Morning Message

Monday Morning Update

Monday 10th April 2017

European shares were mixed this morning, with investors digesting last week’s US missile strike in Syria and weaker than expected US job data. The ESTX 50 (-0.34%), Dax (-0.11%) and the CAC 40 (-0.52%) all posted losses in early trading, while the UK markets (+0.09%) were positive. BHP Billiton surged nearly +5% after activist investor Elliot Management urged the company to consider a spin off of its petroleum assets, comprised predominantly of shale assets. Barclays was up +0.14% after telling investors its CEO Jes Staley is under investigation over the handling of a whistleblowing complaint.

US stocks decreased in a choppy session as investors grappled with a weaker than expected job report, the US airstrike in Syria and a top Federal Reserve official’s on trimming the US bank’s balance sheet. The Dow Jones Industrial Average (-0.03%), S&P 500 (-0.08%) and the Nasdaq Composite (-0.02%) all declined. Tomahawk maker Raytheon gained +0.02%. Ruby Tuesday dropped -5.71% following it quarterly results and news of a new CEO. Twitter declined -0.69% after suing the US government for seeking to unmask an account critical of the Trump administration. Apple lost -0.22% after it was reported that the company has allocated 80 acres for parking at its eye-catching new campus.

Asian shares were mixed on the back of heightened geopolitical tensions after a move by the US military to send an aircraft carrier group near the Korean Peninsula and a US missile strike in Syria on Friday. The Nikkei 225 (+0.71%) and the S&P/ASX 200 (+0.86%) both increased, while the Hang Seng (-0.02%) was flat. North Korea responded to the US strike on a Syrian airbase by stating that it was a justification for its own nuclear weapons program, adding it had to protect itself against Washington’s “reckless moves for a war”. Suzuki Motor climbed +1.44% after Citigroup analyst’s said the shares remain attractive at the current level, in light of the prospects for longer term demand growth in India. LG Display rose +0.84% after reports of an offer from Google to invest $880.29 million in order to increase OLED screen production for Google’s Pixel smartphone.

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