials from the US central bank said it would be appropriate to raise interest rates in June if economic data points to stronger second quarter growth as well as firming inflation and employment. Financials, seen benefiting in a rising rate environment, were the best performing sector. JPMorgan gained +3.9% and Bank of America rose +4.9%. Target Corp fell -7.6% as it quarterly sales missed expectations.

Asian stocks fell following the release of minutes from the Federal Reserve’s April meeting. The S&P/ASX 200 (-0.61%) and the Hang Seng (-0.67%) both declined, while the Nikkei 225 (+0.01%) was flat. Insurers gained in Tokyo on the outlook for higher investment returns from an increase in interest rates, sending Dai-Ichi Life Insurance Co +2.8% higher. Suzuki Motor Corp jumped +3.5% after elaborating that its improper testing methods would not result in changes to the fuel efficiency ratings of its vehicles. Inpex Corp fell -5.9% and JX Holdings Inc dropped -2.8% as the threat of a stronger dollar sent oil futures tumbling.