Morning Spread

Morning Spread

Tuesday 25th August 2015
IndexLevelChg (%)
UK Market6037.38+2.35
Dow Indust Avg15871.35-3.57
S&P 5001893.21-3.94
Nasdaq Composite4526.25-3.82
Nikkei 22517806.70-3.96
Hang Seng21404.96+0.72
IndexLevelChg (%)
Nymex 1m38.99+1.96
Gold Spot1148.82-0.54
GBP/USD1.5796-0.34
GBP/EUR1.3670+0.12
EUR/USD1.1555+0.23
USD/JPY119.51-0.27

European shares rose this morning after a sharp sell-off yesterday saw around €450 billion wiped off the value of leading stocks. The ESTX 50 (+3.62%), UK markets (+2.32%), CAC 40 (+3.59%) and the Dax (+3.21%) all posted gains in early trading. Syngenta AG jumped +8.6% after it was reported that Monsanto Co has made an increased takeover offer for the company. RSA Insurance Group Plc climbed +4.7% after Zurich Insurance Group AG proposed to buy it. BHP Billiton Ltd rallied +5.4% after saying it will increase its dividend, even with commodities near their lowest levels since 1999. Royal DSM NV added +3.1% after announcing that it will cut jobs. Randgold Resources Ltd lost -2.1% as gold fell.

 

US stocks plunged as investors concerned about China’s economy, sold heavily in an unusually volatile session that confirmed the S&P 500 was formally in a correction. The Dow Jones Industrial Average (-3.57%), S&P 500 (-3.94%) and the Nasdaq Composite (-3.82%) all retreated. It was the S&P 500’s worst day since 2011 and followed an -8.5% slump in Chinese markets, which sparked a sell-off in global stocks along with oil and other commodities. Exxon and Chevron each fell more than -4.7%. US oil and gas companies have already lost about $310 billion of market value so far this year. Alibaba lost -3.49% to $65.80, below its IPO price of $68, making it the second high profile tech company to fall below its IPO in the past week after twitter.

 

Asian stocks rose, reversing losses to rebound from their lowest levels in two years, as banks in Japan and Australia rallied and technology companies advanced. The Hang Seng (+0.67%) and the S&P/ASX 200 (+2.72%) both increased, while the Nikkei 225 (-3.96%) dropped. Japanese steel makers suffered heavy losses as the Topix steel subindex shed -4.6%. Commodity stocks and trading houses linked to them also suffered sharp declines with JFE Holdings losing -5.1%. In China, 17% of listed mainland shares were halted from trading. About 40% have been suspended during the depths of last month’s rout. Industrial & Commercial Bank of China Ltd fell -5.1% and Agricultural Bank of China Ltd dropped -9%. Futures on the CSI 300 sank by the 10% daily limit.