Morning Spread

Morning Spread

Monday 22nd February 2016
IndexLevelChg (%)
UK Market6032.96+1.39
Dow Indust Avg16391.99-0.13
S&P 5001917.780.00
Nasdaq Composite4504.43+0.38
Nikkei 22516111.05+0.90
Hang Seng19464.09+0.93
IndexLevelChg (%)
Nymex 1m30.50+2.90
Gold Spot1207.23-1.56
GBP/USD1.4165+1.67
GBP/EUR1.2779-1.28
EUR/USD1.1085-0.40
USD/JPY113.09-0.41

European stocks rallied this morning as equities in the UK climbed amid a weakening pound. The ESTX 50 (+1.57%), UK markets (+1.16%), CAC 40 (+1.46%) and the Dax (+1.52%) all posted gains in early trading. Associated British Foods Plc added +1.5% after raising its annual profit outlook. HSBC Holdings Plc fell -3.9% after posting a quarterly loss, hurt by a decline in income from lending, higher loan impairment charges and fair value losses on its debt. UCB SA rose +1.4% after saying an experimental treatment it’s developing with Amgen Inc reduced frequency of new spinal fractures in post-menopausal women with osteoporosis.  

US stocks were little changed as Applied Materials helped lift the tech sector and offset a renewed drop in oil prices. The Dow Jones Industrial Average (-0.13%) closed slightly down, while the S&P 500 (0.00%) was flat and the Nasdaq Composite (+0.38%) finished the session positive. Investors also digested data that showed rising rents and healthcare costs lifted underlying US inflation in January, a sign of a pick-up in prices pressures that could allow the Federal Reserve to gradually raise rates this year. Recent economic data related to industrial production and the labour market has encouraged investors about the strength of the US economy.  Applied Materials jumped +7% after giving a strong profit and revenue forecast for the current quarter. Nordstrom dropped -6.7% after quarterly profit missed expectations.  Deere & Co fell -4.1% after cutting its fiscal year sales and profit outlook. Caterpillar fell -1.1%

Asian shares rose as investors awaited several February industry surveys to take the pulse of the global economy. The Nikkei 225 (+0.90%), Hang Seng (+0.93%) and the S&P/ASX 200 (+0.98%) all advanced. Bank of East Asia Ltd jumped +9.2%, the most in more than six years, after a major shareholder increased his stake in the company. Energy companies suffered after crude dropped more than 3%, sending Inpex Corp down -4.8%. Airlines gained on prospects for lower fuel costs, with Japan Airlines Co rising +5.6%. Mitsubishi UFJ Financial Group Inc dropping -1.8% after announcing it would cut deposit and fixed term mortgage rates in the wake of the Bank of Japan’s adoption of negative interest rates.