European stocks climbed, following global equities, after the Federal Reserve met investor expectations by raising rates for the first time in almost a decade. The ESTX 50 (+2.52%), UK markets (+1.14%), CAC 40 (+2.31%) and the Dax (+2.55%) all posted gains in early trading. Banco Santander SA and BNP Paribas SA rose at least +2.5%, while an advance of at least +2.3% in ArcelorMittal and Antofagasta Plc led a gauge of miners higher for a third day. AstraZeneca Plc added +1.7% after agreeing to buy a 55% stake in Acerta Pharma BV for $4 billion. SAP SE climbed +1.4% after peer Oracle Corp reported quarterly earnings that beat estimates. London Stock Exchange Group Plc advanced +1.8% after saying it had a good performance across businesses. Old Mutual Plc jumped +6.55%.
US stocks rallied after the Federal Reserve announced it is raising its key policy rate for the first time in nearly a decade in a sign of confidence in the US economy. The Dow Jones Industrial Average (+1.28%), S&P 500 (+1.45%) and the Nasdaq Composite (+1.52%) all increased. Markets judged the Fed’s statement to be dovish, supportive of risk assets including equities. Defensive sectors of the market, recently hit in anticipation of the rate hike, were the best performers. The US Central bank said the economy is expected to continue to perform well and a slight increase in the fed funds rate was appropriate, while it recognised that even after this rise monetary policy remains accommodative. Honeywell International Inc jumped +5.7% after forecasting sales and earnings above analysts’ expectations. General Electric Co rallied +2.2% after projecting the return of about $26 billion in cash to investors through dividends and stock repurchases in 2016. After the bell, FedEx jumped +5% after reporting better than expected quarterly net profit.
Asian stocks rose after the Federal Reserve raised US interest rates for the first time in almost a decade and signalled a gradual pace for future increases. The Nikkei 225 (+1.59%), Hang Seng (+0.79%) and the S&P/ASX 200 (+1.46%) all advanced. Marui Group Co advanced +6.8%, pacing gains among Japanese retailers after data showed foreign visitors to the country continued to increase in November. Sino-Ocean Land Holdings Ltd gained +0.2% after saying in an exchange filling that Anbang Insurance Group had raised its stake in the company to 30% by acquiring shares worth $426 million this month.
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.