US equity markets finished the week with further declines as investors continued to worry over the Chinese economy, it was the worst week since 2011. There was also evidence that the US economy hit a flat spot during December, impacted by weakness in the manufacturing sector. One of the biggest fallers was retailer, The Gap, which sank 14% on a profit warning, caused by falling sales at its Old Navy chain which had previously been seen as the star. Other retailers to decline included Abercrombie & Fitch down 7.5%, Target Corp down 3.5% and Wal Mart down 2.3%. Crude oil prices also remained under downward pressure with Chevron losing 1.07%, Exxon Mobil down 2% and Transocean down 2.3%. Other fallers included Citigroup down 3%, Alcoa down 2.4%, Cisco down 2.5% and Boeing fell 2.27%.
Asia saw further falls with the Shanghai Composite closing down 5.3% as a record 46th month of falling factory gate prices added to pessimism over the economy. PetroChina lost 3.6%. Japanese markets were closed for a Public Holiday. In Hong Kong, the Hang Seng Index fell below 20,000 for the first time since 2013 with China Overseas Land down 4.8% and Evergrande down 5.7%. In Australia, mining stocks closed at multi year lows with Rio Tinto down 3.3% and BHP Billiton down nearly 5%. Banks also suffered with ANZ losing 1.5% and National Australia Bank down 1%.
In Europe equities are trying to rally led by the Financials sector with Commerzbank up 2.4%, Santander up 3.2% and Credit Agricole up nearly 1.7%. Improved bond markets have also helped Zurich Insurance up 2.9% and AXA up nearly 2%. In Italy, Telecom Italia is up 2.6% on reports it will sell the remainder of its Tower division this year. The Autos sector is also positive with consumers benefitting from lower oil prices with Daimler up 2.65, Renault up a similar amount and Porsche gaining 4.6%. In the UK, BAE Systems has continued its positive recent run up another 1.7%, whilst Whitbread is 1.8% higher and Sage is up 1.65%.
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.