European stocks were little changed as investors weighed the German election result. The ESTX 50 (+0.20%), FTSE 100 (-0.08%), CAC 40 (+0.25%) and the DAX (+0.18%) all posted small moves in early trading. German Chancellor Angela Merkel won 41.5% of the vote in her bid for a third term as leader of Europe’s largest economy. That still leaves her short of a majority, with Merkel needing to find a coalition partner after the Free Democrats failed to win seats in the lower house of parliament. National Grid Plc declined -1.6% after UBS AG cut its rating on the stock. Aberdeen Asset Management Plc climbed +1.9% after forecasting full year profit at the upper end of analyst projections. Randgold Resources Ltd lost -1.3% as an index of mining companies retreated.
US stocks fell amid concern that Federal Reserve stimulus reductions and political debate over government spending pose a threat to economic growth this year. The Dow Jones Industrial Average (-1.19%), S&P 500 (-0.72%) and the NASDAQ Composite (-0.39%) all declined. The S&P Supercomposite Homebuilding Index slipped -2.7%, the biggest loss since for a month. Yields on 10 year Treasury bonds have climbed to 2.73% from a low of 1.63% in May. Microsoft fell -2.5% and GE decreased -1.8%. Caterpillar declined -3.4%, the most in the Dow, after saying total machine sales reported by dealers fell 10% in the three months through August from a year earlier as sales fell in every region except North America. BlackBerry plunged -17% after saying it will cut 4,500 jobs and record an inventory writedown of as much as $960 million after a new set of devices failed to catch on with consumers. AK Steel slid -8% after predicting a loss in the third quarter of 22 cents to 27 cents a share.
Asian stocks declined despite a Chinese manufacturing index jumping more than forecast. The Nikkei 225 (-0.16%), Hang Seng (-0.56%) and the S&P/ASX 200 (-0.46%) all retreated. Delta Electronics Inc surged +6.3% leading technology shares higher. Woori Finance Holdings Co gained +1.6% in Seoul amid speculation sales of its regional bank units will succeed. Newcrest Mining Ltd slumped -8.2% after the price of the precious metal fell for a second day. Perseus Mining Ltd retreated -16%, Zijin Mining Group Co lost -5.9% and Zhaojin Mining Industry tumbled -5.4%. Treasury Wine Estates Ltd lost -6.3% in Sydney after saying CEO David Dearie will leave.
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.