European shares dropped this morning, tracking losses in equity markets worldwide spurred by increasing worries of the pace of global growth. The ESTX 50 (-0.36%), UK Markets (-0.49%), CAC 40 (-0.55%) and the Dax (-0.62%) all posted losses in early trading. Old Mutual dropped -1.99% after Sky News reported that the company is in advanced talks to acquire Quilter Cheviot for about £650 million. Tullow Plc retreated -2.28% after saying the Sputnik-1 well offshore Gabon is encouraging in its latest well update. Jupiter Fund Management lost -1.7% after saying assets under management dropped to £31.7 billion in the third quarter from £33.1 billion at the end of June. Anglo American Plc (-3.21%), Fresnillo Plc (-3.70%) and Antofagasta Plc (-2.84%) dropped as commodity producers decreased. Carnival Plc fell -2.8%.
US stocks dropped on concern that slowing growth in Europe will hurt the US economy as the Federal Reserve ends its bond purchases. The Dow Jones Industrial Average (-1.97%), S&P 500 (-2.07%) and the Nasdaq Composite (-2.02%) all retreated. Energy shares were the weakest group, dropping -3.7% for their biggest one-day decline since April 2013 as West Texas Intermediate oil joined Brent in falling more than 20% this year’s June peak on concern rising global supplies will be more than enough to meet slowing demand. Newfield Exploration Co and QEP Resources Inc both lost more than -6.3%. Material stocks also suffered, with Newmont Mining Corp and Dow Chemical Co both falling at least -3.5%. Gap Inc plunged -12% after saying its CEO will step down. Advanced Micro Devices Inc sank -10% after announcing a new CEO a week before reporting earnings. Alcoa fell -4.2% after unofficially starting the earnings season. Apple Inc climbed +0.2% after investor Carl Icahn urged the company to accelerate share repurchases.
Asian stocks fell after US shares tumbled amid European slowdown concerns and Hong Kong cancelled talks with pro-democracy protestors. The Nikkei 225 (-1.15%), Hang Seng (-1.79%) and the S&P/ASX 200 (-2.05%) all declined. Japanese exporters dropped. Honda lost -1.5%, Nissan Motor Co declined -1.6% and Panasonic Corp dropped -2.5%. Mitsubishi Materials Corp tumbled -2.6% after a report it missed its first half operating profit forecast. Gree Inc jumped +8% after saying it will join a game development venture with messaging app operator Line Corp. Fast Retailing added +1.7% on a higher profit forecast. China Oilfield Services Ltd plunged -4.5% after crude oil futures dropped amid speculation that demand is slowing. PetroChina Co, China’s biggest oil company, dropped -2.7%. Datong Coal Industry Co jumped +3.3% in Shanghai after China re-imposed an import tax on the fuel.
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.