Morning Spread

Morning Spread

Thursday 24th March 2016
IndexLevelChg (%)
UK Market6135.47-1.03
Dow Indust Avg17502.59-0.45
S&P 5002036.71-0.64
Nasdaq Composite4768.86-1.09
Nikkei 22516892.33-0.64
Hang Seng20345.61-1.31
IndexLevelChg (%)
Nymex 1m39.12-1.68
Gold Spot1216.72-0.28
GBP/USD1.4084+0.20
GBP/EUR1.2615-0.02
EUR/USD1.1165-0.18
USD/JPY112.88-0.31

European markets declined this morning, tracking losses on Wall Street and Asia, with a firmer dollar impacting commodity prices while hawkish comments from another Fed official put pressure on the market. The ESTX 50 (-1.27%), CAC 40 (-1.44%), Dax (-1.08%) and the UK markets (-1.15%) all posted losses in early trading. Anglo American Plc, Glencore, Rio Tinto, Fresnillo and ArcelorMittal  all dropped between -3.9% and 7%. Next Plc fell -7.4% after posting a 5% rise in annual profit but cautioned 2016 could be the toughest year it has faced since 2008 as it anticipates a more difficult economic environment.  

US stocks declined as oil and materials share prices dropped while investors remained cautious. The Dow Jones Industrial Average (-0.45%), S&P 500 (-0.64%) and the Nasdaq Composite (-1.09%) all decreased. US stocks fading five week rally was further diminished by comments over the past two days by Federal Reserve officials, who expressed views that suggested an appetite for more US interest rate hikes than investors had anticipated. Nike dropped -3.8% after reporting quarterly revenue below estimates. Gilead Sciences was down -3.9% while Merck gained +0.1% after a federal jury upheld the validity of two Merck patents in a high profile dispute over Gilead’s cure for hepatitis C. Vertex Pharmaceuticals fell -7.6% after Goldman Sachs cut its price target.

Asian stocks fell as oil tumbled below $40 a barrel and investors considered the direction of US monetary policy. The S&P/ASX 200 (-1.13%), Hang Seng (-1.31%) and the Nikkei 225 (-0.64%) all retreated. Mitsui & Co tumbled -7.5% after booking more than $2 billion in impairment charges and forecast its first net loss in its modern history. Mitsubishi Corp fell -4.1% after saying it expects to book an impairment charge of $3.8 billion on its commodities business and also forecast a net loss for the year. Inpex Corp dropped -5% in Tokyo, pacing losses among energy producers as crude oil futures extended declines.