European shares rose this morning, tracking gains on Wall Street and Asia, with some investors still eyeing a positive outcome in Greece even after it became the first advanced economy to default on a loan with the IMF. The ESTX 50 (+0.79%), UK markets (+0.54%), CAC 40 (+0.87%) and the Dax (+0.69%) all posted gains in early trading. European finance ministers will confer today over Greek Prime Minister Alexis Tsipras’ request for a new two year loan to pay debts that amount to nearly €30 billion. French finance minister Michel Sapin said France would still try to reach a goal with Greece before the Sunday referendum. Airbus shares rose +2.6% after China placed a landmark order for dozens of wide-body jets from Airbus in a multi-billion-dollar deal that paves the way for a second European aircraft plant in the world’s fastest growing aviation market. Tullow Oil Plc advanced +4.2% after it raised this year’s production forecast following a strong performance from the company’s largest field in Ghana.
US stocks rose as investors held out hope on Tuesday for a deal on Tuesday to keep Greece in the euro even as it veered close to a potential debt default. The Dow Jones Industrial Average (+0.13%), S&P 500 (+0.27%) and the Nasdaq Composite (+0.57%) all increased. US corporations have limited exposure to Greece, but investors are concerned about the fallout across Europe if the country exits the euro zone. Volatility picked up on Tuesday also due to the expiration of quarterly options. The expiry of weekly options is a day early due to US Independence Day holiday observance on Friday. Insurance broker and risk-advisory firm Willis Group Holdings and professional-services group Towers Watson said they had agreed to an all-stock merger valuing the combined company at $18 billion. Willis’s shares climbed +3.3%, while Towers Watson fell -8.8%.
Asian shares gained as investors gave a resigned shrug to news Greece had become the first developed economy to default on a loan with the International Monetary Fund. The Nikkei 225 (+0.46%), Hang Seng (+1.09%) and the S&P/ASX 200 (+1.04%) all increased. Shiseido Co soared +7.3% after saying it will sell a subsidiary. Lawson Inc jumped +2.4% on a report its quarterly profit is expected to rise. Suzuki Motor Corp slumped -3.4%, reversing Tuesday’s rally, after a change of management. Citic Securities Co led declines for Chinese financial companies, slumping -5.7%. Haitong Securities Co dropped -5.3%. Industrial & Commercial Bank of China Ltd fell -2.7%, while China Life Insurance Co dropped -5.3%.
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.