European shares retreated this morning as hopes of a deal between Greece and its creditors at a summit later in the day receded. The ESTX 50 (-0.24%), UK markets (-0.38%), CAC 40 (-0.31%) and the Dax (-0.27%) all posted losses in early trading. Greece has snubbed European creditors’ pleas to submit a new proposal to avert insolvency, with both sides claiming the other has to make the first move. German Chancellor Angela Merkel is seeking to restore calm after exchanges have grown increasingly acrimonious. SAP dropped -1.6% after rival Oracle Corp forecast quarterly profit below analysts’ estimates. Bilfinger SE tumbled -9% after saying a review revealed substantial losses at its power business. The company said it will sell the unit within a year. Car manufacturers suffered this morning with Volkswagen AG and Renault SA slipping at least -1.3%.
US stocks rose after the Federal Reserve said the US economy is likely strong enough to withstand an interest rate hike later this year. The Dow Jones Industrial Average (+0.17%), S&P 500 (+0.20%) and the Nasdaq Composite (+0.18%) all increased. Even if the majority of Fed officials continue to see higher rates by the end of 2015, they expect rates to rise slightly by the end of 2016 and 2017 than they did in their March forecasts. Adding to support for equities, investors have seen the proximity of rising rates as a trigger for more M&A activity, with mergers and acquisitions already at record levels. FedEx fell -3% after reporting a quarterly loss. Oracle fell nearly -7% in afterhours trading after missing revenue expectations.
Asian stocks dropped as Chinese stocks slumped after 11 companies launched IPO’s, putting pressure on liquidity and Japanese stocks suffered as the yen strengthened following the Federal Reserve’s comments. The Nikkei 225 (-1.13%), Hang Seng (-0.21%) and the S&P/ASX 200 (-1.26%) all dropped. Financial and technology companies led declines among Chinese shares with bank of Communications Ltd and Leshi Internet Information & Technology sliding more than -4%. China Shipping Development Co jumped +5.3% as a measure of commodity shipping costs posted the longest stretch of gains since March. Mitsui & Co slid -1.3% after Mitsubishi UFJ Morgan Stanley Securities Co cut its rating on the trading company. Nissan Motor Co, which gets almost half its sales from north America, lost -2.3%.
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.