Morning Spread

Morning Spread

Wednesday 22nd June 2016
IndexLevelChg (%)
UK Market6231.70+0.08
Dow Indust Avg17829.73+0.14
S&P 5002088.90+0.27
Nasdaq Composite4843.76+0.14
Nikkei 22516065.72-0.64
Hang Seng20794.91+0.61
IndexLevelChg (%)
Nymex 1m50.35+1.00
Gold Spot1267.72-0.03
GBP/USD1.4657+0.04
GBP/EUR1.2999-0.18
EUR/USD1.1275+0.14
USD/JPY104.37+0.24

European stocks rose amid a rally in miners and energy producers, while investors maintained faith that the UK will vote to remain in the European Union. The ESTX 50 (+0.24%), CAC 40 (+0.33%), Dax (+0.52%) and the UK markets (+0.115) all posted gains in early trading. Anglo American Plc and ArcelorMittal both rose at least +1.9% as industrial metals climbed. Merlin Properties Socimi SA gained +3.4% after agreeing to a merger with Metrovacesa SA to create the largest Spanish property rental group. Julius Baer advanced +2% after Citigroup raised its rating on the stock to “buy” from “neutral”.

US stocks rose as Federal Reserve Chair Janet Yellen was optimistic about the economy and played down the risk of recession. Yellen, however, warned that the British vote tomorrow on whether to stay in the European Union, alongside a US hiring slowdown, posed risks to the economic outlook. The Dow Jones Industrial Average (+0.14%), S&P 500 (+0.27%) and the Nasdaq Composite (+0.14%) all increased. Microsoft led the S&P advance with a +2.2% gain followed by Apple’s +0.8% rise. United Continental rose +3.4% after laying out plans to generate an extra $3.1 billion in operating income per year by 2018. Celegene was the biggest drag on the S&P with a -2.4% decline.

Asian stocks erased losses, as Japanese equities pared their decline, as campaigning for the UK referendum enters the final day. The S&P/ASX 200 (-0.06%) and the Nikkei 225 (-0.64%) were both negative, while the Hang Seng (+0.68%) advanced. Coal producers rallied in Hong Kong and Shanghai as oil traded near $50 a barrel. Yanzhou Coal Mining Co surged by the +10% daily limit, while China Coal Energy Co added +2.8%. Shenhua Energy surged +5.3% to lead gains for stocks in the Hang Seng. Toyota lost -0.14%, Nissan declined -0.34%, Honda dropped -1.75% and Sony was down -1.86% as the yen gain impacting Japanese exporters overseas profits.