Morning Spread

Morning Spread

Thursday 3rd September 2015
IndexLevelChg (%)
UK Market6196.22+1.84
Dow Indust Avg16351.38+1.82
S&P 5001948.86+1.83
Nasdaq Composite4749.98+2.46
Nikkei 22518182.39+0.48
Hang Seng20934.940.00
IndexLevelChg (%)
Nymex 1m45.10-0.63
Gold Spot1132.85-0.11
GBP/USD1.526+0.35
GBP/EUR1.3578-0.37
EUR/USD1.1235+0.01
USD/JPY120.31-0.14

European stocks rose as investors look for guidance from a European Central Bank meeting after a volatile month. The ESTX 50 (+1.50%), UK markets (+1.68%), CAC 40 (+1.60%) and the Dax (+1.91%) all advanced. With markets in China closed for a holiday, investors will focus on the ECB, paying attention to any language indicating that a QE program could be expanded. The market rout and weaker commodity prices mean that the central bank’s quarterly inflation forecast could be downgraded. EasyJet Plc rallied +5.6% after raising its forecast for full year pre-tax profit. Ryanair Holdings Plc and IAG SA both gained +2.2%. Syngenta AG advanced +2% after saying it plans to buy back $2 billion of shares and sell its vegetable seeds business. Polyus Gold International Ltd climbed +4.6% after it was reported that it may be the target of a buyout offer.

 

US stocks advanced as investors weighed the impact of a stumbling Chinese economy and global market turmoil on Federal Reserve’s impending decisions about when to raise interest rates. The Dow Jones Industrial Average (+1.82%), S&P 500 (+1.83%) and the Nasdaq Composite (+2.46%) all rallied. US investors have weathered over two weeks of unusually wide swinging trade that has left the S&P 500 with its worst monthly drop in three years and a loss of 8.5% from an all-time high in May. Technology shares helped lead indexes higher. Apple was up +4.29% and Microsoft gained +3.68%. Shares of banks and bond insurers rose after Puerto Rico’s indebted public utility PREPA reached a deal with a key bondholder group. OFG Bancorp surged +19.59% and First Bancorp rose +9.81%.

 

Asian stocks were mixed, following a rebound in US shares. Markets in China and Hong Kong were closed for a holiday. The Nikkei 225 rose (+0.48%), while the S&P/ASX 200 declined. MS&AD Insurance Group Holdings Inc gained +4.9% in Tokyo as Goldman Sachs Group Inc advised buying the shares. NTT Docomo Inc climbed +4.4% after Barclays Plc lifted its rating on the Japanese phone company. Commonwealth Bank of Australia fell -2.3% as the nation’s banks dragged the S&P/ASX 200 down 1.4%. Toshiba Corp gained +2.1%. Nippon Express rose +1.3% after Barclays boosted its investment rating on the stock to “overweight” from “equal weight”. Furukawa Co Ltd fell -3.2%.