European shares declined as concerns about faltering global economic growth hit equity markets across the world. The ESTX 50 (-0.13%), UK Markets (-0.05%), CAC 40 (-0.27%) and the Dax (-0.12%) all posted losses in early trading. Gas Natural SDG SA fell -4.4% after offering to buy Chile’s Compania General de Energia SA for €2.6 billion. Deutsche Bank AG declined -1.2% as Spiegal reported the bank’s provisions for potential legal costs may reach €7 billion. Accor SA slipped -1.6% after making an indicative offer to buy Louvre Hotels Group. Randgold Resources Ltd (+2.10%) and Polymetal International Plc (+3.03%) both advanced after China reported faster trade growth and gold rose. Royal Bank of Scotland Plc gained +0.87% after the Economic Times reported that the bank plans to exit its private banking business in India as part of a global decision to sell international operations of its private banking arm Coutts.
US stocks posted their largest weekly declines since May 2012 and the Dow turned negative for the year, led by technology stocks after Microchip Technology warned of a broad based industry downturn. The Dow Jones Industrial Average (-0.69%), S&P 500 (-1.15%) and the Nasdaq Composite (-2.33%) all retreated. Microchip Technology shares tumbled -12.3%, falling as much as 15.4% from a 13 year high hit less than a month ago, after saying quarterly revenue was hurt by a decline in China sales and warned of an industry correction. Micron Technology dropped -9.3% and Intel Corp was down -5.1%. Juniper Networks Inc sank -9.1% after reporting preliminary results that missed its own forecast. L-3 Communications Holdings posted the biggest gain on the S&P 500, climbing +6.5%.
Asian stocks were mixed as declines for oil and consumer staples companies overshadowed data showing exports rose more than estimated. The Hang Seng (+0.24%) advanced, while the S&P/ASX 200 (-0.63%) declined. The Nikkei 225 was closed for a national holiday in Japan. China Petroleum & Chemical Corp retreated -1.5% after Brent futures extended their slump to the lowest in almost four years. Inner Mongolia Yili Industrial Group Co slid -6.3% as consumer staples suffered the most among industry groups. Wei Chuan Foods Corp plunged -7% after its chairman quit following a recall of three of its products. Taiwan Semiconductor Manufacturing, MediaTek Inc and Delta Electronics Inc all dropped more than -3%, following declines in US technology shares. China Mobile Ltd advanced +2%. Lenovo dropped -2.8% after Jefferies Hong Kong Ltd said the company was facing competition in its servers and smartphone businesses.
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.