European shares rose as traders speculated that the Federal Reserve’s latest policy review will offer encouragement to beleaguered markets. The ESTX 50 (+1.81%), CAC 40 (+1.715), Dax (+1.38%) and the UK markets (+1.14%) all posted gains in early trading. Glencore Plc rose +3.4% as metals advanced. Inditex SA gained +2.3% after reporting better than expected first quarter profit. Zodiac Aerospace jumped +9.3% after reporting better than estimated third quarter sales. Luxottica Group SpA gained +1.7% after Credit Suisse AG recommended buying the stock. Aveva Group Plc tumbled -13% after talks for Schneider Electric SE to buy a majority stake in the company ended without a deal. Schneider gained +3.4%.
US stocks declined as central bank policymakers weighed the health of the US economy and investors worried about an upcoming vote in the UK on whether to leave the European Union. Dow Jones Industrial Average (-0.33%), S&P 500 (-0.18%) and the Nasdaq Composite (-0.10%) all retreated. Synchrony Financial plunged -13% after disclosing expectations of higher charge off rates. Baidu Inc fell -1.7% after it cut its quarterly revenue forecast, citing lower medical advertising as Chinese regulators have been increasing scrutiny of that sector. Alibaba Group Holding Ltd gained +3.1% after the company’s founder said a closely watched sales metric may not remain the standard. Yahoo Inc also rose +2.6%.
Asian shares were volatile as a US Federal Reserve policy decision and Brexit worries kept investors on edge. The S&P/ASX 200 (-1.08%) dropped, while the Hang Seng (+0.39%) and the Nikkei 225 (+0.38%) both advanced. Virgin Australia tumbled -11.86% after the company said it plans to raise $625 million through an equity rights issue, which would bring its recent fund raising efforts to about 1 billion Australian dollars. Under the rights issue, stock will be offered at $0.21 a share, a sharp discount to the close at $0.295. Japanese exporters rebounded on the back of a weaker yen, Canon, Honda Motor, Nissan, Mazda, Sony, Toyota and Panasonic rose 1-2%. Toshiba jumped +7.7%.
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.