European stocks rallied after the Federal Reserve’s decision to slow the pace on its bond purchases boosted investor confidence in the US economic recovery. The ESTX 50 (+1.57%), UK Markets (+0.94%), CAC 40 (+1.40%) and the DAX (+1.40%) all posted gains this morning. Saab surged +23% after winning a $4.5 billion contract to supply 36 jet fighters to Brazil. Amadeus IT Holding SA rose +1.5% after saying its $500 million purchase of NMTI Holdings Inc will boost profit and sales for 2013. Algeta advanced +1.6% after Bayer AG said it will buy the company for about 17.6 billion kroner, a price that topped a preliminary offer. WPP Plc climbed +2.1% after agreeing to buy a majority stake in ClickMedia, a Vietnam based social media marketing agency for companies including Unilever and Estee Lauder. Prudential added +2.4% as insurers rallied
US stocks rose after the Federal Reserve said it will reduce the pace of its monthly bond purchases and expressed confidence in the labour market recovery. The Dow Jones Industrial Average (+1.84%), S&P 500 (+1.66%) and the NASDAQ Composite (+1.15%) rallied. The Fed’s low interest rates have prompted consumers to buy homes or refinance existing mortgages, sparking a recovery in the housing market. Data showed builders broke more ground on more homes in November than at any time in over five years as growing demand helped the industry overcome rising US mortgage rates. Lennar Corp climbed +6.3% after reporting quarterly earnings that topped estimates as it sold more homes and increased profits. CVS Caremark Corp rose +4.3% after boosting its dividend by 22% and approved a share buyback for as much as $6 billion. Gilead Sciences Inc jumped +5% after saying it plans to file a new drug application for a hepatitis C virus treatment in the first quarter after three phase 3 studies. Ford Motor Co declined -6.3% after reducing its pre-tax profit forecast for 2014, due to the cost of bringing new vehicles to market.
Asian stocks rose after the Federal Reserve expressed enough confidence in the US labour market to taper asset purchases while promising to hold interest rates close to zero. Shares in China and Hong Kong fell on concern higher funding costs will hurt growth. The Nikkei 225 (+1.74%) and the S&P/ASX 200 (+2.08%) both advanced, while the Hang Seng (-1.10%) declined. Fast Retailing Co climbed +4.5% after the yen touched a five year low to the dollar overnight. Fanuc Corp rose +4.1% to a record in Tokyo. Caltex Australia Ltd surged +13% after saying profit may climb to $301 million. Hang Lung Properties, a developer that invests in mainland malls, fell -4.6%. Fu Shou Yuan International Group Ltd jumped +45% in the funeral company’s Hong Kong trading debut.
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.