Morning Spread

Morning Spread

Tuesday 2nd August 2016
IndexLevelChg (%)
UK Market6637.49-0.84
Dow Indust Avg18404.51-0.15
S&P 5002170.84-0.13
Nasdaq Composite5184.20+0.43
Nikkei 22516391.45-1.47
Hang Seng22129.14+1.09
IndexLevelChg (%)
Nymex 1m39.95-0.27
Gold Spot1359.18+0.45
GBP/USD1.3218-0.10
GBP/EUR1.1804-0.14
EUR/USD1.1198+0.24
USD/JPY101.68+0.56

European stocks retreated this morning as investors assessed earnings and weak crude prices weighed on oil companies. The ESTX 50 (-1.39%), CAC 40 (-1.48%), Dax (-1.00%) and the UK markets (-0.79%) all posted losses in early trading. Commerzbank AG dropped -4.4% after scrapping its profit target for this year, forecasting a drop in earnings. Metro AG dropped -5.2% after reporting third quarter sales and profit that missed estimates because of swings in currencies. Direct Line Insurance Group Plc rose +5.9% after increasing its dividend and announced a special payout. Fresnillo Plc gained +1.5% after raising its gold output forecast following a surge in profit.

US stocks declined as a drop in oil prices dragged down energy stocks. The Dow Jones Industrial Average (-0.15%) and the S&P 500 (-0.13%) both retreated, while the Nasdaq Composite (+0.43%) advanced. The S&P 500 had hit a record high earlier in the session, but was unable to hold gains as US crude slumped to below $40 a barrel, before settling at $40.06. Exxon and Chevron were down -3.1% and -3.3%, respectively, and the biggest drags on both the Dow and the S&P 500. Apple Inc rose +1.8%, providing the biggest boost to the three main indexes. Apple has gained more than +9% since reporting results last week. Google parent Alphabet Inc was up +1.2%.

Asian stocks fell as Japanese shares slid ahead of the announcement of a 4.6 trillion yen stimulus package and a slump in oil weighed on energy and commodity companies. The S&P/ASX 200 (-0.84%) and the Nikkei 225 (-1.47%) both dropped, while the Hang Seng (+1.09%) gained. Mitsubishi UFJ Financial Group Inc dropped -5.9% after reporting a 32% decline in net income in the first quarter from a year earlier, as negative interest rates lowered lending income and the company slowed sales of its shareholdings. ANA Holdings Inc retreated -4% after the Nikkei newspaper reported the airline’s operating profit last quarter is likely to be around 20% less than last year amid fiercer competition from budget operators on Japan-China routes. Nippon Soda Co surged +6.4% after saying it will spend about 2 billion yen buying back shares.