European stocks gained after China’s central bank resumed its easing cycle, injecting an estimated $100 billion of long term cash into the economy and cutting the reserve requirement ratio for commercial banks by 50 basis points. The ESTX 50 (+0.62%), UK markets (+0.30%), CAC 40 (+0.39%) and the Dax (+1.26%) all posted gains in early trading. Barclays fell -7% after reporting a 2% fall in full year pre-tax profit. London Stock Exchange Group, which last week received a merger offer from Deutsche Boerse Ag, surged +8% after Intercontinental Exchange confirmed a possible counterbid. Anglo American, Rio Tinto and BHP Billiton all rose between +2.7% and 4.7%.
US stocks declined as worries about China persisted after the Chinese currency edged lower and the central bank cut its reserve requirements to free up funds for banks to make loans. The Dow Jones Industrial Average (-0.74%), S&P 500 (-0.81%) and the Nasdaq Composite (-0.71%) all decreased. Endo International slumped -21% after the company’s revenue forecast missed estimates. Valeant tumbled -18.41% after saying its chief executive would return from medical leave and it delayed the release of its quarterly results. Icahn Enterprises rose +3.68% after the activist investor offered to buy the rest of Federal Mogul. Federal Mogul soared +45.78.
Asian stocks rose, boosted by China’s monetary easing and downbeat manufacturing and service surveys that raised hopes of additional stimulus measures. The Hang Seng (+1.55%), Nikkei 225 (+0.37%) and the S&P/ASX 200 (+0.85%) all increased. China’s rate cut was a mixed bag for Japanese companies that rely on China for large parts of business. Komatsu Ltd dropped -1.3%, while Pigeon Corp gained +1%. JFE Container, a company that gets almost a third of sales from the Greater China region, lost -2.3%. NEC Corp sank -11% after cutting its full year sales and operating profit forecasts, citing delays in public projects and lower spending on telecom equipment.
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.