Morning Spread

Morning Spread

Friday 23rd October 2015
IndexLevelChg (%)
UK Market6419.24+0.67
Dow Indust Avg1174.91+0.76
S&P 5002052.51+1.66
Nasdaq Composite4920.05+1.65
Nikkei 22518825.30+2.11
Hang Seng23151.94+1.34
IndexLevelChg (%)
Nymex 1m45.53+0.33
Gold Spot1174.91+0.76
GBP/USD1.5406-0.13
GBP/EUR1.3840+0.19
EUR/USD1.1131-0.05
USD/JPY120.33+0.27

European shares climbed this morning as investors speculated on further monetary support from the European Central Bank. The ESTX 50 (+1.30%), UK markets (+0.63%), CAC 40 (+1.40%) and The Dax (+1.35%) all posted gains in early trading. Gjensidige surged +11.2% after the company reported third quarter profits ahead of market expectations. Electrolux gained +3.8% after the company reported third quarter earnings that beat market expectations. Ericsson fell -4.3% after it posted third quarter revenue and profits below market expectations. Volvo rose +2.6% after saying third quarter operating profit surged 75%. Vinci SA gained +1.1% after forecasting better than projected annual sales. TalkTalk Telecom Group Plc declined -3.2% after saying a data hack may have compromised customers credit card details.

 

US stocks rallied as stronger than expected earnings from several companies relieved investors’ concerns about the profit outlook. The Dow Jones Industrial Average (+1.87%), S&P 500 (+1.66%) and the Nasdaq Composite (+1.65%) all advanced. Buying accelerated after the close, with broad gains in tech and other companies that reported results, including Alphabet, up +9.6% and Microsoft up +7.2%. Amazon rose +10.6% after it posted results. McDonald’s jumped +8.1%, giving the Dow its biggest boost, after its quarterly results beat estimates as demand recovered in China. eBay rose +13.9% after it reported better than expected results. Dow Chemical rose +5.1% after its results, while the S&P materials index jumped +2.8% and led the S&P sector gains along with industrials, also up +2.8%. Community Health Systems sank -35.1% after it gave a disappointing revenue outlook.

 

Asian stocks rose after the European Central Bank signalled it may boost stimulus this year and amid speculation the Chinese government will take more measures to bolster the economy before a top-level Communist Party meeting starts next week. The S&P/ASX 200 (+1.67%), Hang Seng (+1.29%) and the Nikkei 225 (+2.11%) all increased. Calbee gained +9.6% after the Nikkei Business Daily reported its April-September profits were likely to come in strong,  while Megmilk Snow Brand soared +10.5% on raised April-September guidance. Kweichow Moutai Co jumped +4.2% after reporting an increase in third quarter profit. China Vanke Co climbed +2.9% after home prices increased in more Chinese cities. Nomura Holdings Co surged +3.7% and Daiwa Securities Group Inc climbed +2.3%.