Morning Spread

Morning Spread

Monday 1st August 2016
IndexLevelChg (%)
UK Market6735.51+0.16
Dow Indust Avg18432.24-0.13
S&P 5002173.60+0.16
Nasdaq Composite5162.13+0.14
Nikkei 22516634.77+0.40
Hang Seng22136.18+1.12
IndexLevelChg (%)
Nymex 1m41.39-0.50
Gold Spot1349.68-0.10
GBP/USD1.3222+0.06
GBP/EUR1.1836-0.04
EUR/USD1.1171-0.03
USD/JPY102.32-0.25

European stocks rose this morning as banks surged after stress tests showed most of them would keep an adequate level of capital in a crisis. The ESTX 50 (+0.31%), CAC 40 (+0.38%), Dax (+0.74%) and the UK markets (+0.36%) all posted gains in early trading. Banca Monte dei Paschi di Siena SpA rallied +8.5%, despite performing the worst in the regulators’ exam. It said it plans to sell shares if it can offload a bad-loan portfolio. Amundi SA jumped +7.3% after reporting a rise in second quarter profit with further asset inflows. Credit Argicole SA, its majority owner advanced +0.7%. Air Liquide SA dropped -2.1% after saying earnings fell in the first half of the year, missing analysts’ estimates.

US stocks rose as gains in technology companies such as Alphabet and Amazon more than made up for losses in energy shares. The S&P 500 (+0.16%) and the Nasdaq Composite (+0.14%) both increased, while the Dow Jones Industrial Average (-0.13%) declined. US GDP in the second quarter grew at a 1.2% rate, coming in below expectations for a rise of 2.6% and fuelling arguments the Federal Reserve may not need to raise interest rates anytime soon. Alphabet jumped +3.33% after posting strong quarterly revenue growth, while Amazon.com added +0.82% after giving an upbeat forecast for the current quarter. However, the Dow was dragged down by a -1.48% drop in McDonald’s and a 1.39% fall in Exxon, which reported a lower than expected quarterly profit.

Asian shares gained after disappointing US economic growth data reduced expectations that the US Federal Reserve will raise interest rates in the next few months. The S&P/ASX 200 (+0.45%), Hang Seng (+1.09%) and the Nikkei 225 (+0.40%) all increased. NEC Corp sank -11% after posting about 30 billion yen in operating losses for the second quarter on lack of growth in developing markets and the domestic economy. Sony Corp rose +1.7% after the company surprised analysts by posting a profit of 21.2 billion yen last quarter. Analysts had expected a 39 billion yen loss. Panasonic Corp declined -7% after reporting profit for the second quarter that missed analyst estimates.