Morning Spread

Morning Spread

Thursday 20th August 2015
IndexLevelChg (%)
UK Market6.76.25-0.42
Dow Indust Avg17348.73-0.93
S&P 5002079.61-0.83
Nasdaq Composite5019.05-0.80
Nikkei 22520033.52-0.94
Hang Seng22757.47-1.77
IndexLevelChg (%)
Nymex 1m40.62-0.44
Gold Spot1136.71+0.26
GBP/USD1.5642+0.03
GBP/EUR1.4060-0.63
EUR/USD1.1124+0.60
USD/JPY124.01+0.05

European stocks declined amid concern that global growth is slowing. The ESTX 50 (-0.33%), UK markets (-0.35%), Dax (-0.55%) and the CAC 40 (-0.26%) all posted losses in early trading. Gamesa Corp and Vestas Wind Systems A/S slid -2.7% after Credit Suisse Group AG downgraded the companies. Kaz Minerals Plc surged +14% after Kazakh authorities scrapped a trading band for the country’s currency, causing a plunge in the tenge. Royal Ahold NV climbed +3.8% after reporting quarterly profit that topped analysts’ estimates. Straumann Holding AG gained +2% after raising its annual sales growth forecast.

 

US stocks fell as minutes from the latest Federal Reserve meeting highlighted concern over the state of the global economy, driving markets to question the likelihood that the Fed will raise rates next month. The Dow Jones Industrial Average (-0.93%), S&P 500 (-0.83%) and the Nasdaq Composite (-0.80%) all retreated. The minutes showed policymakers continued to express broad concerns about lagging inflation and the weak economy even as the US job market improved further. Target Corp rose +0.7%, paring an earlier rally of +5.4%. While second quarter earnings beat estimates, the company said that it’s having difficulties with items being out of stock. Yum! Brands Inc rose +2.2% after saying Mickey Pant will succeed Sam Su as CEO of its China unit.

 

Asian stocks fell following the release of the Federal Reserve minutes and as concerns heightened over China’s slowdown. The Nikkei 225 (-0.94%), Hang Seng (-2.01%) and the S&P/ASX 200 (-1.70%) all dropped. Shiseido Co, which gets about 22% of its sales from Asia excluding Japan, slumped -5.1%. Fanuc Corp, which gets more than half of its revenue from Asia excluding Japan, slumped -1.6%. SoftBank Group Corp gained +2.2% after President Nikesh Arora said he’ll buy about 60 billion yen of the company’s shares. Inpex Corp sank -2.9%, Japan Petroleum Exploration Co lost -5.1% and Cosmo Oil Co slumped -4% as the price of oil dropped following a US government report that showed an unexpected increase in US crude stockpiles.