European stocks were mixed this morning, as UK listed banks gained after none failed the latest Bank of England stress tests on the sector. The ESTX 50 (-0.14%), CAC 40 (-0.32%) and the Dax (-0.17%) all posted losses in early trading, while the UK markets (+0.49%) gained. Standard Chartered, Lloyds Group, Bank of Scotland, HSBC and Barclays rose +1.4% to +2.7%, helping the European banking index gain more than 1%, after the BoE said major UK banks did not have to take any action. The BoE found capital ratios are not far from what’s needed in the longer term, potentially opening the way for higher dividends. TUI Group rose +3.3% after its largest shareholder increased his stake in the European travel and tourism group to 15.02% from about 13%. Linde fell -11% after cutting its 2017 profit target, citing slower industrial production growth weighing on its industrial gases unit.
US stocks retreated, led by declines in health and consumer shares, as investors braced for policy news from central banks. The Dow Jones Industrial Average (-0.44%), S&P 500 (-0.46%) and the Nasdaq Composite (-0.37%) all declined. The S&P health sector’s -1.3% fall led decliners, with biotech stocks down the most. Consumer staples were down -1%. Other US data expected this week includes November manufacturing and auto sales reports. Retail stocks were down following Black Friday, including Wal-Mart Stores Inc -1.8%, and Macy’s Inc -2.3%. Sales on Cyber Monday, the busiest day of the year for internet shopping, were up 14% from a year earlier, according to data. Staples fell -1.9% after the New York Post reported US antitrust regulators were preparing to block Staples’ acquisition of smaller rival Office Depot. Office Depot was down -2.4%.
Asian stocks rose following yesterday’s selloff as investors focused on the positives from Chinese data that showed manufacturing contracting to the lowest in three years. The Nikkei 225 (+1.34%), Hang Seng (+1.75%) and the S&P/ASX 200 (+1.93%) all rallied. Six interest rate cuts over the past year haven’t been enough to spur a recovery in Chinese manufacturing, which has continued to weaken, while activity in the services sector has shown more strength. Chinese property companies rallied the most in three months on speculation the government will boost stimulus, with Poly Real Estate Group Co jumping by the daily limit of 10%. Sosei Group Corp soared +17% after Pfizer Inc agreed to buy a 3% stake in the Tokyo based company.
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.