After a turbulent October, US equities closed at record highs on Friday with the Dow Jones Index up 1.1% and the S&P 500 Index was up 1.2%. The optimism on Friday was driven by the extension in QE by the Bank of Japan and also the highest reading in consumer confidence since July 2007. Positive stocks included Du Pont up 2.2%, Texas Instruments was up 4.5% and Chevron was up 2.4%. Amongst the fallers, commodities were weak once again with Newmont Mining down 7.7%.
Asia was relatively quiet in overnight trading with Japan closed for Culture Day public holiday. There was some weakness in Chinese markets as the economy grew at an annualised rate of 7.3% in the third quarter. This was the slowest pace in more than five years. There was also weakness in South Korean car stocks with the weak Yen overhanging their competitive positioning. Hyundai Motor lost 5.9% and Kia Motors dropped 5.57%. In Australia, Woolworths fell nearly 5% after the retailer issued a profit warning.
Europe has opened flat to slightly lower in early trading with French media giant Publicis agreeing a $3.7 billion takeover offer for US consultancy, Sapient. The shares are 3.3% lower on fears the deal looks overpriced. The fall in oil prices has also helped Ryanair which reported record profits and the shares are 9% higher. Easyjet is following higher with a gain of 2.6%, Standard Chartered is rallying 1.77% and Tesco is up 1.27%.
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.