Morning Spread

Morning Spread

Thursday 28th April 2016
IndexLevelChg (%)
UK Market6236.50-1.32
Dow Indust Avg18041.55+0.28
S&P 5002095.15+0.16
Nasdaq Composite4863.14-0.51
Nikkei 22516666.05-3.61
Hang Seng21388.03+0.12
IndexLevelChg (%)
Nymex 1m43.58+0.11
Gold Spot1257.59+0.94
GBP/USD1.4605-0.34
GBP/EUR1.2866+0.09
EUR/USD1.1352+0.25
USD/JPY108.22+2.85

European stocks declined this morning after the Bank of Japan unexpectedly refrained from increasing stimulus measures. The ESTX 50 (-1.73%), CAC 40 (-1.40%), Dax (-1.23%) and the UK markets (-1.29%) all posted losses in early trading. Banking results were also at the fore. Banco Bilbao Vizcaya Argentaria SA slid -7.5% after its quarterly earnings tumbled 54%, missing estimates. Lloyds banking Group plc lost -4.2% after its revenue and net income fell. Deutsche Bank AG rose +3.3% after it posted a surprise profit. Airbus Group NV dropped -5.9% after reporting a drop in earnings and saying fresh problems with a transport plane could hurt future profit. Sanofi retreated -1.7% after making an unsolicited offer to buy Medivation Inc for about $9.3 billion in cash.

US stocks rose after fears eased that the Federal Reserve would strongly signal it would raise interest rates in June. The Dow Jones Industrial Average (+0.28%) and the S&P 500 (+0.16%) both advanced, while the Nasdaq Composite (-0.51%) declined. Economists polled by Reuters expect two rate increases this year but futures prices show traders do not expect a hike until at least September. Exxon Mobil rose +0.9% after raising its quarterly dividend to 75 cents from 73 cents. The dividend rise came a day after Standard & Poor’s cut Exxon’s credit rating, in part for being too generous with shareholders. Apple dropped more than -6% following its first revenue decline in over a decade. After the closing bell, Facebook’s shares jumped more than +8% after the company beat estimates on both earnings and revenue.

Asian shares were mixed as the yen surged against the dollar after the Bank of Japan defied market expectations for more monetary stimulus even as prices slipped deeper into deflationary territory. The S&P/ASX 200 (+0.73%) and the Hang Seng (+0.12%) both increased, while the Nikkei 225 (-3.61%) dropped. Along with keeping policy unchanged, the BOJ cut its inflation forecasts. It also pushed back the timing for hitting its 2% price target by six months, saying it may not happen until March 2018 at the latest. Nomura Holdings Inc, Japan’s largest securities company, plunged -10%. Mitsubishi UFJ Financial Group Inc dropped -6%.