European shares fell this morning as the US Federal Reserve’s downbeat comments on the state of the global economy overshadowed its decision to keep interest rates on hold. The ESTX 50 (-1.62%), UK markets (-0.69%), CAC 40 (-1.54%) and the Dax (-1.85%) all posted losses in early trading. Deutsche Bank AG fell -2.1% as a person with knowledge of the discussions said the bank plans to close its Russian corporate banking and securities business to cut costs and deploy less capital. RWE AG lost -2.4% after saying it won’t sell a stake to an outside investor. HSBC Holdings Plc and Barclays Plc dropped -1.2% or more. BP Plc and Royal Dutch Shell Plc also fell at least -1%. Randgold Resources Ltd and Fresnillo Ltd each rose more than +3%.
US stocks ended lower after swinging between gains and losses, as the Federal Reserve’s decision to keep interest rates near zero percent raised questions about the strength of the global economy. The Dow Jones Industrial Average (-0.39%) and the S&P 500 (-0.26%) both decreased, while the Nasdaq Composite (+0.10%) gained. Cablevision Systems Corp soared +14% after Altice NV agreed to but the company in a $17.7 billion deal. Airlines rallied after Barclays said the latest leg lower for oil is a positive ongoing catalyst for the industry. United Continental Holdings Inc jumped +6.2%, American Airlines Group Inc gained +2.2% and Spirit Airlines Inc rose +6.7%. Oracle Corp declined +4% after reporting first quarter revenue that fell short of analysts’ projections. Verizon Communications Inc slid -2.1% after it said 2016 earnings could plateau at 2015.
Asian stocks outside Japan rose after the Federal Reserve’s decision not to raise interest rates eased the risk of capital outflows from developing nations. The Nikkei 225 (-1.96%) dropped, while the Hang Seng (+0.30%) and the S&P/ASX 200 (+0.46%) both increased. Hanmi Pharm Co surged +11% in Seoul. Newcrest Mining Ltd jumped +6.9% as bullion headed for its first weekly advance in four weeks. Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group inc fell at least -1.9% in Tokyo after the lender’s credit rating was cut by Standard & Poor’s following its downgrade of Japan.
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.