European stocks climbed after comments from the Federal Reserve indicated it won’t be in a rush to raise interest rates. The ESTX 50 (+0.16%), UK Markets (+0.40%) and the CAC 40 (+0.14%) all posted gains in early trading, while the Dax (0.00%) was flat. HeidelbergCement AG climbed +2% after cutting debt more than analysts expected, even without the added bonus of disposal proceeds. Gold miners were boosted by an advance in the price of gold following the Federal Reserve statement. The Fed’s cautious tone pushed down the price of the dollar on currency markets, which in turn boosted the comparative appeal of gold. Fresnillo rose +3.1% and was among the best performing UK stocks in percentage terms. Rival miner Randgold also rose +1.4%. Next fell -5.4% after the company’s cautious outlook took the shine off a 12.5% rise in annual profits.
US stocks rallied after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade. The Dow Jones Industrial Average (+1.27%), S&P 500 (+1.22%) and the Nasdaq Composite (+0.92%) all advanced. The Federal Reserve dropped its pledge to be “patient” in deciding when to begin raising rates, but it cut its interest rate projections over the next few years and downgraded its outlook for the US economy. Oracle rose +2.9% despite posting flat third quarter revenue and slightly lower profit. However, it raised its quarterly dividend 25% to 15 cents a share. A lock-up period in Alibaba shares expired yesterday, with a larger one expiring in September. The stock hit a high of $120 in November and closed yesterday at $84.59, about 24% about its IPO price. The shares were finished the session flat, just moving +0.1%.
Asian stocks rose after the Federal Reserve said data suggests US economic growth has moderated and officials indicated interest rates will rise at a slower pace than previously forecast. The Hang Seng (+1.45%) and the S&P/ASX 200 (+1.86%) both gained, while the Nikkei 225 (-0.35%) decreased. Nintendo Co continued to rise, surging +12% and jumping +36% over the past two days on its plans to develop game titles for mobile devices made by other companies. Myer Holdings Ltd slumped -10% as profit dropped. Honda Motor Co, which gets about 84% of its revenue abroad, declined -1% after the yen gained against the dollar. Aeon Financial Service Co dropped -4.7% after Credit Suisse Group AG cut its rating on the stock.
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.