Morning Spread

Morning Spread

Monday 8th August 2016
IndexLevelChg (%)
UK Market6813.70+0.30
Dow Indust Avg18543.53+1.04
S&P 5002182.87+0.86
Nasdaq Composite5221.12+1.06
Nikkei 22516650.57+2.44
Hang Seng22494.76+1.57
IndexLevelChg (%)
Nymex 1m42.36+1.34
Gold Spot1331.28-0.32
GBP/USD1.3051+0.17
GBP/EUR1.1774-0.14
EUR/USD1.1084-0.02
USD/JPY102.29-0.46

European stocks rose this morning, helped by gains in the shares of major banks. The ESTX 50 (+0.78%), CAC 40 (+0.69%), Dax (+1.02%) and the UK markets (+0.32%) all posted gains in early trading. Barclays rose +2.8% after Exane BNP Paribas upgraded Barclays to “outperform” from “neutral”. PostNL shares rose +8.8% after its second quarter results were well received by investors, with the company confirming its full year outlook. Airbus shares fell -1.7% after the Serious Fraud Office launched a formal investigation into suspected fraud, bribery and corruption in connection with commercial plane sales by Airbus.

US stocks rose following a second straight month of robust labour market data boosted optimism that economic growth is accelerating. The Dow Jones Industrial Average (+1.04%), S&P 500 (+0.86%) and the Nasdaq Composite (+1.06%) all increased. The US Labour Department showed that nonfarm payrolls rose by 255,000 in July, far outpacing expectations for a gain of 180,000. While the unemployment rate remained unchanged at 4.9%, it held below the 5% mark associated with full employment. JPMorgan Chase shares gained +2.7% and closed at its highest level of the year. Bristol-Myers plunged -16% after its lung cancer treatment failed in a late stage study, while Merck which makes a rival treatment, rose +10.4%.

Asian stocks rose as investors hunt for yield gathered momentum against a backdrop of a recovering US economy and ultra-easy global monetary policy conditions. The S&P/ASX 200 (+0.74%), Hang Seng (+1.57%) and Nikkei 225 (+2.44%) all advanced. Yanzhou Coal Mining Co jumped by the day’s 10% limit Shanghai as a gauge if energy stocks jumped the most in nearly a month in mainland China trading. Vanke advanced +1.5% in Hong Kong, heading for its highest close in 3 months.