European stocks declined this morning amid investor concern about central bank’s willingness to continue supporting economic growth with loose monetary policy. The ESTX 50 (-2.08%), CAC 40 (-2.08%), Dax (-2.00%) and the UK markets (-1.56%) all posted losses in early trading. Linde AG tumbled -8.4% after saying it terminated talks for a combination with Praxair Inc that would have created the world’s largest supplier of industrial gases. RWE AG fell -2.9% after confirming plans for an initial public offering of Innogy SE shares in the fourth quarter. SVG Capital Plc jumped +14% after HarbourVest Global Private Equity Ltd offered to buy it for about £1 billion.
US stocks dropped as investor nervousness increased following a nuclear test by North Korea and Federal Reserve official’s comments lifted rate increase bets. The Dow Jones Industrial Average (-2.13%), S&P 500 (-2.45%) and the Nasdaq Composite (-2.54%) all decreased. Kroger’s rose +0.6%, paring earlier losses after giving a disappointing outlook. Outlooks from Sprouts Farmers Market Inc and SuperValu Inc earlier last week also disappointed investors. Dow Chemical Co dropped -1.62% and DuPont Co lost -1.79% after a review deadline for the proposed merger between the two companies by the European Union’s antitrust regulator has been suspended.
Asian stocks followed US shares lower, as policy officials at central banks signalled a reluctance to extend stimulus. The S&P/ASX 200 (-2.24%), Hang Seng (-3.36%) and the Nikkei 225 (-1.73%) all dropped. Samsung Electronics Co tumbled -7% in Seoul after US regulators and company warned users of its Note 7 smartphones to immediately turn off and stop charging them. Cautions were issued after dozens of the phones had batteries that caught fire or exploded. China Life Insurance Co dropped -4.7%, pacing Chinese insurers lower and China Construction Bank Corp fell more than -4.6%.
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.