Morning Spread

Morning Spread

Friday 2nd September 2016
IndexLevelChg (%)
UK Market6781.81+0.53
Dow Indust Avg18419.30+0.10
S&P 5002170.860.00
Nasdaq Composite5227.21+0.27
Nikkei 22516925.68-0.01
Hang Seng23266.70+0.45
IndexLevelChg (%)
Nymex 1m43.33+0.39
Gold Spot1310.89-0.23
GBP/USD1.3265+0.08
GBP/EUR1.1865+0.08
EUR/USD1.1180-0.16
USD/JPY103.63-0.33

European stocks advanced this morning as investors speculated on the health of the US economy and the implications for interest rates of today’s nonfarm payroll data. The ESTX 50 (+0.28%), CAC 40 (+0.49%) and the UK markets (+0.54%) all posted gains in early trading, while the Dax (-0.06%) was slightly negative. Rocket Internet SE slid -7.5% after announcing a first half loss. SMB Offshore tumbled -13% after a Brazilian prosecutor failed to ratify a leniency agreement related to a bribery case concerning Petroleo Brasileiro SA. Adidas AG lost -1.3% after Callaway Golf Co’s CEO said it will not bid for the German company’s golf division. McCarthy & Stone Plc plummeted -12% after saying that the UK’s referendum and the Bank of England’s subsequent changes to monetary policy could affect ability to reach its target for annual volume growth.  

US stocks were flat as investors exercised caution ahead of a key payroll report later today. The Dow Jones Industrial Average (+0.10%) and the Nasdaq Composite (+0.27%) were slightly positive, while the S&P 500 (0.00%) was flat. A report from the Institute of Supply Management showed US factory activity contracted for the first time in six months in August as new orders and production tumbled, but data on the labour market pointed to a pickup in third quarter economic growth. Charter Communications gained +4.5% after S&P Dow Jones Indices said the company will replace EMC Corp in the S&P 500. Hewlett Packard Enterprise was up +3.2% and Apple rose +0.6%, which helped counter the losses suffered by energy companies as oil prices declined on worries about a supply glut.

Asian stocks fluctuated in a narrow range as investors avoided taking on risk before key US payrolls data that may provide hints on the path of interest rates in the world’s largest economy. The S&P/ASX 200 (-0.79%) retreated, the Hang Seng (+0.45%) advanced and the Nikkei 225 (-0.01%) was flat. CK Hutchinson climbed +2.9% after the company and VimpelCom Ltd got approval for an Italian merger and helping a smaller rival become the country’s fourth mobile carrier. HSBC gained +0.3%, closing at its highest level since January. Cheung Kong Infrastructure Holdings Ltd and Sun Hung Kai Properties Ltd rose at least +0.8% after Hong Kong homes sales advanced to the highest level in over 14 months.