Morning Spread

Morning Spread

Monday 27th July 2015
IndexLevelChg (%)
UK Market6575.45-0.07
Dow Indust Avg17568.53-0.92
S&P 5002079.65-1.07
Nasdaq Composite5088.63-1.12
Nikkei 22520350.10-0.95
Hang Seng24351.96-3.09
IndexLevelChg (%)
Nymex 1m47.90-0.50
Gold Spot1103.24+0.38
GBP/USD1.5529-0.14
GBP/EUR1.4018-0.79
EUR/USD1.1078+0.86
USD/JPY123.48+0.27

European stocks declined this morning as lingering fears over China’s economic growth prospects and a sharp commodities sell-off rippling through global markets. The ESTX 50 (-1.08%), UK markets (-0.25%), CAC 40 (-1.20%) and the Dax (-1.05%) all posted losses in early trading. Ryanair lost -1% after saying that over-capacity could weigh on average fares. Merlin Entertainments Plc dropped -3.7% after lowering its forecast for earnings in 2015 following a roller coaster accident in June. UBS declined -1.9% after reporting better than expected second quarter profit. Valeo SA slid -3.3% after posting first half sales that matched analysts’ projections. Royal Phillips NV gained +3.5% after posting better than expected earnings on rising demand in North America, Eastern Europe and India.

 

US markets dropped as slowing global growth dragged commodity related stocks lower. The Dow Jones Industrial Average (-0.92%), S&P 500 (-1.07%) and the Nasdaq Composite (-1.12%) all retreated. Stocks in the energy and materials sectors weighed heavily on the market after weaker than expected economic data from China and the euro-zone raised concerns about global growth. Oil prices hit their lowest since March. Biogen lost -22% after more than halving its revenue growth forecast for 2015. Amazon rose more than +20% at one point and closing up +10% after posting an unexpected quarterly profit. Visa rose +4.3% after reporting results that handily beat expectations.

 

Asian shares dropped following losses on Wall Street and worries over China. The Nikkei 225 (-0.95%) and the Hang Seng (-2.99%) both retreated, while the S&P/ASX 200 (+0.43%) gained. Investor sentiment was soured by official data released that showed profit at China’s industrial firms dropped 0.3% in June from a year earlier, reversing a 0.6% rise in May. This adds to pressure on an economy that is struggling to regain momentum, after data on Friday showed that China’s factory sector contracted the most in July. China Unicom, Bank of Communications and PetroChina slumped by the daily limit of -10%.