US markets finally rose on Wednesday as investors were cheered by Germany’s stance over Greece and better prospects for the release of more bailout funds. From a market dynamics viewpoint, many will be concerned that the S&P 500 index has traded in its narrowest range this year since 1995. Financials and Technology stocks were once again in the vanguard with Intel up 1.8%, IBM gained 1.95% and Microsoft rose 2.1%. In the Banks, JP Morgan rose 1.7%, Citigroup was 1.8% higher and Goldman Sachs was up nearly 2%. Other climbers included Caterpillar up 2%, Nabors up 3.4% and Abercrombie & Fitch rose 3%.
Asia rebounded as well with most indices up 1/1.5%. In Singapore, the embattled commodity trader, Noble Group, added 6.2% as the management adopted a tough stance over the previous accounting practices. Chinese shares did struggle, as investors were nervous that companies would use the market strength to sell a large number of new shares. China Shenhua Energy lost 1.2% and Poly Real Estate fell nearly 1.5%. In Australia, positive Chinese import data led to a bounce in the iron ore stocks, with BC Iron up 8.5% and Fortescue was up 6.4%. Japan was in positive territory with discount-store operator, Don Quijote, up 7% on increased dividend plans.
Europe is largely holding onto the gains made yesterday with Renault up 1.83%, Cap Gemini is up 1.57% and Credit Suisse is up 1.21%. The luxury goods company, LVMH, is up 2.3% after JP Morgan described the company as offering some of the best growth prospects in the sector, driven notably by handbags. In Italy, Saipem, is up just over 2% on a Citigroup upgrade and ENI is up 0.25%. In the UK, there is further improved performance by the supermarkets with Tesco up 1.75% and Sainsbury up 1.88%. The Chancellor last night announced the sale of the stake in RBS despite still suffering heavy losses, the shares are up 1.3% this morning.
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.