Morning Spread

Morning Spread

Monday 7th September 2015
IndexLevelChg (%)
UK Market6089.67+0.77
Dow Indust Avg16102.38-1.66
S&P 5001921.22-1.53
Nasdaq Composite4683.92-1.05
Nikkei 22517860.47+0.38
Hang Seng20583.52-1.23
IndexLevelChg (%)
Nymex 1m45.60-0.98
Gold Spot1122.65-0.07
GBP/USD1.5256-0.56
GBP/EUR1.3670+0.45
EUR/USD1.1160+0.09
USD/JPY119.29-0.25

European shares rebounded this morning, with Glencore leading the market higher after announcing plans to cut its debt. The ESTX 50 (+1.04%), UK markets (+0.88%), CAC 40 (+1.02%) and the Dax (+0.97%) all posted gains in early trading. Data showing German industrial production increased in July also added to investor optimism. Glencore surged +13% after saying it will suspend dividends, sell assets and raise $2.5 billion in a new share issue to cut its debt by a third a third to $20 billion by the end of next year. It has been under pressure to cut debt as prices for its key products, copper and coal, have sunk to more than six year lows. Enel SpA advanced +1.4% after saying it will meet its 2015 financial targets. UniCredit SpA rose +1.6% after CEO Federico Ghizzoni told la Repubblica that the bank doesn’t need to raise capital.

 

US stocks dropped on Friday after a mixed August jobs report did little to quell investor uncertainty about whether the Federal Reserve will increase interest rates this month. The Dow Jones Industrial Average (-1.66%), S&P 500 (-1.53%) and the Nasdaq Composite (-1.05%) all retreated. Nonfarm payrolls increased 173,000 last month, fewer than 200,000 that economists polled by Reuters had expected. But the unemployment rate dropped to 5.1%, its lowest in more than seven years, and wages accelerated. The CBOE Volatility index, known as Wall Street’s “fear gauge”, rose 7% to 27.41, well above its long term average of 20. Caterpillar’s shares lost 1.81% after Baird downgraded the stock to “neutral”. Netflix fell -2.24% in its sixth straight day of losses. Microsoft was the biggest drag on the S&P  and Nasdaq with a 2.05% fall.

 

Asian stocks fell as a stronger yen weighed on shares in Tokyo and investors awaited the resumption of trading in China following a holiday. The Nikkei 225 (+0.38%) gained, while the Hang Seng (-0.91%) and the (-0.20%) both decreased. China worked to ease concern over its economy at the G20 gathering in Turkey at the weekend, with officials predicting stabilisation in the its currency and stocks markets in the coming weeks. Toshiba Corp gained +1.8% after reporting earnings following a delay after facing an accounting scandal. Haseko gained +1.6% and DeNA surged +8.7% after it was announced that both companies will be added to the Nikkei 225 at the end of the month, replacing Nitto Boseki Co and Heiwa Real Estate Co. Nitto Boseki plunged -19% and Heiwa slumped -14%. Japan Tobacco lost -1.8% and SoftBank declined -1.6%.