Morning Spread

Morning Spread

Thursday 8th September 2016
IndexLevelChg (%)
UK Market6884.71+0.56
Dow Indust Avg18526.14-0.06
S&P 5002186.16-0.01
Nasdaq Composite5283.93+0.15
Nikkei 22516958.77-0.32
Hang Seng23919.34+0.75
IndexLevelChg (%)
Nymex 1m46.39+1.96
Gold Spot1348.17+0.22
GBP/USD1.3358-0.29
GBP/EUR1.1851-0.06
EUR/USD1.1272+0.35
USD/JPY101.58+0.25

European were steady in early trading as investors focused on a European Central Bank meeting later today. The ESTX 50 (+0.01%), CAC 40 (+0.02%) and the Dax (-0.07%) were all steady, while the UK markets (+0.55%) advanced. The euro zone economy is widely expected to require more stimulus from the ECB, but it probably won’t come from the bank’s policy meeting later today. Growth and inflation remain weak, but the ECB has already exhausted much of its firepower. Micro Focus surged +20% after sealing an $8.8 billion deal with Hewlett Packard Enterprise. Rocket Internet fell -5% after cutting the valuation of its Home24 online furniture business.

US stocks were little changed as investors assessed the outlook for US interest rates. The Dow Jones Industrial Average (-0.06%), S&P 500 (-0.01%) and the Nasdaq Composite (+0.15%) all posted small changes. Investors have been considering the likelihood of a rate hike this month from the Federal Reserve, with recent economic data including last Friday’s weaker than expected jobs report suggesting the US central bank could hold off for now. Apple gained +0.6% after unveiling its new iPhone. Chipotle Mexican Grill gained +5.9% after Pershing Square Capital Management disclosed a 9.9% stake in the chain. Delta Air rose +5.6% after saying sales trends were improving. Sprouts Farmers Market dropped -13.7% following a disappointing forecast.

Asian stocks dropped as raw materials producers and health care companies fell. Japanese shares declined as investors assessed the chances of government stimulus after revised data showed the economy grew more than estimated. The S&P/ASX 200 (-0.71%) and the Nikkei 225 (-0.32%) both retreated, while the Hang Seng (+0.75%) advanced. Nintendo Co surged +18% in Tokyo after saying it will release Super Mario Run in Apple Inc’s App Store in December, the first time the popular franchise is appearing on a smartphone. Apple suppliers Alps Electric Co and Murata Manufacturing Co sank -2.8% and -1.2% respectively, as investors weighed the impact on their earnings from Apple Inc’s latest iPhone lines.