Morning Spread

Morning Spread

Wednesday 8th April 2015
IndexLevelChg (%)
UK Market6998.03+0.52
Dow Indust Avg17875.42-0.03
S&P 5002076.33-0.21
Nasdaq Composite4910.23-0.14
Nikkei 22519789.81+0.76
Hang Seng26236.86+3.80
IndexLevelChg (%)
Nymex 1m52.77-2.24
Gold Spot1210.49+0.11
GBP/USD1.4890-0.25
GBP/EUR1.3716+0.19
EUR/USD1.0856+0.05
USD/JPY119.97+0.26

European shares rose in early trading, led by a rally in energy shares after Royal Dutch Shell agreed to buy BG Group for £47 billion in the first oil super-merger in a decade. The CAC 40 (+0.10%) and UK markets (+0.45%) both posted gains, while the Dax (-0.28%) declined and the ESTX 50 (-0.02%) was flat. Shares in BG jumped +39%, while Tullow Oil soared +9.8%, BP gained +4.4%, Repsol added +2.4% and Total climbed +0.9%. Shell fell -1.8%. BG rallied the most in six years yesterday before takeover talks were reported, and bullish options increased. Sky Plc advanced after Reuters said Vivendi SA is looking acquire the company. Sky denied the report. Experian Plc added +2.5% after Credit Suisse Group AG boosted its rating on the credit reporting firm to the equivalent of a buy.

 

US stocks ended Tuesday slightly lower, reversing course late in the session as strength in the dollar offset optimism about deal news. The Dow Jones Industrial Average (-0.03%), S&P 500 (-0.21%) and the Nasdaq Composite (-0.14%) all retreated. FedEx rose +2.7% as it seeks to buy Dutch company TNT Express for $4.8 billion. General Motors fell -2.5% and the stock was among the day’s most active after Canada agreed to sell nearly 73.4 million shares of the company to Goldman Sachs. Viacom fell -1.9% after it halted its $20 billion repurchase program as it embarks on a restructuring that includes cutting jobs and reorganising three of its domestic network groups. Twitter jumped +4% following a Barron’s report that the company has hired advisors to fend off a takeover bid.

 

Asian stocks rose as investors awaited a Bank of Japan policy decision and the release of Federal Reserve meeting minutes. The Nikkei 225 (+0.76%), Hang Seng (+3.38%) and the S&P/ASX 200 (+0.59%) all rallied. Takashimaya rose +4% even though its earnings were mostly in line with analyst expectations. Takashimaya has risen over 30% so far this year. Rival Isetan Mitsukoshi rose +3.1%, extending its year to date gains to 44.8%. In China, investors sold small-cap stocks and shifted money into blue chips. Bank of China was up +1.6%, Agricultural Bank of China gained +1.1% and Everbright Bank jumped +4.2%. Haitong Securities Co, China Communications Co and China Oilfield Services Ltd surged at least +15% in Hong Kong. Gome Electrical Appliances Holding Ltd jumped +23% after Citigroup recommended the shares.