Morning Spread

Morning Spread

Wednesday 27th July 2016
IndexLevelChg (%)
UK Market6738.90+0.22
Dow Indust Avg18473.75-0.10
S&P 5002169.18+0.03
Nasdaq Composite5110.05+0.24
Nikkei 22516664.82+1.72
Hang Seng22218.99+0.40
IndexLevelChg (%)
Nymex 1m42.85-0.16
Gold Spot1318.75-0.12
GBP/USD1.3133+0.05
GBP/EUR1.1938-0.18
EUR/USD1.1002+0.12
USD/JPY105.54-0.72

European stocks rose this morning after several companies reported positive results. The ESTX 50 (+0.85%), CAC 40 (+1.41%), Dax (+0.82%) and the UK markets (+0.28%) all posted gains in early trading. LVMH was up +5.8% after its fashion and leather Q2 sales beat forecasts, helped by solid demand in the United States and improving trading in Asia, excluding Japan. Christian Dior and Kerring also gained +4% and 2.9% respectively. Peugeot jumped +7.5% following a well received update. Volkswagen gained +2.9% after a $14.7 billion settlement of its US diesel emissions cheating scandal cleared another legal hurdle as a federal judge gave the company preliminary approval to buy back up to 475,000 vehicles. BASF fell -3% after reporting a drop in Q2 profit.

US stocks were mixed as Federal Reserve policymakers kicked off a two day interest rate meeting and investors awaited quarterly results from Apple and Twitter. The Dow Jones Industrial Average (-0.10%) dipped, The S&P 500 (+0.03%) was flat and the Nasdaq Composite (+0.24%) increased. The Federal Reserve began a two day meeting and while it is not expected to raise US interest rates, investors will be watching for hints about when the US central bank might make a move. Verizon Communications fell -1.9% after subscriber numbers fell below estimates. Caterpillar’s shares jumped +5.16% to touch a year high after quarterly earnings beat expectations. Apple dipped -0.69% ahead of its quarterly report after the bell. In extended trade, Apple surged +4% after reporting more iPhone sales than expected for the June quarter. Twitter slumped -9% after reporting its slowest quarterly revenue growth since going public in 2013.

Asian stocks settled near one year highs while the yen slumped after Japan’s government announced a larger than expected economic stimulus package which led most of the region’s bourses higher. The S&P/ASX 200 (+0.04%), Hang Seng (+0.40%) and the Nikkei 225 (+1.72%) all advanced. Sands China jumped +5% after the company’s owner said he’s optimistic that recreational gamblers and tourists are helping a recovery in Macau. Galaxy Entertainment Group Ltd added +6.5% in Hong Kong, while Wynn Macau Ltd surged +7.3%. Shandong Gold Mining Co rallied +7.2% as bullion prices rose after a two day decline. Yanzhou Coal Mining Co paced energy companies higher with a +2.1% gain.