US equities ended nearly flat in Friday trading with upbeat retail sales data providing comfort to investors. The figures for October showed a 0.3% rise in retail and food sales against the 0.2% consensus. Consumer sentiment for November also jumped to the highest reading in seven years, again enforcing the health of the US economy. There was a brief glimmer of light in the gloom that has been the commodity sector with Newmont Mining rising nearly 5% on bargain seekers. Other gainers included Cisco Systems up 2.50%, Dow Chemical was up 2.82% and Amazon was up just over 3.50%. Among the fallers, Amgen lost nearly 2%, Invesco fell 1.32% and Kimberly-Clark lost just over 1%.
In Asia equities were weaker after economic data showed that the Japanese economy fell into recession during Q3. Consensus forecasts suggested a 2.2% increase, however the reality was a 1.6% contraction. The Nikkei, unsurprisingly, fell nearly 3% with Dai-ichi Life falling nearly 5%, Nomura Holdings lost nearly 4% and Hino Motors lost 5.44%. In Australia, there was a sharp rebound in the battered iron ore sector with Mount Gibson up nearly 8% and Atlas Iron gained 7.3%. Banks were weaker on the Japanese recession news with ANZ down 1.33% and Commonwealth Bank down nearly 1%.
Europe is in negative territory to start the trading week with Airbus down 2.16%, Credit Agricole is down by 1.25% and Carlsberg is 1.17% lower. In the UK, notable decliners include Tesco down 1.41%, HSBC is down 1.12% and AstraZeneca is nearly 2% lower. The continuing mild weather conditions in the UK are leading many analysts to downgrade clothing retailer forecasts, Ted Baker is down 1.06% and over the last month SuperGroup has fallen by 23%. A broker Sell note on Weir Group has seen the shares fall over 4% this morning. In Switzerland, Sonova is down just over 2% after the hearing aids manufacturer posted a profit warning.
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.