European stocks fell as investors considered the possibility of the Federal Reserve increasing interest rates sooner than had been expected. The ESTX 50 (-0.21%), CAC 40 (-0.27%), Dax (-0.28%) and the UK markets (-0.43%) all posted losses in early trading. A US Federal Reserve policymaker said he would push for an interest rate hike in June or July while two others still saw up to three rate increases this year, leaving the door open to a change in monetary policy relatively soon. Burberry Group Plc dropped -2% after posting a seconf straight drop in annual earnings and announced plans to save £100 million a year. Kuka AG jumped +31% after Midea Group Co offered to raise its stake in the company. Sonova slumped -5.5% after missing its full year sales and profit targets.
US stocks retreated as investors boosted their bets on the Federal Reserve raising rates later this year. The Dow Jones Industrial Avearge (-1.02%), S&P 500 (-0.94%) and the Nasdaq Composite (-1.25%) all decreased. US consumer prices recorded their biggest increase in more than years in April as petrol and rents rose. The data pointed to a steady inflation build-up that could give the Fed ammunition to raise interest rates later this year. AbbVie fell – 3.5% after Coherus said the U.S. Patent and Trademark Office agreed to review its petition to make a copy of AbbVie’s top-selling treament. Coherus jumped +15.9%. Home Depot boosted its sales and profit forecasts for the year after a stronger-than-expected first quarter. But its shares, which have outperformed the consumer discretionary sector over the past year and last week touched an all-time high, dropped -2.5% and were among the biggest drags on the S&P 500 and the Dow.
Asian stocks fell as US reports bolstered the case for higher interest rates. The S&P/ASX 200 (-0.74%) and Hang Seng (-1.45%) and the Nikkei 225 (-0.05%) all retreated. Suzuki Motor Corp plunged -9.4% in Tokyo after saying it used an improper method to test the fuel efficiency of its vehicles. NTT Docomo Inc and KDDI Corp dropped at least -1.1% after Bloomberg News reported the government may take further steps to pressure them to offer cheaper plans. Asia Pacific Telecom Co surged +7.1% after the company’s chairman told the Taipei Times it planned to create a robotic services unit.
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.