US equities were stronger in Monday’s trading as investors looked to pick up oversold positions after last week’s falls. In the Financials sector, Citigroup, unexpectedly beat market estimates and the shares rose 4.35%. The company highlighted strong capital markets revenue, better than expected loan losses and controlled expenses. In the economy, there were strong retail sales figures for March, rising by 1.1%, the biggest gain since September 2012. Other notable gainers on the day included Alcoa up 2.55%, Transocean was up just over 4% and Frontier Communications gained 2.8%. The only real faller was The Gap which lost 1.6%.
Asia was mixed once again with Japan following the US markets, however Hong Kong and China related stocks fell sharply on tightening credit conditions and money supply that grew at the slowest pace since 2001. Great Wall Motor reversed yesterday’s gains with a near 6% decline as a result of the economic data but also a downgrade from broker, JP Morgan. Hong Kong Exchanges also gave up some of the recent gains from the news last week of cross border trading, the shares lost nearly 4%. In Japan, some of the gainers included Hitachi up 1.5%, Nippon Electric Glass up nearly 5% and Toho Zinc up nearly 7%.
Europe is weaker in early trading, overshadowed by the Chinese economic data overnight. Lloyds Banking Group continues its miserable recent run, down 0.55% to 72p. Other fallers include HSBC down 0.61%, Standard Chartered down 0.59% and Santander down 1%. In France, the support services company, Sodexo, is up 4.5% after a Deutsche Bank buy rating was issued. Swiss Re is lower only after a special capital payment to shareholders. Cap Gemini is 2.5% higher after being cited as a likely takeover target. Finally, SABMiller is down 2.5% after full year results underwhelmed investors. In the current year, the brewer will be held back by adverse FX movements in the South African Rand against the US Dollar.
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.