European shares were steady this morning, helped by gains in insurers, while expectations of more stimulus measures from the European Central Bank also supported equities. The ESTX 50 (+0.18%) and the CAC 40 (+0.02%) both gained, while the Dax (-0.19%) and the UK markets (-0.12%) both decreased. The ECB is expected to unveil its second stimulus cocktail in three months later today, spurred by fears that low energy costs are feeding into wages and prices, potentially perpetuating ultra low inflation. Aviva rose +5% after posting higher profits and dividends. K + S fell -4.9% after it warned of a significant drop in operating profit this year. Ashtead Group Plc fell -3.5% after Deutsche Bank AG recommended selling shares of the company.
US stocks rose in low volume, led by the direction of the price of oil and energy sector shares. The Dow Jones Industrial Average (+0.21%), S&P 500 (+0.51%) and the Nasdaq Composite (+0.55%) all increased. Crude oil and US equity prices have been linked for much of 2016 to a degree that has surprised many investors. Yesterday’s market action extended that trend, with WTI crude rising nearly +5% and the S&P 500 energy sector up +1.5%. Chevron jumped +4.6% and gave the biggest boost to the energy sector. Chipotle Mexican Grill lost -3.4% after temporarily shutting a Massachusetts restaurant after four employees fell sick. Regeneron Pharmaceuticals dropped -5.1% and was the biggest decliner in the Nasdaq.
Asian stocks edged higher, encouraged by a rally in crude oil prices and expectations that the European Central Bank will ease policy later in the day, emulating policymakers elsewhere seeking to bolster their struggling economies. The Nikkei 225 (+1.26%) rose, while the Hang Seng (-0.06%) and S&P/ASX 200 (-0.14%) both declined. NCSoft Corp jumped +10% in Seoul as the company’s new mobile game app became popular in China. Golden Agri-Resources Ltd rallied +6.6% in Singapore, pacing gains among oil producers as the raw material climbed to a two week high. Kansai Electric Power Co tumbled -15% in Tokyo, the most since 1987, after a Japanese court issued an injunction preventing the company from operating two of its nuclear reactors due to safety concerns.
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.