European shares fell after a gauge of China manufacturing dropped more than forecast and minutes from the Federal Reserve’s last meeting indicated the US may reduce stimulus in the coming months. The ESTX 50 (-0.75%), UK Markets (-0.15%), CAC 40 (-0.99%) and the DAX (-0.64%) all posted losses in early trading. Zurich Insurance Group AG slid -0.9% after selling its entire stake in New China Life Insurance Co for $943 million. Swiss Re lost -0.4% after agreeing to buy more than half of the stock. Johnson Matthey Plc climbed +2.4% after reporting a profit increase. SABMiller Plc rose +1.3% after it posted first half earnings that topped analysts’ estimates. Atos declined -4.7% after saying it sold 8.9 million shares. British American Tobacco Plc and Imperial Tobacco Group Plc both lost -1.5% after Philip Morris International Inc forecast 2014 profit growth below its long term target. Antofagasta Plc and Vedanta Resources Plc led miners lower as they both dropped more than -2%.
US stocks dropped after minutes from the Federal Reserve signalled the central bank may reduce bond purchases in the coming months. The Dow Jones Industrial Average (-0.41%), S&P 500 (-0.36%) and the NASDAQ Composite (-0.26%) all declined. J.C.Penney Co jumped +8.4% as its decline in sales abated in the third quarter. Yahoo! Inc advanced +2.9% after boosting its stock buyback plan by $5 billion. Deere & Co rose +2.1% as it forecast better than estimated annual earnings on rising demand for construction and forestry machinery. Lowe’s Cos slipped -6.2% after profit trailed analysts’ projections. Herbalife Ltd gained +6.5% after the CEO of Post Holdings Inc boosted his holding in Herbalife to 6.4% and said he’ll seek talks with the nutrition company. J.M.Smucker Co slid -6.5% for the biggest decline in the S&P 500 after cutting its sales forecast and saying price reductions are hurting margins.
Asian stocks outside Japan fell after minutes from the Federal Reserve’s last meeting signalled bond purchases may be reduced in coming months and a gauge of China manufacturing fell more than expected. The Nikkei 225 gained +1.92%, while the Hang Seng (-0.51%) and the S&P/ASX 200 (-0.36%) both retreated. Perseus Mining Ltd slumped -10% in Sydney after prices for gold fell amid concern tapering stimulus will erode demand for haven assets. Newcrest Mining Ltd declined -4% and Zijin Mining Group Co dropped -2.2%. Honda Motor Co, a company that gets more than 80% of its revenue abroad, rose 3.4% as the yen fell. Fanuc Corp, a company that gets 78% of its sales abroad, rose +1.8%. Australand Property Group fell -4% in Sydney after CapitaLand Ltd said it was selling part of its 59% stake in developer to raise as much as $403 million.
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.