Morning Spread

Morning Spread

Monday 21st March 2016
IndexLevelChg (%)
UK Market6199.18+0.24
Dow Indust Avg17602.30+0.69
S&P 5002049.58+0.44
Nasdaq Composite4795.65+0.43
Nikkei 22516724.81-1.25
Hang Seng20684.15+0.06
IndexLevelChg (%)
Nymex 1m39.14-0.76
Gold Spot1244.38-0.87
GBP/USD1.4407+0.47
GBP/EUR1.2790-0.45
EUR/USD1.1264-0.05
USD/JPY111.52+0.03

European shares reversed early losses this morning as potential merger and acquisition activity boosted chemical companies, outweighing declines in miners and energy companies. The ESTX 50 (+0.66%), CAC 40 (+0.19%), Dax (+1.07%) and the UK markets (+0.24%) all posted gains in early trading. Bayer rose +2% after people familiar with the matter told Reuters that Monsanto had approached Bayer to express interest in its crop unit, including a potential acquisition worth more than $30 billion. Telecom Italia SpA climbed +3.6% after saying that CEO Marco Patuano is discussing the terms of his resignation. Gas Natural SDG SA added +2.7% after changing its dividend proposal and increasing its payout ratio.

 

US stocks rose after the US Federal Reserve’s dovish tone a strengthening economic outlook compelled investors to take on more risk. The Dow Jones Industrial Average (+0.69%), S&P 500 (+0.44%) and the Nasdaq Composite (+0.43%) all increased. Crude oil dipped on Friday as traders booked profits after strong seasonal demand and the US oil rig count rose for the first time since December. Bank of America and JPMorgan each climbed about +2.9% after the companies announced share buyback programs, giving the biggest boost to the S&P 500. Adobe rose +3.8% after raising its full year profit and revenue forecasts above expectations. Starwood Hotels & Resorts jumped +5.8% after receiving what it deemed a superior takeover offer from China’s Anbang Insurance Group and said it planned to end a deal with Marriott.

 

Asian stocks fell as commodity producers slipped after crude oil prices dropped. The S&P/ASX 200 (-0.32%) and Nikkei 225 (-1.25%) both declined, while the Hang Seng (+0.06%) was slightly positive. Everbright Securities Co was among brokerages that jumped by the 10% daily limit after China Securities Finance Corp said it will restart offering loans to securities firms for periods ranging from 7 days to 182 days. The state backed agency, which provides funding to brokerages for margin trading, will cut interest rates on the debt to as low as 3%, it said in a statement on Friday. Citic Securities jumped +8.9%.