European stocks fell this morning, extending the losses recent weeks after weak manufacturing data from China again raised concerns over the health of its economy. The ESTX 50 (-2.71%), UK markets (-2.64%), CAC 40 (-2.62%) and the Dax (-2.79%) all posted losses in early trading. Bwin.party Digital Entertainment Plc dropped -1.5% after its takeover battle took another twist with a revised proposal from 888 Holdings Plc. BP Plc declined -1% as oil’s biggest three day rally in 25 years stalled before US government data forecast to show crude stockpiles expanded. British American Tobacco Plc fell -2% and weighed heaviest on the UK equity index. AstraZeneca Plc and GlaxoSmithKline Plc were also a drag, with both losing at least -2%. Shire Plc posted the biggest drop, falling -3.1%.
US stocks declined after comments from a senior Federal Reserve official heightened fears among investors of a potential US interest hike in September. The Dow Jones Industrial Average (-0.69%), S&P 500 (-0.84%) and the Nasdaq Composite (-1.07%) all dropped. Fed Vice Chairman Stanley Fischer said US inflation would likely rebound as pressure from the dollar fades, allowing the Fed to raise interest rates gradually. Many analysts took Fischer’s comments as a sign the Fed would raise rates in September, instead of December. That shook investors who were already jumpy after weeks of turbulence caused by concerns over China. Celgene fell -4.8% and weighed most on the S&P 500. Phillips 66 rose +2.38% after Warren Buffett’s Berkshire Hathaway disclosed a $4.48 billion stake in the oil refiner.
Asian stocks fell as a contraction in Chinese manufacturing reinforced investor concerns about the speed of a slowdown in world’s second biggest economy. The Nikkei 225 (-3.84%), Hang Seng (-2.24%) and the S&P/ASX 200 (-2.12%) all retreated. Toshiba Corp slumped -5.3% in Tokyo, bringing this year’s losses to 29%, after saying it found new accounting problems related to a US unit’s construction project. Technology and consumer discretionary companies in China suffered the biggest declines. Yonyou Network Technology Co retreated +6.8%. Shanghai Wangsu Science & Technology Co lost -5.6%. Suning Commerce Group Co dropped -10%. Chinese banks gained, ICBC advanced +7.4% and China Construction Bank Corp jumped +8.7%. PetroChina advanced +3%, as the price of oil rallied.
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.