After the Thanksgiving holiday, the US equity market was only open for half a day but that did not stop a further collapse in the share prices of Energy companies. The crude oil price has continued to fall and Halliburton lost 10.8%, Transocean was down 9.7%, Chevron declined 5.4% and Schlumberger was down 7.4%. Gainers mostly centred on the health of the consumer and this confidence will be boosted further by the falling energy prices. Wal-Mart was up 3%, Target gained 2.5%, Amazon was up 1.5% and Time Warner rose 1.6%. The US Dollar continued to strengthen.
Asia was mixed overnight with a notably poor performance in Hong Kong, which fell nearly 2.6% after poor Chinese economic data. The official factory index fell to 50.3 from an estimate of 50.5, which represents a reading very close to economic contraction. Macau casino revenue declined for a sixth straight month and Galaxy lost 2.6% and Sands China fell 2.1%. Energy shares were awful with PetroChina down 4.4%, Sinopec fell 4.1% and Cnooc dropped 5.5%. In Australia, Qantas rose 4.7% on lower input costs and the stock is now up 84% year to date.
In Europe there are widespread declines as a result of the poor Chinese data and some initial concerns that the US holiday spending was at the lower end of expectations. Vodafone is also in focus down 2.5% on reports that the company is considering a bid for Liberty Global. The mobile giant feels it needs to become more active in the face of BT Group moving into mobile. In the Construction sector, Balfour Beatty is up 4.6% after receiving a bid for some of its portfolio assets of £1 billion. In Germany, E.On is up 3.6% as the utility announce plans to break itself up to focus on renewable energy.
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.