European stocks fell after EgyptAir said a plane carrying more than 60 passengers and crew had gone missing over the Mediterranean. The ESTX 50 (-0.85%), CAC 40 (-0.61%), Dax (-1.28%) and the UK markets (-1.24%) all posted losses in early trading. Bayer AG tumbled -6.2% after Monsanto Co said it received an unsolicited takeover approach from the company. Technip SA jumped +12% after signing a memorandum of understanding with FMC Technologies for an all-stock merger to create a new company with an equity value of $13 billion. Thomas Cook Group Plc tumbled -16% after saying full year earnings will be at the lower end of analyst estimates, hurt by terror attacks in Brussels and unrest in Turkey. Credit Suisse Group AG and Deutsche Bank AG climbed more than +4%.
US stocks finished the session flat as the minutes from the Federal Reserve’s April meeting signalled a potential interest rate increase in the near term. The Dow Jones Industrial Average (-0.02%) and the S&P 500 (+0.02%) were pretty much unchanged, while the Nasdaq Composite (+0.50%) gained. Officials from the US central bank said it would be appropriate to raise interest rates in June if economic data points to stronger second quarter growth as well as firming inflation and employment. Financials, seen benefiting in a rising rate environment, were the best performing sector. JPMorgan gained +3.9% and Bank of America rose +4.9%. Target Corp fell -7.6% as it quarterly sales missed expectations.
Asian stocks fell following the release of minutes from the Federal Reserve’s April meeting. The S&P/ASX 200 (-0.61%) and the Hang Seng (-0.67%) both declined, while the Nikkei 225 (+0.01%) was flat. Insurers gained in Tokyo on the outlook for higher investment returns from an increase in interest rates, sending Dai-Ichi Life Insurance Co +2.8% higher. Suzuki Motor Corp jumped +3.5% after elaborating that its improper testing methods would not result in changes to the fuel efficiency ratings of its vehicles. Inpex Corp fell -5.9% and JX Holdings Inc dropped -2.8% as the threat of a stronger dollar sent oil futures tumbling.
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.