US equities endured a volatile session on Friday as the Labour Department reported that the US economy had added only 38,000 jobs in May, the lowest amount in five years. There were also signs of a further slowdown with services growing at the slowest rate for two years. This led to speculation that the Federal Reserve will now not raise interest rates until at least September. This led to a weak Financial sector with Bank of America down 3.5%, Goldman Sachs down 2.6% and American Express down 1.4%. Commodities were the winner of the changing economic scenario as Gold rallied, Newmont Mining rose over 9%, Freeport McMoran was up 4% and iShares Silver climbed 2.5%. In the Retailing sector, the Gap was up over 4% as the company released better than expected sales data.
Asia was mixed in Monday trading with China and Japan lower, offset by gains in Australia and Hong Kong. The Japanese market was predictably lower with a stronger Yen impacting the export sector. Last week the Government delayed the imposition of a higher retail sales tax due to weak levels of consumption. Declining stocks included Panasonic down 2%, Mazda Motor lost 1.3%, Honda fell nearly 2% and Tokio Marine reflected a poor insurance sector falling nearly 3%. In Australia, the mining sector was positive with Rio Tinto up 4%, Newcrest Mining gained 12% and St Barbara rose 15%. In Hong Kong, casino stocks were down on a broker downgrade with Galaxy down 2.1%, Sands down 1.6% and Wynn losing more than 3%.
Europe is up in early trading , although in the UK the level of Sterling is once again under negative pressure as the opinion polls showed the ‘Leave’ camp gaining further ground. The Mining sector is strong here too, with Anglo American up 5.6%, BHP Billiton is up 5% and Glencore is up nearly 4%. UK domestic earners are under negative pressure with Persimmon down nearly 2%, Berkeley Group is also down 2% and Land Securities is down 0.60%. Financials in Europe are trying to rally with Credit Agricole up 1.3%, Santander is up a similar amount, UBS is up 1% and Deutsche Bank is up 0.30%.
Morning Spread 8th March 2017 European shares traded flat this morning, the modest moves masking significant results driven games by several companies on a bust day for European earnings.
Morning Spread 2nd November 2016 Asian stocks followed global equities lower despite gauges of manufacturing in China topping estimates and the Bank of Japan maintained its record stimulus program.
Morning Spread 1st November 2016 Asian stocks were mixed as declines in oil prices dragged energy shares lower and investor anxiety grew over next week’s US presidential election.
Morning Spread 28th October 2016 Asian stocks fell as oil explorers pushed down Hong Kong gauges, while investors digested earnings from several companies.
Morning Spread 27th October 2016 US stocks were mixed following the release of earnings from several companies.
Morning Spread 24th October 2016 US stocks were little changed as a record day for Microsoft and earnings from McDonald’s helped offset a fall in energy and healthcare shares.
Morning Spread 19th October 2016 Asian shares rose as a barrage of Chinese data confirmed the economy had stabilised on the back of government spending and a hot housing market, even if worries about debt continue to mount.
Morning Spread 10th October 2016 Asian stocks were mixed following the second US presidential debate between Hilary Clinton and Donald Trump.
Morning Spread 5th October 2016 Most Asian stocks outside Japan slid on concern central banks will reduce stimulus, while the Nikkei climbed after the yen weakened.
Morning Spread 27th September 2016 Asian stocks advanced with investors viewing Democratic candidate Hillary Clinton as having gotten the upper hand in the first US presidential debate.