Morning Spread

Morning Spread

Wednesday 7th October 2015
IndexLevelChg (%)
UK Market6375.44+0.78
Dow Indust Avg16790.19+0.08
S&P 5001979.92-0.36
Nasdaq Composite4748.36-0.69
Nikkei 22518322.98+0.75
Hang Seng22514.04+3.13
IndexLevelChg (%)
Nymex 1m49.31+1.61
Gold Spot1149.30+0.18
GBP/USD1.5279-0.35
GBP/EUR1.3600+0.60
EUR/USD1.1234-0.26
USD/JPY120.00+0.22

European shares rose for a fourth straight session as miners tracked a rally in prices of key industrial metals. The ESTX 50 (+0.97%), UK markets (+0.68%), CAC 40 (+0.74%) and the Dax (+0.87%) all posted gains in early trading. SABMIller rose +2.8% after AB InBev increased its bid for its largest rival to £42.15 per share in cash, valuing SABMiller at nearly £68 billion. Anglo American Plc, Rio Tinto Group and BHP Billiton Ltd all rose at least +3.2% after prices of copper, aluminium and nickel rose and Morgan Stanley upgraded the shares. Seadrill Ltd and Subsea 7 SA rallied +4.4%, leading gains in energy stocks. Tesco Plc declined -3.6% after its first half operating income more than halved from a year earlier. Rexel SA dropped -2.9% after cutting its profitability target.

 

US stocks fell as investors focused on upcoming quarterly reports that are expected to reflect a dip in corporate earnings. The S&P 500 (-0.36%) and the Nasdaq Composite (-0.69%) both declined, while the Dow Jones Industrial Average (+0.08%) increased. The IMF cut its global growth forecasts for the second time this year, citing weak commodity prices and a slowdown in China. Underscoring concerns about the world economy, S&P 500 companies are expected to report a 4.2% fall in earnings in upcoming third quarter reports, the biggest decline in six years, according to Thomson Reuters data. DuPont rose +7.67% after CEO Ellen Kullman said she would step down. Pepsi rose +1.31% after it reported better than expected quarterly results and raised its forecast for the year. After the bell, Yum! Brands dropped -16% after reporting third quarter results that disappointed investors. Pfizer and Merck were down -2.06% and 2.79% respectively.

 

Asian stocks climbed, building on their biggest five day advance in almost four years, as several companies reported earnings and investors awaited a Bank of Japan decision on monetary policy. The Nikkei 225 (+0.75%), Hang Seng (+2.72%) and the S&P/ASX 200 (+0.59%) all increased. Cnooc surged +11%, while Kunlun Energy Co and PetroChina jumped +6.3% after oil futures rose as much as 2.4% in New York as US industry data showed crude stockpiles fell and the Energy Information Administration increased its forecast for 2015 global oil demand. Inpex Corp surged +7.2%. Ryohin Keikaku Co lost -6.9% after analysts said the company’s earnings report was slightly negative. Yamada Denki Co jumped +6.6% after Mitsubishi UFJ Morgan Stanley raised its rating on the company.