Morning Spread

Morning Spread

Tuesday 31st May 2016
IndexLevelChg (%)
UK Market6265.85-0.08
Dow Indust Avg17873.22+0.25
S&P 5002099.06+0.43
Nasdaq Composite4933.50+0.65
Nikkei 22517234.98+0.98
Hang Seng20815.09+0.90
IndexLevelChg (%)
Nymex 1m49.43+0.20
Gold Spot1211.99+0.53
GBP/USD1.4587+0.32
GBP/EUR1.3113-0.23
EUR/USD1.1124-0.09
USD/JPY111.04+0.09

European stocks were negative this morning as investors awaited US economic reports and this weeks European Central Bank rate’s decision. The ESTX 50 (-0.23%), CAC 40 (-0.31%), Dax (-0.29%) and the UK markets (-0.06%) all posted losses in early trading. Volkswagen AG lost -2.9% after posting quarterly sales that fell short of the average analyst projection and reiterating its forecast for a drop in annual revenue. IG rose +2% after forecasting its full year earnings to come slightly ahead of market expectations ArcelorMittal and Anglo American Plc climbed at least +1%.

US stocks rose on Friday after US Federal Reserve Chair Janet Yellen said an interest rate hike would likely be appropriate in the coming months. The Dow Jones Industrial Average (+0.25%), S&P 500 (+0.43%) and the Nasdaq Composite (+0.65%) all increased. Data on Friday showed US economic growth slowed in the first quarter, although not as sharply as initially thought. After Yellen’s speech, traders raised their expectations of a June rate hike to 34% from 30%, according to CME Group. Palo Alto dropped -12.36% after a wider than expected quarterly loss. GameStop fell -3.93% after forecasting lower than expected revenue and profit for the current quarter. Hewlett Packard Enterprise rose +5% and Yahoo added +2.9%.

Asian stocks rose as the dollar maintained strength against the yen amid expectations for higher US interest rates. The Hang Seng (+0.90%) and the Nikkei 225 (+0.98%) both increased, while the S&P/ASX 200 (-0.54%) declined. Japanese exporters rallied, with Toyota Motor Corp rising +1.8% and Mazda Motor Corp adding +2.7%. Panasonic Corp jumped +3.6% after the Nikkei newspaper reported the company will end production of liquid crystal display panels. Takata Corp climbed +3.4% after ruling out bankruptcy as a way of mitigating its liabilities. Hokuhoku Financial Group Inc jumped +3.8%, while Gumma Bank Ltd added +3.5% after SMBC Nikko Securities Inc raised its rating on several banks.