Morning Spread

Morning Spread

Tuesday 7th April 2015
IndexLevelChg (%)
UK Market6912.76+1.16
Dow Indust Avg17880.85+0.66
S&P 5002080.62+0.66
Nasdaq Composite4917.32+0.62
Nikkei 22519640.54+1.25
Hang Seng25275.64+0.77
IndexLevelChg (%)
Nymex 1m51.40-1.42
Gold Spot1207.95-0.57
GBP/USD1.4852+0.62
GBP/EUR1.3690+0.71
EUR/USD1.0848-1.33
USD/JPY120.00-0.70

European stocks rallied as the markets reopened after the Easter holidays, amid investor confidence that central banks will continue to support economies. The ESTX 50 (+0.97%), UK markets (+1.15%), CAC 40 (+1.12%) and the Dax (+0.88%) all posted gains in early trading. Commerzbank AG added +1% after gaining federal court approval of a $1.45 billion agreement to defer prosecuting the bank for violating US laws, including sanctions on doing business with Iran and Sudan. TNT Express NV jumped +31% after agreeing to a €4.4 billion takeover offer from FedEx Corp. TNT investors will receive €8 a share in cash, 33% more than the closing price on April 2nd. International Consolidated Airlines Group SA, Air France-KLM and Deutsche Lufthansa AG slid at least -1.9% after JPMorgan Chase & Co downgraded the companies, citing flat margins and competition from Middle East airlines. Glencore Plc and Anglo American Plc rallied more than +3.2%. Seadrill Ltd jumped +8% and Tullow Oil Plc climbed +4.2%.

 

US stocks rose as expectations the Federal Reserve could hold off longer on raising US interest rates offset concerns over Friday’s surprisingly weak monthly jobs report. The Dow Jones Industrial Average (+0.66%), S&P 500 (+0.66%) and the Nasdaq Composite (+0.62%) all advanced. The jobs report came in well below expectations, with data showing US employers last month added the fewest jobs in over a year. Underscoring the economic weakness, an ISM report showed the pace of growth in the US services sector fell in March to its lowest level in three months. Microsoft Corp climbed +3.1% after Wells Fargo & Co raised its rating to “outperform” from “market perform”. Apple Inc added +1.6%. Delphi Automotive Plc rose +3.2% to a record after Morgan Stanley and RW Baird & Co raised their price targets. Transocean Ltd rose +10% and Diamond Offshore Drilling gained +5.6% as West Texas Intermediate crude advanced +6.1%.  

 

Asian stocks rose following the US, while the dollar held on to its gains after rebounding against the euro and yen on higher US treasury yields. The Nikkei 225 (+1.25%), Hang Seng (+0.77%) and the S&P/ASX 200 (+0.46%) all gained. CSR Corp and China CNR Corp both surged +10% after saying their merger got regulatory approval. China Southern Airlines Co jumped by the daily limit as lower fuel prices bolstered its profit outlook. Yanzhou Coal Mining Co rose +4.9% and PetroChina Co advanced +1.9%, helping lead Chinese energy shares higher. Inpex Corp climbed +4.4% after the US benchmark jumped more than +6%. Koei Tecmo Holdings Co increased +3.8% after reporting stronger than expected preliminary earnings. Asics dropped -1.8% after Credit Suisse lowered its rating on the company to “neutral” from “outperform”.