Morning Spread

Morning Spread

Wednesday 5th October 2016
IndexLevelChg (%)
UK Market7055.84-0.26
Dow Indust Avg18168.45-0.47
S&P 5002150.49-0.50
Nasdaq Composite5289.66-0.21
Nikkei 22516819.24+0.50
Hang Seng23788.31+0.42
IndexLevelChg (%)
Nymex 1m49.41+1.48
Gold Spot1272.68+0.33
GBP/USD1.2731+0.03
GBP/EUR1.1346-0.27
EUR/USD1.1221+0.24
USD/JPY102.82+0.13

European stocks dipped this morning amid concern that the European Central Bank is moving toward tighter monetary policy. The ESTX 50 (-0.60%), CAC 40 (-0.73%), Dax (-0.80%) and the UK markets (-0.23%) all posted losses in early trading. Bloomberg News reported that an informal consensus was building in the ECB to gradually rein in quantitative easing, while Federal Reserve officials talked up the chance of a US interest rate increase this year. Altice NV lost -1.4% after terminating an offer to buy the rest of its SFR Group SA telecom unit after France’s financial markets regulator said it was opposed to the plan. SFR Group fell -6.2%. Tesco Plc jumped +7.3% after reporting first half profit that beat analysts’ estimates. Delta Lloyd NV rallied +29% after NN Group offered to buy the company for €2.4 billion.

US stocks dropped as investors worried about Britain’s exit from the European Union and the prospect of a Federal Reserve interest rate hike in coming months. The Dow Jones Industrial Average (-0.47%), S&P 500 (-0.50%) and the Nasdaq Composite (-0.21%) all declined. Meanwhile the International Monetary Fund lowered its 2016 growth forecast for the US economy to 1.6% from 2.2% and painted a gloomy picture of the global economy. Sears surged +6.42% after Bloomberg reported that the department store chain’s Craftsman tool brand had attracted multiple bidders. Micron Technology was flat despite reporting fiscal fourth quarter revenue about analysts’ expectations.

Most Asian stocks outside Japan slid on concern central banks will reduce stimulus, while the Nikkei climbed after the yen weakened. The S&P/ASX 200 (-0.57%) retreated, while the Hang Seng (+0.42%) and Nikkei 225 (+0.50%) increased. PetroChina Co and Kunlun Energy Co surged more than +3% each as crude futures approached $50 a barrel in New York. Cnooc Ltd climbed +2.8%. China Oilfield Services Ltd rallied +8.2% after Nomura Holdings Inc raised its ratings on the shares to “buy”. Zijin Mining Group Co slid -3.6% amid a slump in the price of gold.