Morning Spread

Morning Spread

Friday 1st July 2016
IndexLevelChg (%)
UK Market6527.30+0.35
Dow Indust Avg17929.99+1.33
S&P 5002098.86+1.36
Nasdaq Composite4842.67+1.33
Nikkei 22515682.48+0.68
Hang Seng20794.37+1.75
IndexLevelChg (%)
Nymex 1m48.19-0.29
Gold Spot1335.02+0.97
GBP/USD1.3305-0.28
GBP/EUR1.1990+0.06
EUR/USD1.1097+0.22
USD/JPY102.51+0.67

European shares gained this morning continuing a rally that had up to now recouped more than half of the losses from the aftermath of the Brexit vote. The ESTX 50 (+0.23%), CAC 40 (+0.30%), Dax (+0.45%) and UK markets (+0.38%) all posted gains in early trading. The European Central Bank is considering loosening the rules for its bond purchases to ensure enough debt is available to buy. Temenos Group AG climbed +3.9% after saying Standard Chartered Plc will use its wealth management program in more than 30 markets. Deutsche Bank fell -2.7% after the US Federal Reserve said late on Wednesday that its US unit had failed stress tests yet again this year because of poor risk management and financial planning. UniCredit rose +2.3% after picking a new CEO.

US stocks gained as the UK’s central bank raised the prospect of stimulus and consumer staples shares gained on news of Mondelez International’s $23 billion bid for Hershey. The Dow Jones Industrial Average (+1.33%), S&P 500 (+1.36%) and the Nasdaq Composite (+1.33%) all advanced.  Adding to positive US economic data from earlier in the week, factory activity in the US Midwest surged to its highest in almost 18 months in June amid strong gains in new orders and production. Hershey shares surged +16.8% after news that Mondelez had made a takeover offer, which Hershey rejected. Mondelez gained +5.9%. Visa fell -3.3% and MasterCard dropped -4.4% after a federal appeals court threw out an antitrust settlement the credit card companies had reached with millions of retailers.

Asian stocks climbed as central banks signalled looser monetary policies to blunt the impact of Britain’s decision to leave the European Union. The S&P/ASX 200 (+0.25%), Hang Seng (+1.75%) and the Nikkei 225 (+0.68%) all increased. Nitori Holdings Co jumped +7.9% in Tokyo after reporting a 31% increase in quarterly operating profit and Nomura Holdings Inc raised its price target. Sysmex Corp climbed +5.3% after raising its stake in Riken Genesis Co as it seeks to expand into genetic research. Newcrest Mining Ltd rose +4.4% in Sydney as gold headed for a fifth weekly advance.