Morning Spread

Morning Spread

Thursday 26th May 2016
IndexLevelChg (%)
UK Market6263.45+0.01
Dow Indust Avg17851.51+0.82
S&P 5002090.54+0.70
Nasdaq Composite4894.89+0.70
Nikkei 22516772.46+0.09
Hang Seng20397.11+0.14
IndexLevelChg (%)
Nymex 1m49.87+0.63
Gold Spot1227.52+0.25
GBP/USD1.4727-0.27
GBP/EUR1.3181+0.14
EUR/USD1.1173+0.13
USD/JPY110.05+0.15

European stocks edged higher as investors weighed back to back gains that pushed equities to their highest level in almost a month. The ESTX 50 (+0.01%), CAC 40 (+0.19%), Dax (+0.47%) and the UK markets (+0.01%) all posted gains in early trading. The Daily Mail and General Trust Plc tumbled -7.1% after its first half profit fell, hurt by a weak print advertising market. Imagination Technologies Group Plc slipped -3.5% after forecasting a wider than expected annual loss stemming from one time costs. Banco Popular slumped -25% after it announced a rights issue plan. Caixabank and Banco de Sabadell fell -3.4% and -4.5% respectively.

US stocks rose, helped by higher oil prices and investors becoming more comfortable with the prospect of an interest rate hike as early as next month. The Dow Jones Industrial Average (+0.82%), S&P 500 (+0.70%) and the Nasdaq Composite (+0.70%) all increased. Standing to benefit from higher interest rates that they can pass on to borrowers, Bank of America, JPMorgan and Citigroup rose over +1.5%. Computer Sciences soared +42% after Hewlett Packard Enterprise said it would spin off and merger it’s struggling IT services business with the company. Hewlett Packard Enterprise jumped +6.77%. Alibaba Group tumbled -6.82% after saying it was being investigated by the US Securities and Exchange Commission over whether its accounting practices violated any federal laws.

Asian stocks rose as optimism the US economy is strong enough for increased interest rates fuelled a global equity rally. Mitsubishi Motors Corp climbed +5.3% to be the biggest gainer on the Nikkei 225. Haseko Corp rose +5.2% after Daiwa Securities Group raised its rating on the company to “buy” from “outperform”. Takata Corp surged +21% after the Nikkei newspaper reported KKR & Co may support and take control of the company responsible for the biggest safety recall in auto industry history. Inpex Corp jumped +2.6% and JX Holdings added +1.4% as crude oil exceeded $50.