US equities powered higher on Thursday and erased their losses for 2015. The volatility in the crude oil price continued with a near 7% gain, following the near 9% fall on Wednesday. Today will see nonfarm payroll data released, which will provide valuable input into the timing of Fed rate rises. There is still a feeling that Janet Yellen would like to act sooner rather than later. In corporate news, Pfizer agreed to buy Hospira for $17 billion. The company is the biggest provider of injectable drugs and represents a nice addition for Pfizer, Hospira rose 35% on the deal. Other gainers included Freeport-McMoRan up 7.1%, Frontier Communications was up 5.8% and Alcoa rose nearly 4%.
Asia was mixed with advances in the Japanese market offset by declines in Chinese related stocks. There are fears after last year’s meteoric rise in China that many company’s are planning to cash in and sell extra shares. This could create an overhang, at the very time that economic growth continues to slow. PetroChina fell 2.33%, Bank of China lost 2.91% and China Yangtze Power declined 4.2%. In Japan, Nisshin Steel was the biggest Nikkei riser up 19% as the company boosted revenue/profit forecasts by 23%. Other gainers included NHK Spring up 13%, Mitsubishi Estate was up 4.5% and Sumitomo Forestry gained 5.3%. Suzuki was an exception falling nearly 6% as the company lowered revenue forecasts.
Europe is being held back by further Greek fears this morning and also talks in Moscow regarding Ukraine, although the firmer crude oil price is boosting the Energy sector. Statoil is up 2.5%, Seadrill is nearly 3.5% higher and Rosneft is up nearly 1.5%. In the UK, Tate & Lyle is 12% lower on a profit warning, held back by the Bulk Ingredients division. Other fallers in Europe include Anheuser down 1.6%, Cap Gemini is down just over 1% and Nokia is nearly 1.5% lower. In Geopolitics, the French and German leaders are presenting a peace plan to Vladimir Putin, few expect much progress on Ukraine.
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.