Morning Spread

Morning Spread

Friday 28th August 2015
IndexLevelChg (%)
UK Market6177.61-0.23
Dow Indust Avg16654.77+2.27
S&P 5001987.66+2.43
Nasdaq Composite4812.71+2.45
Nikkei 22519136.32+3.03
Hang Seng26612.39-1.04
IndexLevelChg (%)
Nymex 1m42.10-1.08
Gold Spot1127.33+0.22
GBP/USD1.5388+0.12
GBP/EUR1.3636-0.55
EUR/USD1.1284+0.43
USD/JPY120.80+0.36

European stocks retreated this morning as they failed to hold on to the previous day’s gains in a week of wild swings. The ESTX 50 (-0.40%), UK markets (-0.18%), CAC 40 (-0.26%) and the Dax (-0.79%) all posted losses in early trading. Fears of a slowdown in global economic growth have sparked big price swings across equities, currencies and commodities this week. These fears have yet to leave the market, even if loose monetary policy is expected to support stock prices. Miners and energy shares were the only groups to advance, with Glencore Plc up +2.8% and Seadrill Ltd rallying +7.6%. Havas gained +1.5% after the company reported second quarter like-for-like sales growth of 5.5%. Hermes fell -1% despite a 20% rise in first half operating income in line with expectations.  

 

US stocks rallied as strong US economic data and hints that a September interest rate hike was unlikely fuelled by optimism that the worst of recent market turmoil was over. The Dow Jones Industrial Average (+2.27%), S&P 500 (+2.43%) and the Nasdaq Composite (+2.45%) all increased. Data on Thursday showed that the US economy grew 3.7% in the second quarter, much faster than the previous estimate of 2.3%. The recent drop in US shares reduced valuations some investors had seen as pricey. The S&P 500’s valuation was about 15.4 times expected earnings as of Wednesday’s close, compared to around 17 for much of 2015. Giving the biggest boost to the S&P and Nasdaq, shares of Apple surged +2.94%. The company invited journalists to a Sept 9th event, where it is expected to unveil new iPhones. Tesla was up +8.07% after its Model S P85D received the highest possible score in tests by Consumer Reports magazine.

 

Asian stocks rose as a global rally gathered pace and the US economy grew faster than expected in the second quarter. The Nikkei 225 (+3.03%) and S&P/ASX 200 (+0.58%) both advanced, while the Hang Seng (-1.04%) declined. The weaker Yen boosted Japanese exporters. Fuji Heavy Industries, which gets 60% of revenue from the US, surged +5.6%. Toyota Motor Corp advanced +4.6%. Mitsubishi Corp jumped +6.2% after agreeing to spend $1.09 billion on a Singapore based food commodity trader Olam International. Nexon Co surged +6.3% after Mitsubishi UFJ Morgan Stanley Securities Co raised its rating on the stock to “overweight”.