Asia equity markets overnight were dominated by the surprise move by the Bank of Japan to boost further the level of Quantitative Easing. This was also accompanied by the State Pension Fund boosting the ownership of local equities and reducing bonds. This resulted in the Nikkei Index gaining a massive 4.83% and closing at a seven year high. The currency tumbled and exporters such as Toyota gained 3.8%, Suzuki was up 6.3% and Nomura was up 6.75%. In Australia, the Financials were in focus with positive results boosting ANZ by 0.72% and National Australia Bank was up just over 1%. China also gained to reach the longest period of monthly gains on the equity market since 2009. Jiangxi Copper was up 1.6%, Baoshan Steel rose 2.1% and Bank of Ningbo was up sharply by 8.6%.
The US equity markets all moved higher on Thursday as the economic growth in Q3 beat expectations, rising by an annualised 3.5%. There was also a raft of positive corporate earnings. Visa, for instance, rose 10%, the most since 2011 and MasterCard was up 9.4%. A notable exception was Avon Products which released a profit warning and the stock fell 9%. Other fallers included the commodity exposed stocks with Newmont Mining down 2.3% and Halliburton down 0.90%.
Europe is following other equity markets higher on Friday, as stocks rally strongly on the last day of the month. Royal Bank of Scotland is one of the biggest gainers in the FTSE 100 with the shares currently up 2.68%, HSBC is up 1.64% and Lloyds is up 1.06%. Strong results from International Consolidated Airlines have seen the shares rise 4.25%. European banks are also rising with UBS up 1.1%, Credit Suisse is up 1.2% and BNP Paribas is up 2.89%. A rare decliner is Anheuser-Busch InBev which reported profits short of expectations. The world’s largest brewer has suffered weakness in China and Russia revenues and the stock is down 2.6%.
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.