Morning Spread

Morning Spread

Wednesday 7th September 2016
IndexLevelChg (%)
UK Market6840.30-0.01
Dow Indust Avg18538.12+0.25
S&P 5002186.48+0.30
Nasdaq Composite5275.91+0.50
Nikkei 22517012.44-0.41
Hang Seng23741.81-0.19
IndexLevelChg (%)
Nymex 1m45.31+1.07
Gold Spot1348.96-0.08
GBP/USD1.3389+0.25
GBP/EUR1.1911-0.25
EUR/USD1.12400.00
USD/JPY101.64+0.51

European stocks were steady this morning ahead of Thursday’s European Central Bank policy meeting. The ESTX 50 (-0.05%), CAC 40 (-0.06%), Dax (-0.03%) and the UK markets (-0.01%) were all flat in early trading. Economists expect President Mario Draghi will leave rates unchanged, though many predict that downside risks will force him to extend his bond buying program before the end of the year. CMC Markets Plc tumbled -12% after forecasting a decline in net operating income. Ashtead Group Plc rose +4.5% as the company said full year results will probably be ahead of expectations. Hargreaves Lansdown Plc fell -1.6% after announcing that its CEO will step down by the end of September 2017.  

US stocks rose as economic data bolstered views the Federal Reserve may decide against raising interest rates in the near term. The Dow Jones Industrial Average (+0.25%), S&P 500 (+0.30%) and the Nasdaq Composite (+0.50%) all increased. Navistar gained +40.7% after Volkswagen agreed to supply engines to the company in exchange for a 16.6% stake. Cepheid jumped +52.6% after agreeing to be bought by Danaher for $4 billion, including debt. Danaher’s shares were down -2.1%. Spectra Energy jumped +13.4% after being acquired by Enbridge for about $28 billion.

Asian stocks were mixed after weak data on the US services industries bolstered speculation that the Federal Reserve will keep interest rates lower for longer. Japanese shares fell as the yen strengthened. S&P/ASX 200 (+0.20%) gained, while the Hang Seng (-0.19%) and the Nikkei 225 (-0.41%) both retreated. Gome Electrical Appliances Holding Ltd climbed +7.1% in Hong Kong after Macquarie Group Ltd raised the stock’s rating to “outperform”. Rakuten Inc jumped +7.2% in Tokyo after the overseers of the Nikkei 225 Stock Average said the company will be included in the index next month. Nippon Soda Co, which will be removed from the Nikkei 225, plunged -11%.