Morning Spread

Morning Spread

Wednesday 26th August 2015
IndexLevelChg (%)
UK Market5997.83-1.37
Dow Indust Avg15666.44-1.29
S&P 5001867.61-1.35
Nasdaq Composite4506.49-0.44
Nikkei 22518376.83+3.20
Hang Seng21080.39-1.52
IndexLevelChg (%)
Nymex 1m39.32+0.03
Gold Spot1137.58-0.25
GBP/USD1.5666+0.19
GBP/EUR1.3652-0.65
EUR/USD1.1474+0.45
USD/JPY119.43+0.41

European shares fell this morning, tracking similar declines in other markets due to persistent concerns over China’s economy. The ESTX 50 (-1.23%), CAC 40 (-1.17%), Dax (-1.23%) and the UK markets (-1.01%) all posted losses in early trading. Glencore Plc, Antofagasta Plc and Anglo American Plc retreated more than -3.5% as a gauge of UK mining shares dropped to its lowest level since 2009. Paddy Power Plc and Betfair Group Plc surged more than 16% after the betting companies agreed to merge. Vodafone Group Plc dropped -1.8% after agreeing to buy wireless spectrum rights from Qualcomm Inc. Transocean Ltd plunged -9.6% after saying it plans to halt investor payouts and book 2 billion Swiss francs in asset impairments after an oil price crash.

 

US stocks declined as concern about China’s economy outweighed lower valuations that some earlier saw as bargains. The Dow Jones Industrial Average (-1.29%), S&P 500 (-1.35%) and the Nasdaq Composite (-0.44%) all decreased. Earlier the S&P rose as much as +2.9%, the Dow as much as +2.8% and the Nasdaq as much as +3.6%. JPMorgan cut its year-end target for the S&P 500 to 2,150 from 2,250. Data on Tuesday showed US consumer confidence increased to a seven month high in August. New US single family home sales rebounded in July, adding to evidence of underlying strength in the economy that could allow the Federal Reserve to raise interest rates this year. Pepco Holdings Inc fell -16.47% after a district of Columbia regulator denied Exelon Corp’s $6.8 billion bid for the power utility, possibly delivering a knockout blow to the deal. Best Buy jumped +12.57% after reporting an unexpected increase in quarterly sales.

 

Asian were mixed as investors feared fresh rate cuts in China would not be enough to stabilise its slowing economy or end a collapse of Chinese stocks that is impacting global markets, yet Japanese stocks rebounded as bargain hunters snapped up major stocks such as banks and exporters. The Nikkei 225 (+3.20%) and the S&P/ASX 200 (+0.69%) both rallied, but the Hang Seng (-0.89%) retreated. Kyushu Electric Power Co jumped +5.2% after saying it will boost output at a nuclear reactor it restarted this month. Fuji Heavy Industries Ltd rallied +6.8% as Credit Suisse Group AG said recent selling was overdone. TDK Corp, was the biggest gainer on Nikkei 225, soaring +10% to recoup two thirds of its losses from the previous three sessions. Hundsun Technologies Inc tumbled -10%. China Construction Bank Corp rallied +5.2% and Bank of Beijing Co surged +9%.