Morning Spread

Morning Spread

Wednesday 2nd November 2016
IndexLevelChg (%)
UK Market6890.91-0.38
Dow Indust Avg18037.10-0.58
S&P 5002111.72-0.68
Nasdaq Composite5153.58-0.69
Nikkei 22517134.68-1.76
Hang Seng22810.50-1.45
IndexLevelChg (%)
Nymex 1m46.05-1.33
Gold Spot1296.48+0.66
GBP/USD1.2262-0.20
GBP/EUR1.1066-0.03
EUR/USD1.1081+0.22
USD/JPY103.62+0.56

European shares fell this morning with sentiment hit by concerns ahead of the US presidential election next week. The ESTX 50 (-0.83%), CAC 40 (-0.66%), Dax (-0.87%) and the UK markets (-0.49%) all posted losses in early trading. Banca Monte dei Paschi di Siena fell -6% in early trade, triggering an automatic trading suspension, after the withdrawal of an alternative rescue plan for Italy’s third largest bank. A.P.Moller-Maersk slumped more than -7% after earnings missed forecasts with a 44% fall in third quarter profit. Danske Bank A/S declined -3.3% after Maersk sold its remaining stake in Denmark’s biggest bank. Hugo Boss AG climbed +5.8% after reporting profit that beat estimates thanks to cost cuts and growth in China. H.Lundbeck A/S advanced +6.4% after raising its annual revenue forecast.

US stocks declined amid growing concern over the impending US presidential election and prospects for higher US interest rates. The Dow Jones Industrial Average (-0.58%), S&P 500 (-0.68%) and Nasdaq Composite (-0.69%) all retreated. The tumultuous presidential race between Democrat Hilary Clinton and Republican Donald Trump has appeared to tighten in the past week after news that the FBI was investigating more emails as part of a probe into Clinton’s use of a private e:mail system. Pfizer fell -2% after trimming its profit forecast. Tronc dropped -12.4% after Gannett abandoned plans to buy the publisher of the Chicago Tribune and the Los Angeles Times. Gannett fell -2.3%. Valeant Pharmaceuticals soared +33.7% after a report that it was in talks to sell its stomach treatment business.

Asian stocks followed global equities lower despite gauges of manufacturing in China topping estimates and the Bank of Japan maintained its record stimulus program. The S&P/ASX 200 (-1.16%), Hang Seng (-1.45%) and the Nikkei 225 (-1.76%) all declined. Shenhua Energy jumped +6.4% after China raised transactions fees for thermal coal futures for a third time in a week after the nation’s benchmark spot price increased to the highest level in more than four years. Deutsche Bank AG analyst James Kan wrote in a note that coal prices may continue rising in the fourth quarter. Sands China jumped +2.8%, Galaxy Entertainment Group Ltd advanced +2.2% and Wynn Macau Ltd gained +1.2% as Macau’s gross gaming revenue rose 8.8% from a year earlier, exceeding analysts’ estimates of a 5.5% increase.