European stocks retreated this morning following US and Asian equities lower amid concerns over global growth after a measure of Chinese manufacturing tumbled to a six year low. The ESTX 50 (-0.35%), UK markets (-0.42%), CAC 40 (-0.51%) and the Dax (-0.32%) all posted losses in early trading. Technology stocks sensitive to China were among the worst performers. Dialog Semiconductor Plc and ARM Holdings Plc led the drop, falling at least -2.7%. Novartis AG fell -1.3% after agreeing to buy the rights to an experimental drug from GlaxoSmithKline Plc for as much as $1 billion. Royal Vopak NV plunged a record -15% after posting second quarter earnings that missed forecasts.
US stocks tumbled on Thursday on concern a decelerating Chinese economy will translate into slower global growth. The Dow Jones Industrial Average (-2.06%), S&P 500 (-2.11%) and the Nasdaq Composite (-2.82%) all dropped. Disney slumped -6% and Time Warner fell -5%, leading a rout in media stocks after a Bernstein downgrade that cited a massive structural upheaval in the industry. Disney shares have fallen -17.8% since the company reported earnings earlier this month. Apple fell -2.1% after a Gartner report said China smartphone sales fell in the second quarter for the first time ever on a quarterly basis. Apple counts China as key growth market. NetApp gained +3.4% after reporting results that beat expectations.
Asian stocks dropped as a rout in global equities deepened and the weakest Chinese manufacturing data since the financial crisis added to concerns about the world economy. The Nikkei 225 (-2.98%), Hang Seng (-1.53%) and the S&P/ASX 200 (-1.40%) all retreated. Cheung Kong Property Holdings Ltd tumbled -3.6%. Tencent Holdings Ltd fell -3.4% and China Construction Bank Corp slid -2.2%, giving the most impetus to the Hang Seng’s decline. The financial sector led the decline in Japan, with Mitsubishi UFJ FG dropping -4.1%. Shares in Japanese exporters were also hard it as the yen strengthened against the dollar, with Bridgestone losing -3.2% and Toyota shares falling -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.