Morning Spread

Morning Spread

Monday 19th October 2015
IndexLevelChg (%)
UK Market6369.61-0.13
Dow Indust Avg17215.97+0.43
S&P 5002033.11+0.46
Nasdaq Composite4886.69+0.34
Nikkei 22518131.23-0.88
Hang Seng23075.61+0.04
IndexLevelChg (%)
Nymex 1m46.67-1.25
Gold Spot1172.96-0.37
GBP/USD1.5459-0.13
GBP/EUR1.3628+0.17
EUR/USD1.1343-0.04
USD/JPY119.38+0.05

European shares rose as positive earnings reports helped push equities higher. The ESTX 50 (+0.59%), CAC 40 (+0.39%) and the Dax (+0.71%) all posted gains in early trading, while UK markets (-0.04%) were flat. Metro shares rose +3% after saying it was optimistic for the Christmas trading period as its like-for-like sales rose +1.3% in the final quarter of its fiscal year. Deutsche Bank AG rose +2.5% after saying it’s reshuffling management in an effort to reshape and rebuild relations with regulators. Danone gained +2.2% after reporting third quarter sales that beat analysts’ estimates. Wincor Nixdorf AG surged +21% after Diebold Inc said its offered €1.57 billion to buy the company. Shire Plc lost -1.8% after US regulators asked for additional testing and information to approve a treatment for dry eye disease that the company has touted as a potential blockbuster.  

 

US stocks gained, lifted by a jump in General Electric shares and upbeat consumer sentiment data. The Dow Jones Industrial Average (+0.43%), S&P 500 (+0.46%) and the Nasdaq Composite (+0.34%) all increased. The University of Michigan’s preliminary index on consumer sentiment rebounded strongly in early October. GE shares rose +3.4% after reporting better than expected earnings. The stock was among the biggest boosts to the S&P 500 and Dow. Mattel jumped +6% and was the biggest percentage gainer in the S&P 500, even after its sales missed estimates. Honeywell fell -1.5% even though it also beat profit estimates. Grainger slumped -6.3% after results. Twitter rose +4.8% after Bloomberg reported that former Microsoft CEO Steve Ballmer owns a 4% stake in the company.

 

Asian stocks were mixed as investors awaited data on China’s economy. The Nikkei 225 (-0.88%) dropped while the Hang Seng (-0.04%) and the S&P/ASX 200 (+0.03%) were flat. Sanken Electric tumbled -9.9% after Mitsubishi UFJ Morgan Stanley cut its rating to “hold” from “buy” and slashed its share price target by 55%, citing slower earnings growth. Nippon Soda rose +14% as Nomura raised its recommendation to “buy” from “neutral”, citing a strong contribution to earnings from Novus, its US affiliate. China United Network Communications Ltd dropped -2.5%, halting a two day gain. Shanghai Wangsu Science & Technology Co retreated -3.1% paring a rally from the August low to 67%.