Morning Spread

Morning Spread

Monday 23rd May 2016
IndexLevelChg (%)
UK Market6166.20+0.16
Dow Indust Avg17500.94+0.38
S&P 5002052.32+0.60
Nasdaq Composite4769.56+1.21
Nikkei 22516654.60-0.49
Hang Seng19809.03-0.22
IndexLevelChg (%)
Nymex 1m47.85-1.22
Gold Spot1250.89-0.10
GBP/USD1.4514-0.21
GBP/EUR1.2965+0.33
EUR/USD1.1210-0.12
USD/JPY109.61+0.49

European stocks fluctuated this morning as investors considered the timing of the next interest rate increase by the Federal Reserve. The ESTX 50 (+0.04%), CAC 40 (+0.04%), Dax (+0.44%) and the UK markets (+0.22%) all posted gains in early trading. Bayer fell -3% after saying it had made an offer to buy Monsanto for $62 billion. Aixtron soared +15% after China’s Fujian Grand Chip Investment Fund agreed to make a €6 per share offer to buy the company. AMS AG and Dialog Semiconductor Plc jumped at least +5% after Taiwan’s Economic Daily News reported that Apple has asked suppliers to prepare production for a new version of the iPhone.  

US stocks rallied, led by tech stocks on the back of Applied Material’s strong profit forecast. The Dow Jones Industrial Average (+0.38%), S&P 500 (+0.60%) and the Nasdaq Composite (+1.21%) all increased. Data on Friday showed US home resales rose more than expected in April, suggesting the economy continues to gather pace during the second quarter. Applied Materials jumped +13.8% after announcing a higher than expected profit forecast. Apple rose +1.1%. Deere fell -5.5% after cutting its profit outlook further and reported lower quarterly earnings. Campbell Soup tumbled -6.4% after disappointing sales.

Asian stocks rebounded as Chinese and Taiwanese shares gained while Japanese equities pared a steep loss. The S&P/ASX 200 (-0.60%), Hang Seng (-0.22%) and the Nikkei 225 (-0.49%) all declined but recovered to limit earlier losses. Exports from Japan fell for a seventh consecutive month in April as the yen strengthened, underscoring the mounting challenges to Prime Minister Abe’s efforts to revive economic growth. Overseas shipments dropped 10% while imports declined 23%. Toyota Motor Corp fell -1% and Hino Motors Ltd dropped -1.1%. Henan Shuanghui Investment & Development Co jumped +2.3% and Kweichow Moutai Co added +1.2%.