Morning Spread

Morning Spread

Tuesday 23rd February 2016
IndexLevelChg (%)
UK Market6002.25-0.59
Dow Indust Avg16620.66+1.40
S&P 5001945.50+1.45
Nasdaq Composite4570.61+1.47
Nikkei 22516052.05-0.37
Hang Seng19414.78-0.25
IndexLevelChg (%)
Nymex 1m32.74-1.95
Gold Spot1217.88+0.76
GBP/USD1.4126+0.28
GBP/EUR1.2847+0.03
EUR/USD1.0996-0.29
USD/JPY112.01+0.93

European stocks were mixed this morning with commodity producers making losses as oil resumed a decline.  The ESTX 50 (-0.03%), Dax (-0.69%) and UK markets (-0.31%) all posting losses in early trading, while the CAC 40 (+0.05%) was positive. BHP Billiton Ltd and Glencore Plc dropped as least -3%. After surging 8% or more yesterday. InterContinental Hotels Group Plc gained +3.9% after saying it will pay $1.5 billion in special dividend. Swiss Re AG fell -2% after naming a new chief executive officer.   

US stocks gained, helped by a robust rally in oil prices that lifted recently beaten up stocks, including Chevron and Schlumberger. The Dow Jones Industrial Average (+1.40%), S&P 500 (+1.45%) and the Nasdaq Composite (+1.47%) all increased. US crude prices settled up more than +6% but still remained around decade lows, while prices of industrial metals such as copper and zinc rose as investors worried about potential shortages. Chevron rose +2.68% and Schlumberger closed up +2.06%. Alcoa and Freeport-McMoRan both surged more than +13%.  Honeywell International Inc fell -1.95% and United Technologies rallied +4.69% after it was reported the two have held merger talks.

Asian shares retreated as the oil price rally that had boosted global equity markets reversed. The US optimism resonated in resources related stocks, which led gains in Japan.  The Nikkei 225 (-0.37%), Hang Seng (-0.25%) and the S&P/ASX 200 (-0.43%) all declined. Nippon Steel & Sumitomo Metal Corp jumped +4%, while JFE Holdings Inc surged +5.7%.  Komatsu Ltd climbed +1.4%. Aozora Bank Ltd gained +2.2% after Goldman Sachs lifted its rating on the bank and said its overseas earnings, lower funding costs and dividend yield were making shares attractive. Nomura Holdings Inc lost -1.8% after Goldman Sachs also lowered its rating on the company, citing weakness in Nomura’s overseas operations.