Morning Spread

Morning Spread

Wednesday 23rd September 2015
IndexLevelChg (%)
UK Market6003.92+1.15
Dow Indust Avg16330.47-1.09
S&P 5001942.74-1.23
Nasdaq Composite4756.72-1.50
Nikkei 22518070.21-1.96
Hang Seng21302.91-2.26
IndexLevelChg (%)
Nymex 1m46.82+0.99
Gold Spot1126.92+0.20
GBP/USD1.5320+0.34
GBP/EUR1.3768-0.37
EUR/USD1.1127+0.03
USD/JPY120.16-0.15

European shares rallied this morning after some positive manufacturing reports from the region, while Volkswagen continued its slide following allegations of rigging emission tests. The ESTX 50 (+0.35%), UK markets (+0.66%), CAC 40 (+0.27%) and the Dax (+0.36%) all posted gains in early trading. Volkswagen shares fell nearly -7%, after plummeting -18.6% on Monday and 19.8% on Tuesday, after the company said the scandal could affect 11 million of its cars around the globe as investigations of its diesel models multiplied. PSA Peugeot Citroen and Renault SA both fell more than -4%.  Coloplast fell -6.7% after saying it will take further provision of 3 billion Danish crowns to cover potential settlements and costs in relation to litigation in the United States. Premier Oil jumped +12% after saying that production is ahead of its 2015 guidance. Glencore lost -2.2%.

 

 

US stocks dropped as a selloff in commodities dragged down materials companies. The Dow Jones Industrial Average (-1.09%), S&P 500 (-1.23%) and the Nasdaq Composite (-1.50%) all retreated. Lingering worries about slower growth in China pushed commodities to two week lows, with copper prices and industrial metals leading losses. S&P materials sector dropped -1.8% and led the decline for the S&P 500. Newmont Mining was down -6.3%. News that Volkswagen admitted to cheating on vehicle emission tests sparked a global selloff in auto stocks. Shares of Volkswagen suppliers BorgWarner and Delphi Automotive had among the biggest drops, with BorgWarner shares down -7.6%, the S&P 500’s biggest percentage decliner, while Delphi lost -3.6%. Ford dropped -2.8%.

 

Asian stocks retreated after factory activity in China shrank more than expected, adding to fears of a weakening global economy and sending investors into safer assets such as government bonds. The Nikkei 225 (-1.96%), Hang Seng (-2.25%) and the S&P/ASX 200 (-2.07%) all decreased. Activity in China’s factory sector failed to improve in September as expected, and instead shrank for a seventh straight month to its weakest level in over 6 years. The findings could add to fears that China’s economy is cooling more sharply than earlier expected, though most analysts still believe a gradual albeit bumpy slowdown is more likely. The Asian Development Bank lowered its growth forecast for China to 6.8% for 2015. Baoshan Iron & Steel Co Ltd fell over -3% on fears that economic cooling would weaken demand for the metal. CITIC Securities tumbled -4%.