Morning Spread

Morning Spread

Thursday 4th August 2016
IndexLevelChg (%)
UK Market6636.44+0.03
Dow Indust Avg18355.00+0.23
S&P 5002163.79+0.31
Nasdaq Composite5159.74+0.43
Nikkei 22516254.89+1.07
Hang Seng21832.23+0.43
IndexLevelChg (%)
Nymex 1m40.95+0.29
Gold Spot1351.08-0.52
GBP/USD1.3292+0.27
GBP/EUR1.1935+0.06
EUR/USD1.1138-0.32
USD/JPY101.45-0.11

European equities gained this morning as banks and energy producers lead the advances and as investors awaited a Bank of England policy update at which officials are forecast to announce a rate cut.  The ESTX 50 (+0.83%), CAC 40 (+0.46%), Dax (+0.88%) and the UK markets (+0.02%) all posted gains in early trading. Siemens AG rose +3.2% after raising its profit outlook for the second time this year. Rheinmetall AG climbed +3.6% after reporting earnings that topped projections. Societe BIC SA jumped +8% after saying sales rose in the second quarter. Aviva Plc advanced +4% after reporting a gain in profit and increased its dividend. Hikma Pharmaceuticals Plc tumbled -14% after saying it sees lower earnings from generic treatments. Nokia Oyj dropped -4.7% after posting revenue that missed estimates.

US stocks advanced after a sharp rise in oil prices boosted energy shares, while better than anticipated data on the labour market helped financial stocks. The Dow Jones Industrial Average (+0.23%), S&P 500 (+0.31%) and the Nasdaq Composite (+0.43%) all increased. US oil prices jumped more than 3% to settle at $40.83 a barrel after a larger than expected petrol usage offset a surprise build in US crude stockpiles. American International Group jumped +7.3% after the largest commercial insurer in the United States and Canada reported an operating profit that beat analysts’ estimates. Biogen dropped -2.7% after Reuters reported that the company has not received any formal expressions of interest from potential acquirers a day after a buyout report sent the stock up more than 9%.

Asian stocks rebounded after suffering their steepest decline in five weeks as Japanese shares advanced and material companies led gains in the region. The S&P/ASX 200 (+0.18%), Hang Seng (+0.43%) and the Nikkei 225 (+1.07%) all advanced. HSBC gained +2.4% after saying it plans more share repurchases while keeping its dividend at the current level for the foreseeable future. Cnooc rose +3.7% after resolving a dispute with Husky by agreeing to lower prices paid for natural gas from the Liwan offshore project that the two companies share in the South China Sea. Idemitsu Kosan Co Ltd and Showa Shell Sekiyu KK fell -7.7% and -6.9% respectively after Idemitsu’s founding family reportedly bought a stake in Showa Shell to block Idemitsu management’s takeover plan.