Morning Spread

Morning Spread

Tuesday 28th July 2015
IndexLevelChg (%)
UK Market6528.75+0.36
Dow Indust Avg17440.59-0.73
S&P 5002067.64-0.58
Nasdaq Composite5039.78-0.96
Nikkei 22520328.99-0.10
Hang Seng24503.94+0.62
IndexLevelChg (%)
Nymex 1m47.03-0.76
Gold Spot1095.88+0.17
GBP/USD1.5581-0.07
GBP/EUR1.4086+0.54
EUR/USD1.1062-0.46
USD/JPY123.55-0.27

European shares advanced this morning after some strong company results and mergers and acquisitions news supported the market. The ESTX 50 (+0.32%), UK markets (+0.48%), CAC 40 (+0.25%) and the Dax (+0.23%) all posted gains in early trading. RSA Insurance Group surged +12.9% after Zurich Insurance said it was weighing up a bid for the group with a market capitalisation of £4.4 billion. Melrose jumped +15% after saying it would sell its Elster business to Honeywell International for £3.3 billion in cash. Kering rose +5.6% after Gucci, the flagship brand of the French luxury and sportswear group, posted a 4.6% in underlying second quarter sales, marking a much sooner than expected rebound under its new creative and management duo. GKN Plc climbed +3.9% after agreeing to buy Fokker Technologies Group.

 

US stocks declined after the steepest decline in Chinese stocks in eight years increased concerns that cooling growth in the world’s No.2 economy could hurt China’s trading partners. The Dow Jones Industrial Average (-0.73%), S&P 500 (-0.58%) and the Nasdaq Composite (-0.96%) all retreated. With second quarter reports well under way, analysts expect overall earnings of S&P 500 companies to dip 0.3% and revenue to decline 3.9%, according to Thomson Reuters data. Teva Pharmaceutical’s shares jumped +16.41% to a record high of $72.00 after the company agreed to buy Allergan’s genetic drug business for $40.5 billion, giving up on its bid to buy Mylan, Allergan rose +6.09% while Mylan fell -14.51%. Fiat Chrysler fell -4.88% after a US auto safety watchdog announced a $105 million fine against the company over lapses in safety recalls.

 

Asian stocks were mixed as Chinese shares see-sawed after Beijing scrambled to prop them up while some investors took shelter from market volatility in safe haven assets such as government bonds and the Japanese yen. The Nikkei 225 (-0.10%) and the S&P/ASX 200 (-0.09%) retreated, while the Hang Seng (+1.02%) increased. Laox Co, a company that sells about 70% of its appliances to Chinese tourists, gained +1.2%. Japan Exchange Group Inc jumped +3.7% after first quarter operating profit rose 38%. Komatsu Ltd dropped -2.1%. PetroChina Co, long considered a favourite holding of state linked rescue funds, declined -4.2%. China Railway Group Ltd slumped -8% for a three day 20% retreat. Hundsun Technologies Inc plunged by the daily limit of 10% for a second day.