Morning Spread

Morning Spread

Thursday 21st April 2016
IndexLevelChg (%)
UK Market6394.45-0.25
Dow Indust Avg18096.27+0.24
S&P 5002102.40+0.08
Nasdaq Composite4948.13+0.16
Nikkei 22517363.62+2.70
Hang Seng21622.25+1.82
IndexLevelChg (%)
Nymex 1m44.09-0.20
Gold Spot1257.83+1.09
GBP/USD1.4310+0.50
GBP/EUR1.2674-0.18
EUR/USD1.1291-0.32
USD/JPY109.69-0.01

European shares rose this morning on expectations that the European Central Bank would reinforce its ultra-loose monetary policy. The ESTX 50 (+0.30%), CAC 40 (+0.07%), Dax (+0.28%) and the UK markets (+0.05%) all posted gains in early trading. Volkswagen rose +5.3% after sources told Reuters that VW and US officials had reached a framework deal under which the company would offer to buy back almost 500,000 diesel cars that used sophisticated software to evade emission rules. Ericsson slumped -9% after posting first quarter sales and operating profit below market expectations. Schneider Electric SE climbed +4% after posting first quarter revenue that beat estimates. Darty Plc jumped +14% after Groupe Fnac SA raised its bid for the company, topping an increased offer from Steinhoff International Holdings NV. Fnac slipped -2.2%.

US stocks rose as a rebound in oil prices added to optimism sparked by a raft of earnings reports. The Dow Jones Industrial Average (+0.24%), S&P 500 (+0.08%) and the Nasdaq Composite (+0.16%) all increased. Crude gained about +2% after a report showed US inventories grew less than expected last week. VMWare jumped +13.74%, Discover Financial Services rallied +8.16%, St Jude Medical gained +3.99% and Yahoo rose +4.16% after they all reported better than expected quarterly profits. Coca Cola fell -4.78% after sales dropped for the fourth straight quarter. Lexmark jumped +9.38% after it agreed to be taken private by a group of investors led by Apex Technology Co and PAG Asia Capital in a deal valued at $3.6 billion net of cash. After the bell, Qualcomm lost -0.5% after reporting a 19.5% drop in quarterly revenue.

Asian stocks rose after crude futures climbed to an almost five month high and Japanese shares gained as the yen held three days of losses against the dollar. The S&P/ASX 200 (+1.09%), Hang Seng (+1.82%) and the Nikkei 225 (+2.70%) all increased. Mitsubishi Motors plummeted -20% after saying that about 625,000 minicars produced over the past three years were marketed as being as much as 10% more fuel efficient than they were. Nissan Motor Co, which sold three quarters of Mitsubishi’s minicars under its own brand, rose +3.2% as investors brushed off concerns the fallout may spread. Mitsubishi’s suppliers dropped. Meidensha Corp sank -9.4% and GS Yuasa Corp fell -1.5%. Fujifilm Holdings Corp jumped +6.3% after the Nikkei newspaper reported operating profit would reach 220 billion yen in the fiscal year ending March 2017.