Morning Spread

Morning Spread

Wednesday 31st August 2016
IndexLevelChg (%)
UK Market6823.20+0.04
Dow Indust Avg18454.30-0.26
S&P 5002176.12-0.20
Nasdaq Composite5222.99-0.18
Nikkei 22516887.40+0.97
Hang Seng22976.88-0.17
IndexLevelChg (%)
Nymex 1m46.05-0.65
Gold Spot1314.46+0.26
GBP/USD1.3142-0.44
GBP/EUR1.1789+0.46
EUR/USD1.1148-0.02
USD/JPY103.19-0.16

European stocks advanced as banks continued their rebound. The ESTX 50 (+0.41%), CAC 40 (+0.51%) and the UK markets (+0.02%) all posted gains in early trading, while the Dax (-0.08%) was down. European banks are heading for their best monthly performance since February 2015, supported by earnings that beat analysts’ estimates for the first time in a year. Commerzbank AG led banks to the best performance among industry groups, rising +4% after Manager Magazin reported that rival Deutsche Bank AG considered the possibility of a merger. Bouygues SA added +3.8% after saying average revenue per mobile user stabilised and it reiterated a 2016 target to improve profitability. Iliad SA gained +4% after reporting an increase in first half sales and earnings.

US stocks declined as Apple weighed on the major indexes, but gains in bank shares partly offset the decline. The Dow Jones Industrial Average (-0.26%), S&P 500 (-0.20%) and the Nasdaq Composite (-0.18%) all retreated. Apple dropped -0.77% after the European Commission ordered the company to pay Ireland €13 billion in unpaid taxes, as it ruled the firm had received illegal state aid. Hershey dropped -11.2% after Mondelez abandoned its pursuit to buy the company. Mondelez rose +3.7%. Abercrombie & Fitch plunged -20.3% after posting its 14th straight quarter of declining sales and said it no longer expects comparable sales to improve this year.

Asian stocks were mixed, with Japanese shares wiping out a monthly decline, as car manufacturers rallied on a weaker yen amid expectations for an increase in US interest rates this year. The Hang Seng (-0.17%) and the S&P/ASX 200 (-0.83%) both retreated, while the Nikkei 225 (+0.97%) rallied. Toyota Motor Corp rose +0.84%, Nissan Motor Co added +1.4% and Canon Inc gained +1.7% as they benefited from the weaker yen. Bank of China gained +1.2% after it reported a 2.5% rise in first half net profit, lifted by strong growth in fee income. Hyundai Merchant Marine Co surged +21% after the government prodded the company to acquire the healthy assets of Hanjin Shipping Co, which is teetering on the verge of bankruptcy following a decision by its creditors to cut financial support.