Morning Spread

Morning Spread

Thursday 9th July 2015
IndexLevelChg (%)
UK Market6534.41+0.67
Dow Indust Avg17515.42-1.47
S&P 5002046.68-1.67
Nasdaq Composite4909.76-1.75
Nikkei 22519855.50+0.60
Hang Seng24392.79+3.73
IndexLevelChg (%)
Nymex 1m52.25+1.16
Gold Spot1163.67+0.45
GBP/USD1.5396-0.40
GBP/EUR1.3941+0.45
EUR/USD1.1044-0.05
USD/JPY121.42-0.55

European shares climbed this morning, led by miners after a rally in metals and Chinese stocks, while some investors assumed Greece’s creditors will positively consider reform proposals and finally agree a debt deal. The ESTX 50 (+0.87%), UK markets (+0.70%), Dax (+0.76%) and the CAC 40 (+0.95%) all posted gains in early trading. Associated British Foods rose +3% after posting a small rise in year to date revenue. Barratt Developments Plc climbed +1.4%, rebounding from its biggest drop in almost a year, after saying full year profit will increase about 45%. Zalando SE slipped -1.7% as investors sold shares. Saipem SpA declined -5.7% after losing its $2.2 billion contract to lay a Russian natural gas pipeline under the Black Sea.

 

US stocks dropped after the New York Stock Exchange suffered a major outage and market turmoil in China eclipsed Greece’s debt crisis. The Dow Jones Industrial Average (-1.47%), S&P 500 (-1.67%) and the Nasdaq Composite (-1.75%) all retreated. The NYSE resumed trade late in the session after a technical problem forced a suspension for more than three hours in the biggest outage to strike a US financial market in two years. Unofficially kicking off second quarter earnings season, Alcoa was up +0.5% in extended trade after its second quarter EPS missed analyst estimates and revenue beat estimates. Tesla Motors fell -4.82% after Pacific Crest downgraded the stock to “sector weight” from “overweight”, the second rating cut in two days.

 

Asian stocks rebounded amid a slew of fresh measures from the Chinese to prop up the market, including a ban on listed companies big shareholders from selling their holdings. The Nikkei 225 (+0.60%), Hang Seng (+4.04%) and the S&P/ASX 200 (+0.03%) all increased. During the first two days of this week, investors unwound 286.3 billion yuan of Chinese margin positions, even after 21 Chinese brokerages pledged to set up a 120 billion yuan fund to buy blue chip stocks. Haitong Securities Co, Poly Real Estate Group Co, China Eastern Airlines Corp and Luzhou Laojiao Co all rallied by the 10% limit. Honda Motor Co slipped -1.8% as Japanese exporters retreated after the yen jumped amid China’s rout.