Morning Spread

Morning Spread

Thursday 22nd September 2016
IndexLevelChg (%)
UK Market6878.38+0.58
Dow Indust Avg18293.70+0.90
S&P 5002163.12+1.09
Nasdaq Composite5295.18+1.03
Nikkei 22516807.62+1.91
Hang Seng23759.80+0.38
IndexLevelChg (%)
Nymex 1m45.81+1.04
Gold Spot1332.75-0.07
GBP/USD1.3080-0.79
GBP/EUR1.1639+0.08
EUR/USD1.1239+0.71
USD/JPY100.80-0.08

European shares climbed after the Federal Reserve held off raising borrowing costs. The ESTX 50 (+1.14%), CAC 40 (+1.13%), Dax (+1.21%) and the UK markets (+0.58%) all posted gains in early trading. Commodity and energy producers climbed the most with oil rising following a drop in US stockpiles. Rio Tinto Group and BHP Billiton Ltd were up more than +3.4%. Fingerprint Cards AB advanced +3.8% after a report that a Chinese company approached it this summer about a potential merger. EDF fell -2.4% after saying it was cutting it 2016 earnings expectations due to lower output. Banco BPI rose +3.8% after Caixabank launched a bid for the bank and slightly raised its offer price. Caixabank shares were down -2.4%.

US stocks advanced after the US Federal Reserve kept interest rates unchanged, for now leaving intact the low rate environment that has helped underpin the bull market. The Dow Jones Industrial Average (+0.90%), S&P 500 (+1.09%) and the Nasdaq Composite (+1.03%) all increased. Concerns over whether the Fed would raise rates prompted a return of volatility to the stock market in recent weeks after two months of calm. The Fed has held its target rate for overnight lending between banks in a range of 0.25% to 0.50% since December. FedEx gained +6.9% after reporting a profit. Microsoft Corp added +1.67% after saying it would increase its quarterly dividend by 8% over the previous quarter, and it approved a share buyback program of up to $40 billion.

Asian stocks rose after the Federal Reserve kept US interest rates steady and scaled back expectations for increases in 2017 and the Bank of Japan overhauled its monetary policy, potentially easing pressure on banks and insurers. The S&P/ASX 200 (+0.65%), Hang Seng (+0.38%) and the Nikkei 225 (+1.91%) all advanced. Sinopec, China Shenhua Energy Co and China Petroleum & Chemical Corp all rallied at least +2% as higher crude prices boosted energy producers. Cheung Kong Property Holdings Ltd and Hang Lung Properties Ltd added +1.9% each as bets the Fed will be slow to raise interest rates has helped Hong Kong home prices rebound this quarter. Mitsubishi UFJ Financial Group Inc jumped +7% and Mizuho Financial Group rose +7%. Dai-ichi Life Insurance Co ltd jumped +10.1%.