Morning Spread

Morning Spread

Thursday 27th August 2015
IndexLevelChg (%)
UK Market6104.20+2.09
Dow Indust Avg16285.51+3.95
S&P 5001940.51+3.90
Nasdaq Composite4697.54+4.24
Nikkei 22518574.44+1.08
Hang Seng21838.54+3.60
IndexLevelChg (%)
Nymex 1m40.03+3.70
Gold Spot1126.40+0.10
GBP/USD1.5491-0.02
GBP/EUR1.3725+0.91
EUR/USD1.1286-0.87
USD/JPY120.38-0.85

European shares rose this morning, buoyed by gains in Asian and US markets after a leading US central bank official said the prospect of a September rate rise was becoming less likely. The ESTX 50 (+2.68%), CAC 40 (+2.54%), Dax (+2.74%) and the UK markets (+2.09%) all posted gains in early trading. CRH Plc climbed +5% after agreeing to buy C.R.Laurence Co, expanding in products used in window installations. Bouygues SA rose +5.5% after raising its 2015 profit target for its phone operations. Fresenius SE added +4.7% after saying it expects to increase its dividend by at least 20% this year. Pernod Ricard SA fell -1.8% after reporting full year profit that missed estimates. Gemalto NV lost -4.9% after reporting that adjusted earnings fell short of projections.

 

US stocks rallied for their biggest one day gain in four years as fears about China’s economy gave way to bargain hunters emboldened by expectations the US Federal Reserve might not raise interest rates next month. The Dow Jones Industrial Average (+3.95%), S&P 500 (+3.90%) and the Nasdaq Composite (+4.24%) all advanced. In a sign that a faltering Chinese economy and slumping global financial markets could affect US monetary policy, New York Fed President William Dudley said the prospect of a September rate hike seemed less compelling than it was just weeks ago. Apple, which had taken a beating in recent weeks because of concern about demand in China for iPhones, provided the biggest boost to the S&P 500 and Nasdaq composite index, jumping +5.73%. Google surged +7.72% after Goldman Sachs raised its rating to “buy” from “neutral”. Amazon jumped +7.38%.

 

Asian stocks rose as a sharp rebound on Wall Street eased fears of a protracted global markets rout. The S&P/ASX 200 (+1.17%), Hang Seng (+3.89%) and the Nikkei 225 (+1.08%) all gained. PetroChina Co rallied +5.7% after oil in New York gained as much as 3.1% as US government data showed crude inventories unexpectedly shrank in the world’s biggest oil consumer. China Life Insurance Co surged +7.7% after its first half profit climbed to 31.5 billion yuan from 18.4 billion yuan a year earlier. ZTE Corp jumped +16% in Hong Kong after reporting that first half profit climbed by 43%. Dai-ichi Insurance Co advanced +2.9% after Mitsubishi UFJ Financial Group Inc said the company is likely to revise earnings higher.