Morning Spread

Morning Spread

Friday 23rd September 2016
IndexLevelChg (%)
UK Market6894.08-0.25
Dow Indust Avg18392.46+0.90
S&P 5002177.18+1.09
Nasdaq Composite5339.52+0.84
Nikkei 22516754.02-0.32
Hang Seng23686.48-0.31
IndexLevelChg (%)
Nymex 1m45.64-1.47
Gold Spot1335.25-0.14
GBP/USD1.3005+0.61
GBP/EUR1.1609-0.39
EUR/USD1.1203-0.22
USD/JPY100.96-0.15

European shares fell in early trading following the US Federal Reserve’s decision to delay its next rate increase. The ESTX 50 (-0.55%), CAC 40 (-0.62%), Dax (-0.21%) and UK markets (-0.27%) all posted losses in early trading. Lundbeck slumped -16.6% after the company’s highly anticipated idalopirdine Alzheimer’s treatment failed in a late stage study. Polymetal International Plc dropped -8.1% after two investors said they’ll sell 13 million shares of the company. CaixaBank SA lost -2.8% after selling shares to fund its takeover of Portugal’s Banco BPI SA. Scout24 AG dropped -4.1% after Blackstone Group LP sold shares of the company. Sports Direct International Plc gained +2.4% after saying founder Mike Ashley will take over as CEO. Persimmon Plc and Bellway Plc gained more than +3%, after Liberum upgraded the sector’s price estimates.  

US stocks climbed, building on strength from the previous session which was fuelled by the Federal Reserve’s decision keep interest rates as they are. The Dow Jones Industrial Average (+0.54%), S&P 500 (+0.65%) and the Nasdaq Composite (+0.84%) all increased. The Fed strongly signalled it could still tighten monetary policy by year end, and as of yesterday afternoon the probability of a hike at the Fed’s December meeting was 58%, according to the CME Group’s FedWatch website. Adding some support for the Fed to raise rates later this year, a report showed the number of Americans filing for unemployment benefits unexpectedly fell to a two month low. Amazon.com rose +1.9% to close above $800 for the first time following a price target raise by BMO. Apple gained +0.9% after positive analyst reports.

Asian stocks fell as Japanese exporters declined with the yen trading near a one month high after the Bank of Japan didn’t move deeper into negative interest rate territory. The S&P/ASX 200 (+1.06%) rose, but the Hang Seng (-0.31%) and the Nikkei 225 (-0.32%) both retreated. Bank of Japan Governor Haruhiko Kuroda told reporters after the policy meeting that if the yield curve is too flat, it could hurt sentiment due to worries about the financial sector. Mitsubishi UFJ Financial Group Inc jumped +7.5% and Mizuho Financial Group rose +7%. China Unicom Hong Kong Ltd jumped +4.5% after Goldman Sachs raised its recommendation on the stock from “neutral”, citing the company’s expanding base of 4G subscribers. ICBC dropped -2.6% and China Galaxy Securities lost -1.6%