The US equity market was boosted on Monday with a strong performance from the wider commodity sector. It has now rallied more than 20% from the January low. Crude oil closed at a ten month high, a salutary lesson not to believe many of the most bearish market forecasts. Nabors gained 12.6%, Transocean was up 14.6%, Halliburton rose nearly 5% and Alcoa was up 3.4%. Financials were also buoyed by strong buying with Bank of New York up 2%, Morgan Stanley rose 1.1% and JP Morgan was up 1%. Other stocks to gain included Lindsay Corporation up 5%, Deere gained 2.2%, Bristol Myers was up 1.9% and Texas Instruments was up 1.3%. The Retailing sector was weaker again with Abercrombie & Fitch down 2%, Home Depot declined 1.9% and Lowes fell 2%.
Asia equities were typically stronger with Japanese stocks also buoyed by the positive commodity sector. Shares in Inpex, the largest oil and gas explorer rose nearly 5% and Showa Shell climbed 3%. However this meant that airlines were negative with Japan Airlines down 2.4%. Suzuki was down nearly 2% as reports suggested that the Government would re-test fuel efficiency. The Emerging Markets Index looked set to enjoy the longest rally in over two months with Posco in South Korea up 7% on a more positive backdrop for the sector. Australian miners continued to climb with Rio Tinto up another 2.3% and BHP Billiton up 3.2%. In China, PetroChina added 2.2% and China Oilfield Services rose 6%.
Europe is in positive mood today with the wider Euro Stoxx index up over 1%. Financials are positive with Deutsche Bank up 2.75%, Unicredit is up 2.24% and Commerzbank is up nearly 2%. Other risers across the Continent include RWE up nearly 3%, Thyssenkrup is up 2.3%, BASF is up 2.2% and Renault is 1.7% higher. In France, Vivendi is down 1.2% after Barclays downgraded the stock with a 16.50 price target, against the current price of 16.90. Royal Dutch Shell is leading the UK higher with a gain of 2.6% and the company remain confident they can deliver further cost savings following the BG Group takeover. Other risers include Old Mutual up 1.3%, Rolls Royce up 1.4% and Shire up 1%. Decliners include Direct Line Insurance down 0.8%, Imperial Brands down 0.5% and Compass Group down 0.5%.
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.