European stocks declined, amid continued debate over Greece’s fate, and speculation the Federal Reserve will signal a slow pace of monetary tightening. The ESTX 50 (-0.04%), UK markets (-0.05%), CAC 40 (-0.18%) and the Dax (-0.13%) all posted losses in early trading. Faurecia SA dropped -2.1% as Credit Suisse Group AG cut its 2015-2017 earnings estimates for auto suppliers because of weakness in the Chinese market. Telecom Italia SpA added +3.4% after it was reported that Vivendi SA may increase its stake in the company to as much as 15%. Berkeley Group Holdings Plc rose +8.6% after posting a 45% jump in full year earnings. J Sainsbury Plc slipped -1.2% after Credit Suisse Group AG rated the shares “underperform”, citing margin pressure.
US stocks rose with merger activity more than offsetting market concerns as Greece struggles to avoid a default on its debt. The Dow Jones Industrial Average (+0.64%), S&P 500 (+0.57%) and the Nasdaq Composite (+0.51%) all increased. Consumer staples led the way, with Coty shares closing up +19.3%. Coty is on track to buy Procter & Gamble’s beauty business in a $12 billion deal. P&G shares closed up +1.3%. In other merger news, shares of NCR Corp hit a 14 month high after Reuters reported Blackstone and Carlyle are making a joint bid for NCR in what would be year’s biggest leveraged buyout at more than $10 billion, including debt. NCR closed up +10.7% while Blackstone fell -0.6% and Carlyle rose +0.8%.
Asian stocks rose as investors awaited a Federal Reserve decision on monetary policy. The Hang Seng (+0.78%) and the S&P/ASX 200 (+1.08%) both increased, while the Nikkei 225 (-0.19%) decreased. Commonwealth Bank of Australia rose +2.3% after Warren Buffett told The Age newspaper he may buy a stake in banks trading in Sydney. Bank of Communications climbed +1.7% in Hong Kong after the bank said it will explore adding private capital and giving strategic investors a more effective role. Morinaga & Co added +4.6% after a brokerage raised its rating on the stock. Kose Corp jumped +4% after Credit Suisse Group AG boosted its share price outlook on the company.
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.