US equities pulled back from all time highs on the S&P 500 as investors continued to speculate on the timing of the Fed taper. Some of the economic data they focussed on was US job openings which were at a five year high. This has led to a significant number of economists believing the taper will start at the December meeting next week. In stocks, Campbell Soup gave up yesterday’s gains and declined by 3.73%. News of a new chief executive at General Motors was greeted in unimpressive fashion by investors and the stock closed down 1.2%. Slowing sales growth at Starbucks saw the shares lose 3%, with Dunkin Brands falling just over 1%. The tremendous growth story at Autozone continued with the stock gaining 3% after the auto parts company reported higher than forecast quarterly earnings.
In Asia there was widespread weakness in equities, with Hong Kong dropping 1.7% and Australia falling 0.75%. There were fears that China would downgrade economic growth targets at next week’s policy meeting. Financials were weaker with Industrial & Commercial Bank of China down nearly 3%, Bank of China fell 2.4% and Bank of East Asia was down 2.8%. China Mobile was weak once again falling just over 3%, this time a broker questioned the 4G take up of iPhones. Japanese stocks were generally lower on a firmer Yen, exporters such as Tokyo Electron fell over 2%. The paper sector was in focus after a major broker downgrade, Mitsubishi Paper fell 3% and Nippon Paper lost nearly 4.5%.
Europe is once again quiet this morning with few stand out features. EADS yesterday announced further restructuring of the business with 5,000 job losses confirmed, the shares today are 1.1% higher. Other gainers include Vivendi which is 1.7% up, Metro is up by 1.4% and Thales is up 1.3%. In the UK, Lloyds Banking has been hit by a £28m fine from the FCA regarding pressured incentive schemes, the shares are 0.68% lower. Royal Bank of Scotland is down nearly 2% after the loss of the Finance Director after only 11 weeks. Weak metals prices continue to overhang the miners with Rio Tinto down 1.4% and BHP Billiton down 1.5%.
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.