Morning Spread

Morning Spread

Monday 24th October 2016
IndexLevelChg (%)
UK Market7036.20+0.22
Dow Indust Avg18145.71-0.09
S&P 5002141.16-0.01
Nasdaq Composite5257.40+0.30
Nikkei 22517234.42+0.29
Hang Seng23604.08+0.98
IndexLevelChg (%)
Nymex 1m50.93+0.16
Gold Spot1265.48-0.06
GBP/USD1.22340.00
GBP/EUR1.1234-0.05
EUR/USD1.0890+0.05
USD/JPY103.91-0.11

European shares rose this morning, buoyed by Zodiac Aerospace and by media firms, which benefited from merger moves in the United States. The ESTX 50 (+0.78%), CAC 40 (+0.70%), Dax (+0.80%) and the UK markets (+0.27%) all posted gains in early trading. Zodiac Aerospace rose +3% as it benefitted from merger and acquisition activity in its sector, with Rockwell Collins striking a deal to buy B/E Aerospace for $62 a share in cash and stock. ITV was up +2.3% and Sky gained +1.5% after AT&T Inc agreed to buy Time Warner Inc for $85.4 billion over the weekend.

US stocks were little changed as a record day for Microsoft and earnings from McDonald’s helped offset a fall in energy and healthcare shares. The Dow Jones Industrial Average (-0.09%) and the S&P 500 (-0.01%) were pretty flat, while the Nasdaq Composite (+0.30%) gained. Johnson & Johnson and Merck were both down -1.2%, and among the biggest drags on the healthcare sector. Schlumberger weighed on the energy sector as it lost -3% after its quarterly results. But gains in Microsoft and McDonald’s on the back of their strong quarterly reports helped keep losses in check. Microsoft was up +4.3% at a record closing high of $59.69, while McDonald’s was up +3%. Reynolds American jumped +14% after British American Tobacco offered to buy the 58% of the company it does not already own in a $47 billion takeover.

Asian stocks gained but lacked clear direction after Wall Street’s sluggish performance late last week, while the dollar hit a near nine year high as comments from a Federal Reserve official boosted bets of a rate hike by year end. The S&P/ASX 200 (-0.40%) declined, while the Hang Seng (+0.98%) and the Nikkei 225 (+0.29%) both increased. Nanjing Panda Electronics plunged -16.9% after saying it had scrapped a restructuring plan aimed at improving profitability. Nintendo slid -4.8% after the Nikkei newspaper reported the group is likely to post a 5 billion yen operating loss for the first half of the fiscal year, against a 3 billion yen gain estimated by analysts. Astellas rose +3.5% after the Nikkei newspaper reported first half operating profit for the company increased 20%.