Morning Spread

Morning Spread

Friday 26th August 2016
IndexLevelChg (%)
UK Market6809.76-0.10
Dow Indust Avg18448.41-0.18
S&P 5002172.47-0.14
Nasdaq Composite5212.20-0.11
Nikkei 22516360.71-1.18
Hang Seng22909.54+0.41
IndexLevelChg (%)
Nymex 1m47.15-0.38
Gold Spot1325.11+0.24
GBP/USD1.3221-0.26
GBP/EUR1.1714+0.18
EUR/USD1.1287+0.08
USD/JPY100.45+0.08

European stocks were little changed as investors awaited Janet Yellen’s speech for indications on the path of future interest rate increases. The ESTX 50 (-0.22%), CAC 40 (-0.21%), Dax (-0.25%) and the UK markets (-0.02%) all posted losses in early trading. Vivendi SA fell -1.7% after reporting quarterly earnings that missed analyst estimates. Gemalto NV climbed +3.8% after posting an increase in net profit and said it is interested in buying Safran SA’s Morpho. Restaurant Group Plc climbed +5.1% after keeping its full-year pretax profit forecast and posting an increase in first half revenue. Miners rebounded, with Glencore Plc and Rio Tinto Group up at least +1.4%.

US stocks declined, weighed by a drop in healthcare and consumer stocks, while financials advanced slightly after two more Federal Reserve officials pushed the case for a rate hike. The Dow Jones Industrial Average (-0.18%), S&P 500 (-0.14%) and the Nasdaq Composite (-0.11%) all decreased. St Jude Medical shares fell -5% after Muddy Waters said it bet that the shares would fall because of cyber security vulnerabilities in the company’s cardiac devices. Mylan shares lost -0.7% as the company continued to face pressure over the price of its EpiPen allergy treatment. Dollar Tree was down -9.9%, Dollar General dropped -17.7% and Signet Jewelers slumped -12.6% after all three reported disappointing results.

Asian stocks fell as investors showed a reluctance to take on risk before Janet Yellen’s speech later today. The S&P/ASX 200 (-0.48%) and the Nikkei 225 (-1.18%) both retreated, while the Hang Seng (+0.41%) increased. Capcom Co jumped +5% after saying it would buy back as much as 3.3 billion yen of its shares. Toyobo Co posted the biggest decline on the Nikkei 225 sinking -4.7% after SMBC Nikko Securities Inc cut its target price on the stock. JFE Holdings Inc advanced +2.7%. Toyota slipped -3.4% after Citi downgraded the stock saying recent strength in the yen against European currencies will hurt price competitiveness of vehicles made in Japan. Citi also cut its rating on Mazda Motor Corp, which dropped -1.9%.