Morning Spread

Morning Spread

Thursday 22nd October 2015
IndexLevelChg (%)
UK Market6343.20-0.08
Dow Indust Avg17168.61-0.28
S&P 5002018.94-0.58
Nasdaq Composite4840.12-0.84
Nikkei 22518435.87-0.64
Hang Seng22834.41-0.67
IndexLevelChg (%)
Nymex 1m45.45+0.55
Gold Spot1167.60+0.04
GBP/USD1.5435+0.04
GBP/EUR1.3643+0.25
EUR/USD1.1313-0.29
USD/JPY119.73+0.19

European shares rose as investors awaited a European Central Bank policy meeting and after positive earnings updates from several companies. The ESTX 50 (+0.23%), CAC 40 (+0.03%) and the Dax (+0.25%) all posted gains in early trading, while the UK markets (-0.08%) decreased. The ECB is likely to keep the door open for more monetary stimulus but stop short of taking policy steps at a meeting on Thursday as it awaits fresh indications about the outlook for euro zone inflation. Roche rose +1.5% after raising its full year sales outlook. Publicis fell -7% after cutting its annual organic growth target to 1% from 2.5% as quarterly sales slowed markedly hurt by weakness in the United States. Daimler lost -1.3% despite third operating profit jumping by almost a third as strong demand in Europe and China coupled with new product launches spurred luxury car sales to a record.

 

 

US stocks fell as a sharp drop in Valeant Pharmaceuticals hit the healthcare sector, while the energy sector dropped along with oil prices. The Dow Jones Industrial Average (-0.28%), S&P 500 (-0.58%) and the Nasdaq Composite (-0.84%) all retreated. Valeant Pharmaceuticals plunged to an intraday low of $88.50 on record volume after a short seller accused the company of using speciality pharmacies to inflate its revenue. The company denied the allegation, and later investor Bill Ackman said he increased his Valeant stake by about 2 million shares. The stock pared losses to end the session down -19.2% at $118.61. It lost about $9.6 billion in market capitalisation. The news also dragged down Allergan (-1.7%) and Endo International (-13.3%), Though both companies tried to ease concerns about their use of speciality pharmacies. General Motors rose +5.8%, while Boeing rose +1.7%, after both reported better than expected results. Ferrari was up +5.8% in its debut on the New York Stock Exchange. After the bell, eBay rose +8.4% following results.

 

Asian shares declined amid concerns about the health of China’s economy, and as investors awaited the result of a meeting of the European Central Bank. The Nikkei 225 (-0.64%) and the Hang Seng (-0.69%) both decreased, while the S&P/ASX 200 (+0.30%) gained. IHI Corp slumped -11% after cutting its profit target. Obic Co jumped +7.4% after saying first half net income rose 41%. Kaken Pharmaceuticals International Inc tumbled -9.7%, following Valeant Pharmaceuticals and other US healthcare stocks drop. International & Commercial Bank of China Ltd, which is reporting earnings later this month, slumped -2.5% on concerns the slowing economy may have hurt profit. Bank of Communications Co dropped -2%.