Morning Spread

Morning Spread

Wednesday 19th October 2016
IndexLevelChg (%)
UK Market6996.17-0.06
Dow Indust Avg18161.94+0.42
S&P 5002139.60+0.62
Nasdaq Composite5243.84+0.85
Nikkei 22516998.91+0.21
Hang Seng23266.79-0.55
IndexLevelChg (%)
Nymex 1m50.77+0.95
Gold Spot1262.510.00
GBP/USD1.2281+0.09
GBP/EUR1.1169-0.15
EUR/USD1.0997+0.06
USD/JPY103.47+0.36

European shares pared early gains this morning, after commodity related stocks initially led the market higher after prices of major industrial metals and crude oil rose on a softer dollar. The ESTX 50 (-0.04%), CAC 40 (-0.05%), Dax (-0.19%) and the UK markets (-0.23%) all posted losses in early trading. The European oil and gas index advanced +1.4% on currency moves and as some analysts said markets might not be as oversupplied as suggested by many, with global inventories rising less than expected. Rio Tinto, Randgold Resources, Fresnillo, Royal Dutch Shell and BP rose between +1.2% and +2.2%. Bureau Veritas fell -4.5% after the company cut its outlook for full year 2016 as weakness in the oil and gas and shipping markets weighed on its revenue.  

US stocks advanced amid solid earnings reports that put corporate profits on track to snap a four quarter streak of declines. The Dow Jones Industrial Average (+0.42%), S&P 500 (+0.62%) and the Nasdaq Composite (+0.85%) all increased. Of the 52 S&P 500 companies that have reported results to date for the third quarter, 81% have reported earnings that topped average analyst estimates, according to Thomsen Reuters. Third quarter earnings are now expected to show growth of 0.2%, which would mark an end to the US profit recession that began in the third quarter of 2015. UnitedHealth jumped +6.9% after quarterly results and forecast. Netflix was the biggest gainer on the S&P 500, rising more than +19% after posting quarterly results and much higher than expected subscriber growth. IBM fell -2.6% after reporting its 18th straight quarter of revenue decline.

Asian shares rose as a barrage of Chinese data confirmed the economy had stabilised on the back of government spending and a hot housing market, even if worries about debt continue to mount. The S&P/ASX 200 (+0.45%) and the Nikkei 225 (+0.21%) both advanced, while the Hang Seng (-0.38%) declined. Chinese GDP expanded 6.7% in the year to September, exactly as forecast. Private investment remained subdued with government spending and property strong. Sharp Corp jumped +11% after saying it expects significant improvement in annual profit. Mitsubishi Motors Corp advanced +7.9% after the Nikkei newspaper reported that Nissan Motor Co decided to appoint its CEO, Carlos Ghosn, as chairman of Mitsubishi Motors.