Morning Spread

Morning Spread

Tuesday 1st December 2015
IndexLevelChg (%)
UK Market6390.50+0.54
Dow Indust Avg17719.92-0.44
S&P 5002080.41-0.46
Nasdaq Composite5108.67-0.37
Nikkei 22520012.40+1.34
Hang Seng22381.35+1.75
IndexLevelChg (%)
Nymex 1m42.08+1.03
Gold Spot1070.79+0.57
GBP/USD1.5085-0.33
GBP/EUR1.4235-0.02
EUR/USD1.0597+0.35
USD/JPY123.09+0.05

European stocks were mixed this morning, as UK listed banks gained after none failed the latest Bank of England stress tests on the sector. The ESTX 50 (-0.14%), CAC 40 (-0.32%) and the Dax (-0.17%) all posted losses in early trading, while the UK markets (+0.49%) gained. Standard Chartered, Lloyds Group, Bank of Scotland, HSBC and Barclays rose +1.4% to +2.7%, helping the European banking index gain more than 1%, after the BoE said major UK banks did not have to take any action. The BoE found capital ratios are not far from what’s needed in the longer term, potentially opening the way for higher dividends. TUI Group rose +3.3% after its largest shareholder increased his stake in the European travel and tourism group to 15.02% from about 13%. Linde fell -11% after cutting its 2017 profit target, citing slower industrial production growth weighing on its industrial gases unit.

 

US stocks retreated, led by declines in health and consumer shares, as investors braced for policy news from central banks. The Dow Jones Industrial Average (-0.44%), S&P 500 (-0.46%) and the Nasdaq Composite (-0.37%) all declined. The S&P health sector’s -1.3% fall led decliners, with biotech stocks down the most. Consumer staples were down -1%. Other US data expected this week includes November manufacturing and auto sales reports. Retail stocks were down following Black Friday, including Wal-Mart Stores Inc -1.8%, and Macy’s Inc -2.3%. Sales on Cyber Monday, the busiest day of the year for internet shopping, were up 14% from a year earlier, according to data. Staples fell -1.9% after the New York Post reported US antitrust regulators were preparing to block Staples’ acquisition of smaller rival Office Depot. Office Depot was down -2.4%.

 

Asian stocks rose following yesterday’s selloff as investors focused on the positives from Chinese data that showed manufacturing contracting to the lowest in three years. The Nikkei 225 (+1.34%), Hang Seng (+1.75%) and the S&P/ASX 200 (+1.93%) all rallied. Six interest rate cuts over the past year haven’t been enough to spur a recovery in Chinese manufacturing, which has continued to weaken, while activity in the services sector has shown more strength. Chinese property companies rallied the most in three months on speculation the government will boost stimulus, with Poly Real Estate Group Co jumping by the daily limit of 10%. Sosei Group Corp soared +17% after Pfizer Inc agreed to buy a 3% stake in the Tokyo based company.