Morning Spread

Morning Spread

Friday 26th February 2016
IndexLevelChg (%)
UK Market6088.89+1.27
Dow Indust Avg16697.29+1.29
S&P 5001951.70+1.13
Nasdaq Composite4582.21+0.87
Nikkei 22516188.41+0.30
Hang Seng19364.15+2.52
IndexLevelChg (%)
Nymex 1m33.61+1.63
Gold Spot1231.51-0.12
GBP/USD1.4011-0.42
GBP/EUR1.2731+0.73
EUR/USD1.1006-0.31
USD/JPY112.94-0.24

European stocks rose as investors assessed earnings reports, and amid speculation that central banks will further support global growth. The ESTX 50 (+2.26%), UK markets (+1.24%), CAC 40 (+2.12%) and the Dax (+2.41%) all posted gains in early trading. Royal Bank of Scotland Group Plc tumbled -8.1% after saying it would take longer than originally planned to resume shareholder payouts after reporting its eighth consecutive annual loss. BASF SE rose +1.4% after proposing a higher dividend, even as it forecast earnings to drop as much as 10% in 2016. Erste Group Bank AG added +2.8% after projecting profit will rise this year, allowing it to continue dividend payouts.

US stocks rose as higher oil prices reduced fears that banks could be hit by defaults and investors saw opportunities after weeks of volatility. The Dow Jones Industrial Average (+1.29%), S&P 500 (+1.13%) and the Nasdaq Composite (+0.87%) all advanced. Also helping sentiment, orders for durable goods rose more than expected in January as demand picked up across the board, offering a ray of hope for the manufacturing sector. Salesforce.com Inc surged +11.03% after reporting higher than expected revenue and raised its full year forecast. Sturm Ruger & Co jumped +7.8% after reporting quarterly results that beat Wall Street’s expectations. Microsoft rose +1.44%.

Asian stocks gained as a gathering of world finance leaders provided some reassuring comments, but little in the way of actual policy stimulus. The Hang Seng (+2.52%) and the Nikkei 225 (+0.30%) were both positive, while the S&P/ASX 200 (-0.02%) was flat. Sharp Corp tumbled -11% after a deal with Foxconn Technology Group appeared at risk just hours after the company won a vote to take control. Sharp’s biggest competitor Japan Display Inc surged +7.9%. Eighteenth Bank Ltd soared +11% after agreeing to merge with Fukuoka Financial Group Inc.