European stocks fell following Janet Yellen’s comments yesterday regarding the end of bond purchasing by the Federal Reserve. The ESTX 50 (-0.56%), UK Markets (-0.71%), CAC 40 (-0.58%) and the DAX (-0.64%) all posted losses in early trading. GlaxoSmithKline Plc lost -1% after saying its experimental lung cancer drug failed to meet its objectives in a clinical study. Munich Re rose +1.2% after announcing a share buyback. Babcock International Group Plc retreated -1.4% as Citigroup Inc lowered its rating on the stock. Next Plc added +1.4% after reporting annual profit that beat analysts’ estimates.
US stocks fell after Janet Yellen said the central bank’s stimulus program could end this autumn and benchmark interest rates could rise six months later. The Dow Jones Industrial Average (-0.70%), S&P 500 (-0.61%) and the NASDAQ Composite (-0.59%) all declined. Newmont Mining slid -3% after gold for immediate delivery slumped -1.9% as the Fed predictions for higher interest rates next year curbed demand for the metal as a store of value. All 30 utilities in the S&P 500 retreated as Treasury 10-year yields jumped 10 basis points to 2.77%, competing with dividend yields offered by utilities. Con Ed dropped -3.2% and Duke Energy Corp fell -2.2%. SolarCity Corp dropped -5.7% despite posting fourth quarter net income of $26.7 million. The profit came largely from an acquisition related tax benefit. Walt Disney Co, General Electric Co and Boeing Co all lost at least 1.4% for the biggest losses in the Dow.
Asian stocks fell after the Federal Reserve signalled it may raise US interest rates from the middle of next year. The Nikkei 225 (-1.65%), Hang Seng (-1.79%) and the S&P/ASX 200 (-1.15%) all retreated. Newcrest Mining Ltd slumped -7.9% after bullion dropped the most in three months as the Fed’s announcement curbed demand for havens. Zijin Mining Group Co slipped -2.4% in Hong Kong. China Mobile Ltd dropped -3.6% after posting profit that missed estimates. BYD Co tumbled -14% in Hong Kong after projecting lower than expected first quarter profit. Myer Holdings Ltd fell -5.3% in Sydney after saying second half gross operating profit margin will be flat compared to a year earlier. Tencent Holdings Ltd fell -1.7% after posting fourth quarter profit that missed analyst estimates and proposed a 5-1 share split to boost holdings by individuals.
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.