Morning Spread

Morning Spread

Tuesday 28th June 2016
IndexLevelChg (%)
UK Market6108.40+2.11
Dow Indust Avg17140.24-1.50
S&P 5002000.54-1.81
Nasdaq Composite4594.44-2.41
Nikkei 22515323.14+0.09
Hang Seng20172.46-0.27
IndexLevelChg (%)
Nymex 1m47.16+1.79
Gold Spot1313.15-0.86
GBP/USD1.3308-0.71
GBP/EUR1.2029+0.48
EUR/USD1.1063+0.23
USD/JPY102.14-0.31

European stocks advanced as investors speculated that policy makers may take action to shore up markets after the post-Brexit rout. The ESTX 50 (+2.42%), CAC 40 (+2.36%), Dax (+1.98%) and UK markets (+2.15%) all rallied this morning. EU leaders gather in Brussels today for the start of a two day European Council summit to discuss Britain’s decision to leave the bloc. Nestle SA advanced +3.2% after naming Ulf Mark Schneider as successor to CEO Paul Bulcke. G4S Plc jumped +8.7% after Credit Suisse Group AG upgraded the company’s rating to “buy” from “neutral”, citing benefits from a weaker pound and the stability of its business. Redrow Plc climbed +2.9% after forecasting that full year profit may beat analysts’ estimates.

US stocks tumbled after Britain’s vote to leave the European Union, sending major US indexes to their worst day drop in 10 months. The Dow Jones Industrial Average (-1.50%), S&P 500 (-1.81%) and the Nasdaq Composite (-2.41%) all retreated. US Treasury Secretary Jack Lew said he sees no signs of a financial crisis arising from Britain’s decision, although the result does present additional headwinds for the US economy. Banks continued to be among the worst hit as traders discounted chances the US Federal Reserve will raise interest rates in the near term. Bank of America down -6.3% and JPMorgan off -3.3%, were among the biggest drags on the S&P.

Asian stocks erased early losses and most Japanese shares rose amid speculation policy makers will move to shore up financial markets. The S&P/ASX 200 (-0.66%) and the Hang Seng (-0.27%) both finished negative, while the Nikkei 225 (+0.09%) was positive. Japanese construction firms, warehouse stocks and food producers led gains. Taisei Corp rose +1.7%, while construction firm Maeda Corp jumped +5%. General contractor Obayashi Corp climbed +2.3%. Standard Chartered Plc fell -2.8%, poised for its steepest three day loss since 2012. CK Hutchison, which generated 37% of its total earnings before interest and taxes from the UK last year, dropped -2.5%.