Morning Spread

Morning Spread

Wednesday 2nd March 2016
IndexLevelChg (%)
UK Market6173.24+0.33
Dow Indust Avg16865.08+2.11
S&P 5001978.35+2.39
Nasdaq Composite4689.60+2.89
Nikkei 22516746.55+4.11
Hang Seng20003.49+3.07
IndexLevelChg (%)
Nymex 1m33.84-1.63
Gold Spot1229.78-0.19
GBP/USD1.3926+0.21
GBP/EUR1.2822-0.23
EUR/USD1.0860+0.02
USD/JPY114.42-0.36
European stocks rose as investors viewed the early year selloff was overdone and central banks have the will and firepower to support the global recovery. The ESTX 50 (+0.97%), UK markets (+0.35%), CAC 40 (+0.77%) and the Dax (+0.83%) all posted gains in early trading. MorphoSys AG climbed +8% after reporting better than estimated 2015 earnings. Virgin Money Holdings (UK) Plc jumped +8.8% after posting a fourfold increase in pre-tax profit for last year. Corbion NV gained +3.8% after reporting higher than expected revenue and saying it will buy back €50 million of shares in 2016 and pay additional dividends totalling €25 million. Luxottica Group SpA dropped -5.3% after lowering its outlook.

 

US stocks rallied, led by financial and technology stocks after encouraging US factory and construction data suggested the US economy is gaining momentum. The Dow Jones Industrial Average (+2.11%), S&P 500 (+2.39%) and the Nasdaq Composite (+2.89%) all increased. Morgan Stanley and Citigroup both rose over +5%. The financial sector is the worst performer in the S&P this year, down about -9%, due partly to fears of debt defaults by energy companies. Apple gained +3.97% giving the biggest boost to the S&P and Nasdaq. Fiat Chrysler rose +7.15% and Ford added +4.64% after strong US auto sales in February defied fears of a slowdown after a record 2015. Tesla Motors dropped -2.91% after influential short seller Citron Research predicted the company would fall to $100 by year end due to supply and demand problems.

 

Asian shares advanced as overnight gains in oil prices and a batch of positive economic data from Australia to the United States calmed fears of a global economic slowdown. The S&P/ASX 200 (+2.01%), Nikkei 225 (+4.11%) and the Hang Seng (+3.07%) all gained. Hong Kong Exchanges & Clearing Ltd climbed +3.5% after saying full year earnings rose to a record on higher trading turnover. China Resources Beer (Holdings) Co soared +18% in Hong Kong after agreeing to buy out the remaining stake in Snow Breweries, its Chinese joint venture with SABMiller Plc, for $1.6 billion. Toyota Motor Corp rose +3.5%.

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