European stocks climbed as investors assessed the impact of a partial shutdown of the US government. The ESTX 50 (+0.61%), CAC 40 (+0.73%) and the DAX
(+0.52%) all posted gains in early trading, while the UK markets top 100 stocks (-0.11%) declined. Wolseley Plc gained +2.7% after posting full year earnings that beat analysts’ estimates. Unilever NV slid -3.5% after saying sales growth slowed in the third quarter. SABMiller Plc declined -2.5% after a South African workers’ union said as many as 3,000 of its members may join a strike for higher wages. Rolls-Royce Holdings Plc rose +1.5% as Bank of America Corp said the company’s price is an attractive entry point. ThyssenKrupp AG added +1% after JPMorgan Chase & Co upgraded the country’s largest steelmaker. BMW rose +1.6% helping lead carmakers higher. Beiersdorf AG fell -1.6% as peer Unilever said third quarter sales growth slowed.
US stocks slid as a stalemate over the federal budget sent the government toward a shutdown. The Dow Jones Industrial Average (-0.84%), S&P 500 (-0.60%) and the NASDAQ Composite (-0.27%) all declined. Proctor & Gamble slipped -2.1%, the most in the Dow. Coca-Cola retreated -1.4% to pace declines among consumer staples. Devon Energy slid -1.6% and Tesoro retreated -1.7% as crude futures dropped -0.5% to the lowest level in almost three months. Apple Inc advanced +1.2% continuing its climb after reporting record sales of the latest models of the smartphone in their debut weekend. Johnson Controls Inc tumbled -2.4% after being cut to “underweight” from “overweight” by Morgan Stanley. J.C.Penney dropped -2.7% after plummeting 30% last week as it began a share offering to raise as much as $932 million and lowered its year end liquidity forecast. J.C.Penney, which hasn’t turned a quarterly profit since mid-2011 is down 55% for the year. Regeneron Pharmaceuticals Inc jumped +2.4% following positive trial data for Eylea as a treatment for diabetic macular edema.
Asian stocks rose after Japanese Prime Minister Shinzo Abe said the nation will raise its sales tax as planned. Gains were limited by the first partial US government shutdown in 17 years. The Nikkei 225 (+0.20%), while the Hang Seng (-1.50%) and the S&P/ASX 200 (-0.23%) both declined. Japan will raise its sales tax in April to 8% from 5%. US lawmakers passed a midnight deadline without reaching a compromise to keep funding the government. Both sides of US politics are also still in dispute over raising the nation’s $16.7 trillion debt ceiling. NSK Ltd jumped +3.3% after boosting its net-income forecast by 13%. Ube Industries Ltd soared +6% in Tokyo after Citigroup Inc said its profit forecast was within expectations. Kalbe Farma surged +7.6% regaining some of its losses, after plunging -9.2% yesterday.
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.