Morning Spread

Morning Spread

Wednesday 18th November 2015
IndexLevelChg (%)
UK Market6246.09-0.36
Dow Indust Avg17489.50+0.04
S&P 5002050.44-0.13
Nasdaq Composite4986.01+0.02
Nikkei 22519649.18+0.09
Hang Seng22188.26-0.34
IndexLevelChg (%)
Nymex 1m41.11+1.08
Gold Spot1071.36+0.10
GBP/USD1.5206-0.06
GBP/EUR1.4248+0.31
EUR/USD1.0673+0.24
USD/JPY123.28+0.09

In the end there was little change in US equities on Tuesday, as the earlier rally faded with the decline in the Energy sector. The group declined by 1.2%, reversing a 3% gain on Monday, as investors expected high levels of stock piles. Exxon Mobil fell just over 1%, Schlumberger lost 2% and Conoco declined 0.85%. Retailers had a good day with Wal-Mart recording a 3.5% rise and Home Depot gained 4.4%. Economic data highlighted that inflation ticked up in October, closer to the Federal Reserve’s target. A takeover of Airgas by Air Liquide saw the shares gain nearly 30%, with the combined company now the largest supplier of industrial gases in the world. Biotechnology was also firmer with Amgen up 2%.

Asia is mixed with many markets seeing mild profit taking. Japan closed little changed, although the insurance sector was weaker. Investors were concerned over recent earnings figures and Tokio Marine fell 2.2% and MS&D Insurance lost 2.3%. Tohoku Electric Power declined over 7% as investors were concerned at the scale of the recent convertible financing issue. Macau related gaming stocks were struggling once again with Wynn Macau losing 3% and Sands China down 3.4% on gloomy economic forecasts for the region. In China, Citic Securities rose 3% after the company announced management changes. Investors have been concerned recently over claims of insider trading. Australia managed a small gain after spending much of the day in negative territory. Qantas led the way with a two day gain of nearly 9% after regaining investment grade status.

Europe is lower on Chinese growth fears, as the President Xi Jinping felt the economy faced ‘considerable downward pressure’. This has inevitably led to weakness in the commodity sector with BHP Billiton down 1.6%, Glencore is down 2% and Anglo American is 1.2% lower. After the takeover deal yesterday, investors are nervous that Air Liquide has overpaid and the shares are down over 4%. Other fallers include Yara International down 2.46%, Telefonica down 3.75% and LVMH is down just over 1%.