European stocks opened sharply this morning on the back of gains in Asia where the Nikkei surged more than 7% and China moved to ease devaluation concerns. The ESTX 50 (+2.94%), UK markets (+1.78%), CAC 40 (+3.09%) and the Dax (+2.59%) all posted gains in early trading. Bank sector stocks were among the top sectorial gainers, extending Friday’s rebound, with sentiment helped by news that the European Central Bank is in talks to buy bundles of Italian bad bank loans as part of its asset purchase programme. Reckitt Benckiser Group rose +4.7% after stronger than expected full year sales. Orange added +3% after a report said a deal to take over rival Bouygues could be presented tomorrow.
US stocks advanced as financial, commodity related and other beaten down shares rebounded. The Dow Jones Industrial Average (+2.00%), S&P 500 (+1.95%) and the Nasdaq Composite (+1.66%) all gained. US oil prices settled 12.3% higher, boosting the S&P energy sector by 2.6%. JPMorgan jumped +8.3% after CEO Jamie Dimon bought more than $25 million of the bank’s stock. Financials have been the weakest performing sector this year. Recession fears have compounded concern about their exposure to the energy sector and expectations that global interest rates are unlikely to rise quickly. Wynn Resorts rose +15.8% after the casino operator reported strong quarterly profit.
Asian stocks headed for their biggest advance in almost seven years as Japanese shares rallied the most since the financial crisis amid increasing speculation that equities were oversold. The Nikkei 225 (+7.16%), Hang Seng (+3.27%) and the S&P/ASX 200 (+1.64%) all rallied. Toyota Motor Corp added +9.6% as the yen weakened against the dollar. Mitsubishi UFJ Financial Group Inc, which had fallen 41% this year, jumped +8.7%. Rakuten Inc tumbled -1.3%after reporting full year profit slumped 37%. Dai-ichi Life Insurance Co and Japan Post Holdings Co surged more than +10% after both companies posted profit that beat their forecasts. Sumitomo Rubber Industries Ltd soared +18% after targeting a 3.8% gain in fiscal year operating profit.
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.