Morning Spread

Morning Spread

Wednesday 29th June 2016
IndexLevelChg (%)
UK Market6254.04+1.85
Dow Indust Avg17409.72+1.57
S&P 5002036.09+1.78
Nasdaq Composite4691.87+2.12
Nikkei 22515566.83+1.59
Hang Seng20436.12+1.31
IndexLevelChg (%)
Nymex 1m48.40+1.15
Gold Spot1320.75+0.68
GBP/USD1.3387-0.43
GBP/EUR1.2092+0.26
EUR/USD1.1071+0.17
USD/JPY102.47+0.21

European equities rose this morning as investors speculated central banks will deploy stimulus to contain the impact of the UK’s decision to leave the European Union. The ESTX 50 (+1.80%), CAC 40 (+1.64%), Dax (+1.24%) and the UK markets (+1.74%) all posted gains in early trading. EU leaders in Brussels said there could be no turning back for the UK and warned David Cameron that delaying the period before the country formally activates the EU exit mechanism will prevent the start of negotiations over any future relationship. TUI AG declined -3.59% after coordinated terror attacks at Istanbul’s airport. Gains have been led by British pharma stocks such as AstraZeneca and GlaxoSmithKline, both up between 10.5% and 7.5%, in past three sessions.

 

US stocks bounced back yesterday, recouping some recent losses, as investors sought cheap assets after a two day equity rout sparked by the UK’s decision to leave the European Union. The Dow Jones Industrial Average (+1.57%), S&P 500 (+1.78%) and the Nasdaq Composite (+2.12%) all advanced. Investors are bracing for more volatility in the coming weeks amid uncertainty about how the UK will pursue its EU exit, with some pointing to more possible downside. Gilead Sciences gained +5.2% after winning US approval for a hepatitis C medicine. Endo International surged +18.3%, the top performer in the S&P 500, after the company announced a new patent.

 

Asian stocks rose amid optimism that policy makers will introduce measures to limit the economic fallout from the UK leaving the European Union. The S&P/ASX 200 (+0.77%), Hang Seng (+1.31%) and the Nikkei 225 (+1.59%) all increased. Japan’s Prime Minister Shinzo Abe said he will mobilise all possible measures, while South Korea proposed a package of fiscal stimulus. Idemitsu Kosan Co tumbled -6.5% after descendants of the company’s founder said they oppose a merger with Showa Shell Sekiyu KK. Showa Shell slumped -2.8%. Seven & I Holdings Co fell -0.9% as data showed retail sales didn’t increase in May from the previous month. Toyota Motor Corp added +2.9%, while Sony Corp increased +4.8%.