European shares reversed early losses this morning as potential merger and acquisition activity boosted chemical companies, outweighing declines in miners and energy companies. The ESTX 50 (+0.66%), CAC 40 (+0.19%), Dax (+1.07%) and the UK markets (+0.24%) all posted gains in early trading. Bayer rose +2% after people familiar with the matter told Reuters that Monsanto had approached Bayer to express interest in its crop unit, including a potential acquisition worth more than $30 billion. Telecom Italia SpA climbed +3.6% after saying that CEO Marco Patuano is discussing the terms of his resignation. Gas Natural SDG SA added +2.7% after changing its dividend proposal and increasing its payout ratio.
US stocks rose after the US Federal Reserve’s dovish tone a strengthening economic outlook compelled investors to take on more risk. The Dow Jones Industrial Average (+0.69%), S&P 500 (+0.44%) and the Nasdaq Composite (+0.43%) all increased. Crude oil dipped on Friday as traders booked profits after strong seasonal demand and the US oil rig count rose for the first time since December. Bank of America and JPMorgan each climbed about +2.9% after the companies announced share buyback programs, giving the biggest boost to the S&P 500. Adobe rose +3.8% after raising its full year profit and revenue forecasts above expectations. Starwood Hotels & Resorts jumped +5.8% after receiving what it deemed a superior takeover offer from China’s Anbang Insurance Group and said it planned to end a deal with Marriott.
Asian stocks fell as commodity producers slipped after crude oil prices dropped. The S&P/ASX 200 (-0.32%) and Nikkei 225 (-1.25%) both declined, while the Hang Seng (+0.06%) was slightly positive. Everbright Securities Co was among brokerages that jumped by the 10% daily limit after China Securities Finance Corp said it will restart offering loans to securities firms for periods ranging from 7 days to 182 days. The state backed agency, which provides funding to brokerages for margin trading, will cut interest rates on the debt to as low as 3%, it said in a statement on Friday. Citic Securities jumped +8.9%.
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.