European shares climbed on confidence over global growth amid central bank stimulus. The ESTX 50 (+1.78%), UK markets (+0.47%), CAC 40 (+1.69%) and the Dax (+1.76%) all posted gains in early trading. Banks accounted for most of the advance. Raiffeisen Bank International AG jumped +8.2% and ING Groep NV rose +2.9%. Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA added more than +1.5%. Swiss companies rallied. Novartis increased +1.9% and Roche gained +1.5%. ABB Ltd added +1.8% after saying it will propose former Royal Dutch Shell Plc CEO Peter Voser to become chairman after Hubertus von Gruenberg decided not to stand for re-election. Randgold and Anglo American climbed more than +1%, following their peers in Europe higher. Shire Plc added +2.7% as Citigroup Inc said the company’s speculated takeover of NPS Pharmaceuticals Inc would drive 2016-2019 earnings accretion of as much as 13%. London Stock Exchange Group Plc rose +2.1% after reporting an annual increase in trading activity.
US stocks jumped the most since 2013, erasing about half their December losses, as energy shares rebounded and the Federal Reserve said it will be patient on the timing of interest rate increases. The Dow Jones Industrial Average (+1.69%), S&P 500 (+2.04%) and the Nasdaq Composite (+2.12%) all posted gains in early trading. Noble Energy Inc rose +10% and Nabors Industries Ltd surged +9.3%, while Newfield Exploration Co and Transocean Ltd added +8.5%. Exxon Mobil Corp and Chevron added at least +3%. McDonald’s Corp rose +3.3% after Bill Ackman said the company could be managed better. FedEx Corp lost -3.7% after quarterly profit missed analysts’ estimates. Cliffs Natural Resources Inc retreated -5.7% after Credit Suisse said the company will need to be recapitalised within the next two years and near term earnings aren’t sufficient to support its debt load. The broker also cut its share price target to $1 from $10.
Asian stocks rose after the Federal Reserve pledged patience on interest rate increases and the yen weakened, boosting Japanese equities. The Nikkei 225 (+2.32%), Hang Seng (+1.09%) and the S&P/ASX 200 (+0.95%) all advanced. Toyota Motor Corp gained +1.5% in Tokyo as the yen held losses after yesterday dropping the most against the dollar in six weeks. Honda Motor Co gained more than +1%. Tencent Holdings Ltd jumped +6.3% in Hong Kong amid signs the internet stock was oversold. Nippon Suisan Kaisha Ltd jumped +7.2%. Shiseido dropped -4.3% after Shiseido President Masahiko Uotani said the company will buy brands aggressively, and will also close 28 of its smaller brands.
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.