European stocks were positive this morning, ahead of the European Central Bank’s rate decision and comments by Mario Draghi. The ESTX 50 (+0.06%), UK markets (+0.06%), CAC 40 (+0.08%) and the Dax (+0.02%) were all slightly positive in early trading. Draghi will hold a press conference in Frankfurt, 45 minutes after the rate decision is announced. Pearson Plc climbed +5.2% after saying it plans to cut 4,000 jobs, or about 10% of the workforce. Logitech International SA rose +7% after raising its 2016 sales and profit forecasts. St James’s Place Plc added +1.2% after saying clients poured 20% more money into its funds. Deutsche Bank slid -5.8% after saying it will report a loss for the fourth quarter after setting aside more money for litigation and restructuring costs. Marine Harvest ASA fell -2.6% after saying quarterly profit declined.
US stocks dropped as oil prices plummeted to 2003 lows. The Dow Jones Industrial Average (-1.56%), S&P 500 (-1.17%) and the Nasdaq Composite (-0.12%) all decreased. The beaten down S&P energy sector fell -2.9%, leading losses. Exxon dropped -4.21% and Chevron slumped -3.1%. Collapsing oil prices and fears of a slowdown in China have led the S&P 500 to drop -9% this year. In the past six months the energy sector has fallen -26%. US crude sank -6.6% as a supply glut together with bearish financial reports that deepened worries over demand. IBM weighed most on the Dow, falling -4.88% after disappointing earnings report. Netflix ended down -0.41% despite better than expected growth in its subscriber base.
Asian stocks resumed their selloff as a rally in crude fizzled out and equities in China and Japan reversed early gains. The Nikkei 225 (-2.43%) and the Hang Seng (-1.82%) both declined, while the S&P/ASX 200 (+0.46%) gained. Policy makers are trying to hold borrowing costs down to support China’s economy without spurring an exodus of funds that drove the yuan to a five year low this month. Investors are looking for evidence stocks have hit a bottom, as some market indicators signal the equities selloff has gone too far. Toyota Motor Corp slipped -2.8%, pacing losses among Japanese exporters as the yen strengthened for a second day. Yaskawa Electric Corp dropped -8% after cutting its profit forecasts. China Resources Beer (Holdings) Co tumbled -14% after Macquarie Bank Ltd downgraded its rating on the company.
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.