Morning Spread

Morning Spread

Tuesday 1st September 2015
IndexLevelChg (%)
UK Market6109.47-2.22
Dow Indust Avg16528.03-0.69
S&P 5001972.18-0.84
Nasdaq Composite4776.51-1.07
Nikkei 22518165.69-3.84
Hang Seng21250.99-1.94
IndexLevelChg (%)
Nymex 1m47.28-3.90
Gold Spot1972.18+0.66
GBP/USD1.5373-0.18
GBP/EUR1.3595-0.75
EUR/USD1.1308+0.93
USD/JPY120.05+1.01

European stocks fell this morning, extending the losses recent weeks after weak manufacturing data from China again raised concerns over the health of its economy. The ESTX 50 (-2.71%), UK markets (-2.64%), CAC 40 (-2.62%) and the Dax (-2.79%) all posted losses in early trading. Bwin.party Digital Entertainment Plc dropped -1.5% after its takeover battle took another twist with a revised proposal from 888 Holdings Plc. BP Plc declined -1% as oil’s biggest three day rally in 25 years stalled before US government data forecast to show crude stockpiles expanded. British American Tobacco Plc fell -2% and weighed heaviest on the UK equity index. AstraZeneca Plc and GlaxoSmithKline Plc were also a drag, with both losing at least -2%. Shire Plc posted the biggest drop, falling -3.1%.  

 

US stocks declined after comments from a senior Federal Reserve official heightened fears among investors of a potential US interest hike in September. The Dow Jones Industrial Average (-0.69%), S&P 500 (-0.84%) and the Nasdaq Composite (-1.07%) all dropped. Fed Vice Chairman Stanley Fischer said US inflation would likely rebound as pressure from the dollar fades, allowing the Fed to raise interest rates gradually. Many analysts took Fischer’s comments as a sign the Fed would raise rates in September, instead of December. That shook investors who were already jumpy after weeks of turbulence caused by concerns over China. Celgene fell -4.8% and weighed most on the S&P 500. Phillips 66 rose +2.38% after Warren Buffett’s Berkshire Hathaway disclosed a $4.48 billion stake in the oil refiner.  

 

Asian stocks fell as a contraction in Chinese manufacturing reinforced investor concerns about the speed of a slowdown in world’s second biggest economy. The Nikkei 225 (-3.84%), Hang Seng (-2.24%) and the S&P/ASX 200 (-2.12%) all retreated. Toshiba Corp slumped -5.3% in Tokyo, bringing this year’s losses to 29%, after saying it found new accounting problems related to a US unit’s construction project. Technology and consumer discretionary companies in China suffered the biggest declines. Yonyou Network Technology Co retreated +6.8%. Shanghai Wangsu Science & Technology Co lost -5.6%. Suning Commerce Group Co dropped -10%. Chinese banks gained, ICBC advanced +7.4% and China Construction Bank Corp jumped +8.7%. PetroChina advanced +3%, as the price of oil rallied.