Morning Spread

Morning Spread

Monday 28th September 2015
IndexLevelChg (%)
UK Market6041.18-1.11
Dow Indust Avg16314.67+0.70
S&P 5001931.34-0.05
Nasdaq Composite4686.50-1.01
Nikkei 22517645.111.32
Hang Seng21186.32+0.43
IndexLevelChg (%)
Nymex 1m45.28-0.92
Gold Spot1138.43-0.70
GBP/USD1.5230-0.33
GBP/EUR1.3619+0.43
EUR/USD1.1184-0.10
USD/JPY120.21+0.31

European stocks dropped as yesterday’s election victory by Catalan separatists set the region on a collision course with Spain’s central government over independence. The ESTX 50 (-0.47%), UK markets (-0.64%), CAC 40 (-0.69%) and the Dax (-0.68%) all posted losses in early trading. Vodafone fell -2.9% after saying it had ended talks with Liberty Global about an exchange of assets. Roche Holding AG added +2.5% after saying its experimental cancer treatment shrank lung and bladder tumours in separate studies. Novo Nordisk A/S gained +3.7% after US regulators approved its diabetes drug. Volkswagen AG dropped -1.8% and Porsche declined -2.4%.

 

US stocks erased an early Fed driven rally to close slightly down, as a selloff in bio-techs offset gains in banking shares. The Dow Jones Industrial Average (+0.70%) increased, while the S&P 500 (-0.05%) and the Nasdaq Composite (-1.01%) both declined. The Dow ended solidly in positive territory, helped by shares of Nike, which hit a record high after its profit topped expectations on strong China growth. The stock rose +8.9% and gave the biggest boost to the Dow and the S&P 500. The declines in the biotech index extended last weeks drop to 13%, its biggest weekly decline in seven years. US Democratic presidential candidate Hillary Clinton said she would announce a plan to stop price gouging for speciality drugs, sparking a drop in shares.

 

Asian stocks were mixed after the biggest drop in China’s industrial profits since at least 2011 underscored the slowdown in the world’s second largest economy. The Nikkei 225 (-1.32%) retreated, while the Hang Seng (+0.43%) and the S&P/ASX 200 (+1.42%) both increased. M2 Group Ltd surged +13% after Vocus Communications Ltd agreed to buy M2 in a $1.35 billion deal. Japan’s steel companies underperformed, pulling the Topix iron and steel subindex down -3%. JFE Holdings lost -4.3%, while Nippon Steel and Sumitomo Metal lost -3.3%. Nippon Paper Industries tumbled -4.3% after the Nikkei business daily reported that its April to September operating profit has likely dropped about 30% on the year to around 9 billion yen.