Morning Spread

Morning Spread

Friday 20th May 2016
IndexLevelChg (%)
UK Market6144.31+1.50
Dow Indust Avg17435.40-0.52
S&P 5002040.04-0.37
Nasdaq Composite4712.53-0.56
Nikkei 22516736.34+0.54
Hang Seng19852.20+0.80
IndexLevelChg (%)
Nymex 1m48.51+0.73
Gold Spot1255.24+0.04
GBP/USD1.4562+0.38
GBP/EUR1.2973-0.53
EUR/USD1.1224+0.14
USD/JPY110.28-0.44

European shares gained as crude and commodity prices recovered and investors shrugged off concerns that a Federal Reserve rate increase as early as June will derail the US economic recovery. The ESTX 50 (+1.43%), CAC 40 (+1.41%), Dax (+1.05%) and the UK markets (+1.68%) all posted gains in early trading. Ladbrokes Plc jumped +11% after the UK’s competition watchdog said the company and rival Coral Group may have to sell as many as 400 shops to get approval of a merger that would create Britain’s biggest betting shop chain. UniCredit rose +3.4% after Media reports it could look at asset sales to boost its capital base, which could help ease concerns over a potential cash call.

 

US stocks fell as Wall Street became more worries that the Federal Reserve might raise US interest rates as early as June. The Dow Jones Industrial Average (-0.52%), S&P 500 (-0.37%) and the Nasdaq Composite (-0.56%) all decreased. In a new blow to Wall Street’s confidence, New York Fed President William Dudley said the US economy could be strong enough to warrant a rate increase next month. Microsoft fell -0.96% and Verizon Communications lost -1.51%, both weighing the most on the S&P 500. Wal-Mart surged +9.58% after reporting first quarter results that beat analysts’ estimates. Monsanto gained +3.52% after disclosing German group Bayer made an unsolicited takeover proposal.

 

Asian stocks swung between losses and gains as investors assess what an US interest rate increase as soon as June will mean for global economic growth. The S&P/ASX 200 (+0.53%), Hang Seng (+0.80%) and the Nikkei 225 (+0.54%) all increased. Oil Search Ltd climbed +0.2% in Sydney after agreeing to buy InterOil Corp in a deal valuing the company around $2.2 billion. BHP Billiton Ltd rallied +1.1% and Rio Tinto Group gained +1.7% in Sydney as copper prices rose. Japanese exporters rose on a weaker yen. Toyota Motor Corp added +1.2%. TDK Corp, which gets more than 90% of revenue abroad, climbed +2.1%.