Morning Spread

Morning Spread

Wednesday 30th September 2015
IndexLevelChg (%)
UK Market6026.31+1.98
Dow Indust Avg16049.13+0.30
S&P 5001884.09+0.12
Nasdaq Composite4517.32-0.59
Nikkei 22517388.15+2.70
Hang Seng20846.30+1.41
IndexLevelChg (%)
Nymex 1m45.11-0.27
Gold Spot1125.23-0.20
GBP/USD1.5168-0.05
GBP/EUR1.3521+0.43
EUR/USD1.1219-0.37
USD/JPY120.22-0.44

European stocks advanced this morning as investors paused to assess value as European indexes head for their worst quarter in four years. The ESTX 50 (+1.90%), UK markets (+1.86%), CAC 40 (+1.93%) and the Dax (+1.85%) all posted gains in early trading. Glencore helped lead miners higher with an advance of +7.4% as metal prices rallied. Rio Tinto Group rose +2.2% after agreeing to sell its 40% in the Bengalla coal venture in Australia to New Hope Corp for $606 million. J Sainsbury Plc soared +12% after saying full year adjusted profit may beat consensus estimates. Tesco Plc and Wm Morrison Supermarkets Plc each rose at least +4.6%. PSA Peugeot Citroen rose +5.6%.

 

US stocks advanced as concerns about health of the global economy kept investors cautious after more than a month turbulence. The Dow Jones Industrial Average (+0.30%) and the S&P 500 (+0.12%) both increased, while the Nasdaq Composite (-0.59%) decreased. A report showed the consumer confidence index rose to 103 in September, beating economists’ expectation of 96.1. With third quarter earnings season looming, Goldman Sachs said it expects sales growth for S&P 500 companies to shrink this year for the first time in five years. After the bell, Diamond Foods posted fiscal fourth quarter sales that missed Wall Street’s expectations and its stock lost -4%. Yahoo rose +2.9% following a decision to proceed with spinning off Alibaba stake. Republic Airways surged +12.85% after Deutsche Bank raised the stock to “buy” and the airline reached agreement on new contract with its pilots.

 

Asian stocks followed US equities higher, but concerns linger over slumping commodity prices and China’s cooling economy. The Nikkei 225 (+2.70%), Hang Seng (+1.41%) and the S&P/ASX 200 (+2.10%) all increased. The market’s sluggish performance in recent weeks has kept alive hopes that policymakers may bring about fresh stimulus to promote growth, offering some support for Japanese stocks. Banking, insurance and other financial sectors outperformed in Japan. Dai-Ichi Life Insurance climbed +4%. Sentiment was aided by a surge in Chinese auto stocks, after Beijing announced it would halve sales tax on small engine cars. Great Wall Motor soared +35% in Hong Kong and 7.4% in Shanghai. BYD, BAIC Motor and SAIC Motor also rose sharply. Japan Tobacco Inc tumbled -6.7% after it agreed to pay Reynolds American Inc 600 billion yen for brand rights to its Natural American Spirit tobacco business outside of the US.