Morning Spread

Morning Spread

Friday 23rd January 2015
IndexLevelChg (%)
UK Market6814.57+0.26
Dow Indust Avg17813.98+1.48
S&P 5002063.15+1.53
Nasdaq Composite4750.40+1.78
Nikkei 22517511.75+1.05
Hang Seng24850.45+1.34
IndexLevelChg (%)
Nymex 1m46.92+1.32
Gold Spot1293.43-0.67
GBP/USD1.4979+0.29
GBP/EUR1.3322+0.95
EUR/USD1.1244-1.22
USD/JPY118.28-0.12

European stocks jumped as the European Central Bank’s plan to expand asset purchases sent the euro toward an 11 year low. The ESTX 50 (+1.41%), UK markets (+0.37%), CAC 40 (+1.55%) and the Dax (+1.33%) all posted gains in early trading. Euro zone banks, seen benefiting from a rebound in corporate lending as the ECB’s QE kicks in, featured among the top gainers this morning. Raiffeisen Bank International rose +3.9% and Commerzbank was up +3.1%. Cyclical stocks also benefitted from the drop in the euro currency. BMW was up +4.4% and PSA Peugeot Citroen was up +3.7%. Vodafone Group Plc and BT Group Plc climbed more than +2% after Hutchinson Whampoa Ltd started talks to buy O2 for as much as £10.25 billion. Glencore Plc slipped -2.6% as JPMorgan Chase & Co recommended selling the shares.

 

US stocks rallied on the back of larger than anticipated stimulus from the ECB. The Dow Jones Industrial Average (+1.48%), S&P 500 (+1.53%) and the Nasdaq Composite (+1.78%) all advanced. Banks led the gains yesterday. Wells Fargo and Bank of America rose +3.2% and +4.4%, respectively. After the closing bell, Starbucks shares rose +3.2% after sales at established restaurants in its Americas region were slightly stronger than analysts’ estimates. American Express dropped -3.8% after saying it would cut more than 4,000 jobs this year as expenses and provisions for bad loans rose. F5 Networks Inc slumped -10% after reporting revenue that missed expectations for the first time in eight quarters.

 

Asian stocks extended a global rally after the ECB launched a landmark bond buying stimulus program that buoyed investors’ risk appetite. The Nikkei 225 (+1.05%), Hang Seng (+1.34%) and the S&P/ASX 200 (+1.51%) all increased. WorleyParsons Ltd jumped +9.3% after winning a contract in Canada. Yaskawa Electric Corp added +5.7% in Tokyo after raising its profit forecast and dividend. Teijin Ltd climbed +5% after Nomura Holdings Inc boosted its price target on the company. PetroChina Co added +2.5% as crude futures rebounded.