European stocks declined as investors watched developments in Iraq and awaited a report on US consumer confidence. The ESTX 50 (-0.31%), UK Markets (-0.38%), CAC 40 (-0.34%) and the Dax (-0.49%) all posted losses in early trading. Barratt Developments slid -4.4%, Land Securities Group Plc dropped -3.2% and British Land Co fell -3% after George Osborne promised the Bank of England new powers over mortgage lending. Separately, Bank of England Governor Mark Carney said rising UK mortgage debt may threaten Britain’s recovery as he signalled interest rates might start to rise earlier than anticipated. Gulf Keystone Petroleum Ltd increased +4.4% after saying production at its Shaikan operation in the Kurdistan region of Iraq is stable and plans to increase output capacity are on track. R.Stahl climbed +3.7% after Weidmueller raised its offer for the company to €50 per share from a bid of €47.5 per share in April. Geberit AG gained +2.7% after Goldman Sachs raised its rating on the company to “buy” from “sell”.
US stocks retreated as industrial and consumer discretionary shares plunged after escalating violence in Iraq sent oil to an eight month high while economic data missed estimates. The Dow Jones Industrial Average (-0.65%), S&P 500 (-0.71%) and the Nasdaq Composite (-0.79%) all retreated. Energy producers in the S&P 500 gained. Noble, a contract drilling company, rallied +3.1% and Diamond Offshore jumped +3.3%. Chevron Corp climbed +0.7%, the most in the Dow. Lululemon Athletica Inc declined -16% after forecasting full year earnings that fell short of analysts’ estimates. Keurig Green Mountain Inc advanced +4.1% for the biggest gain in the S&P 500 after saying it is committed to returning cash to investors. Intel jumped +3.8% in extended trading after raising its forecast for second quarter revenue as demand for corporate personal computers picks up. Delta sank -5.4%, United Continental lost -5.9% and Southwest Airlines Co dropped -4.5% as West Texas Intermediate crude jumped 2%.
Asian stocks gained as oil explorers advanced, while airlines retreated as oil surged amid escalating violence in Iraq. The Nikkei 225 (+0.83%) and the Hang Seng (+0.59%) both gained, while the S&P/ASX 200 (-0.44%) declined. Inpex climbed +4.5% in Tokyo. Cnooc Ltd rose +2.1% in Hong Kong. Woodside Petroleum Ltd gained +1.9%. Advantest increased +3.6% in Tokyo after the Nikkei reported that chip testing equipment orders in the three months to June may reach 50 billion yen. The company originally projected orders for the quarter at between 40 billion yen and 45 billion yen. Airlines declined as the price of oil rose. Korean Air slipped -1.6%. Japan Airlines Co slipped -2.9%. Tiger Airways Holdings Ltd fell -1% in Singapore.
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.