Morning Spread

Morning Spread

Thursday 4th June 2015
IndexLevelChg (%)
UK Market6896.87-0.77
Dow Indust Avg18076.27+0.36
S&P 5002114.07+0.21
Nasdaq Composite5099.23+0.45
Nikkei 22520488.19+0.07
Hang Seng27547.33-0.40
IndexLevelChg (%)
Nymex 1m59.48-0.27
Gold Spot1181.87-0.27
GBP/USD1.5328+0.01
GBP/EUR1.3619-0.01
EUR/USD1.1254+0.01
USD/JPY124.35+0.03

European stocks dropped as another round of talks failed to end a stalemate in Greek debt talks. The ESTX 50 (-1.70%), UK markets (-1.29%), CAC 40 (-2.10%) and the Dax (-1.80%) all posted losses in early trading. Saipem SpA slid -5.7% after Il Sole 24 Ore reported that Eni SpA may evaluate a capital increase of as much as €2.5 billion for the drilling services company. Deutsche Telekom AG gained +1.4% after the Wall Street Journal reported that T-Mobile US Inc, which is owned by the German company, is in talks to merge with Dish Network Corp. Syngenta AG climbed +2.1% after Reuters reported that BASF SE is considering an offer to buy the company. EasyJet Plc added +1.1% after saying passengers increased in the 12 months through May.

 

US stocks rose on hopes of an imminent Greek debt agreement and after data pointed to renewed life in the US economy. The Dow Jones Industrial Average (+0.36%), S&P 500 (+0.21%) and the Nasdaq Composite (+0.45%) all increased. Ten year bond yields have risen about 28 basis points in three days, their biggest rise in a comparable period in nearly two years. While that boosted financials, it weighed on utilities. C.H. Robinson jumped +5.5% and was the biggest daily percentage gainer in the S&P 500. Wendy’s rose +3.3% after saying it would buy back $1.4 billion of shares, including some from Nelson Peltz’s Trian Group, its largest shareholder.

 

Asian stocks were mixed despite a rebound in US shares as investors speculated Greece will reach a deal with its creditors which saw the euro gain against the yen. The Nikkei 225 (+0.07%) gained, while the Hang Seng (-0.40%) and the S&P/ASX 200 (-1.42%) both decreased. Nippon Sheet Glass Co, which relies on Europe for nearly 40% of sales, jumped +2.9%. Rakuten Inc tumbled -5.2% after saying it will issue 188 billion yen of shares in a public sale. Screen Holdings Co dropped -2.9% after Mitsubishi UFJ Morgan Stanley cut its rating on the semiconductor manufacturer. Bank of Communications Co jumped by the 10% daily limit. Bank of China Ltd and China Shenhua Energy Co climbed more than 4%.