Morning Spread

Morning Spread

Thursday 30th July 2015
IndexLevelChg (%)
UK Market6643.73+0.19
Dow Indust Avg17751.39+0.69
S&P 5002108.57+0.73
Nasdaq Composite5111.73+0.44
Nikkei 22520522.83+1.08
Hang Seng24497.98-0.49
IndexLevelChg (%)
Nymex 1m48.84+0.10
Gold Spot1086.32-0.96
GBP/USD1.5613+0.05
GBP/EUR1.4233+0.54
EUR/USD1.0970-0.59
USD/JPY124.17-0.29

European stocks climbed amid corporate earnings and increased deal activity. The ESTX 50 (+0.33%), UK markets (+0.22%), CAC 40 (+0.42%) and the Dax (+0.47%) all posted gains in early trading. Royal Bank of Scotland Group Plc added +3.6% after unexpectedly posting a profit. Deutsche Bank AG gained +3% after quarterly net income more than tripled. Nokia Oyj jumped +8.4% after network equipment profitability improved. Royal Dutch Shell Plc advanced +3% after saying it will cut jobs and investments, and agreeing to sell a stake in a Japanese refiner. AstraZeneca Plc climbed +1.8% after reporting quarterly earnings and sales that beat analysts’ predictions. Telefonica SA gained +1.1% after its second quarter sales topped projections.

 

US stocks rose after the Federal Reserve said the economy and job market continued to strengthen and left its key interest rate unchanged. The Dow Jones Industrial Average (+0.69%), S&P 500 (+0.73%) and the Nasdaq Composite (+0.44%) all increased. The central bank’s comments on the economy and inflation appeared to do little to drastically change expectations that the first hike will come in September or possibly December. After the bell, Facebook and Whole Foods market dropped -4% and -11% respectively, following quarterly reports that left investors wanting more. Twitter fell -14.5% after saying its number of monthly average users rose at the slowest pace since it went public in 2013. General Dynamics rose +3.93% after reporting earnings.

 

Asian shares gained after the US Federal Reserve painted a relatively bright picture of the economy. The Nikkei 225 (+1.08%) and the S&P/ASX 200 (+0.81%) both advanced, while the Hang Seng (-0.18%) declined. Nomura Holdings Inc rose +3% in Tokyo after first quarter profit more than tripled as brokerage commissions and investment banking fees outweighed a drop in trading income. Daiwa Securities Group Inc advanced +3.3% after also posting a larger than anticipated earnings increase. A weaker yen and sales of a new video game boosted profit at Nintendo, sending shares +8.3% higher. Hitachi soared +6.5% after first quarter net income grew by almost a third. China Shenhua Energy Co fell -1.3% after reporting a 46% drop in first half net income to 11.7 billion yuan.