Morning Spread

Morning Spread

Tuesday 1st March 2016
IndexLevelChg (%)
UK Market6123.90+0.44
Dow Indust Avg16516.50-0.74
S&P 5001932.23-0.81
Nasdaq Composite4557.95-0.71
Nikkei 22516085.51+0.37
Hang Seng19407.46+1.55
IndexLevelChg (%)
Nymex 1m34.04+0.86
Gold Spot1241.15+0.19
GBP/USD1.3956-0.31
GBP/EUR1.2850+0.44
EUR/USD1.0861-0.13
USD/JPY113.07-0.13

European stocks gained after China’s central bank resumed its easing cycle, injecting an estimated $100 billion of long term cash into the economy and cutting the reserve requirement ratio for commercial banks by 50 basis points. The ESTX 50 (+0.62%), UK markets (+0.30%), CAC 40 (+0.39%) and the Dax (+1.26%) all posted gains in early trading. Barclays fell -7% after reporting a 2% fall in full year pre-tax profit. London Stock Exchange Group, which last week received a merger offer from Deutsche Boerse Ag, surged +8% after Intercontinental Exchange confirmed a possible counterbid.  Anglo American, Rio Tinto and BHP Billiton all rose between +2.7% and 4.7%.

US stocks declined as worries about China persisted after the Chinese currency edged lower and the central bank cut its reserve requirements to free up funds for banks to make loans. The Dow Jones Industrial Average (-0.74%), S&P 500 (-0.81%) and the Nasdaq Composite (-0.71%) all decreased. Endo International slumped -21% after the company’s revenue forecast missed estimates. Valeant tumbled -18.41% after saying its chief executive would return from medical leave and it delayed the release of its quarterly results. Icahn Enterprises rose +3.68% after the activist investor offered to buy the rest of Federal Mogul. Federal Mogul soared +45.78.

Asian stocks rose, boosted by China’s monetary easing and downbeat manufacturing and service surveys that raised hopes of additional stimulus measures. The Hang Seng (+1.55%), Nikkei 225 (+0.37%) and the S&P/ASX 200 (+0.85%) all increased. China’s rate cut was a mixed bag for Japanese companies that rely on China for large parts of business. Komatsu Ltd dropped -1.3%, while Pigeon Corp gained +1%. JFE Container, a company that gets almost a third of sales from the Greater China region, lost -2.3%. NEC Corp sank -11% after cutting its full year sales and operating profit forecasts, citing delays in public projects and lower spending on telecom equipment.