European stocks rallied this morning as equities in the UK climbed amid a weakening pound. The ESTX 50 (+1.57%), UK markets (+1.16%), CAC 40 (+1.46%) and the Dax (+1.52%) all posted gains in early trading. Associated British Foods Plc added +1.5% after raising its annual profit outlook. HSBC Holdings Plc fell -3.9% after posting a quarterly loss, hurt by a decline in income from lending, higher loan impairment charges and fair value losses on its debt. UCB SA rose +1.4% after saying an experimental treatment it’s developing with Amgen Inc reduced frequency of new spinal fractures in post-menopausal women with osteoporosis.
US stocks were little changed as Applied Materials helped lift the tech sector and offset a renewed drop in oil prices. The Dow Jones Industrial Average (-0.13%) closed slightly down, while the S&P 500 (0.00%) was flat and the Nasdaq Composite (+0.38%) finished the session positive. Investors also digested data that showed rising rents and healthcare costs lifted underlying US inflation in January, a sign of a pick-up in prices pressures that could allow the Federal Reserve to gradually raise rates this year. Recent economic data related to industrial production and the labour market has encouraged investors about the strength of the US economy. Applied Materials jumped +7% after giving a strong profit and revenue forecast for the current quarter. Nordstrom dropped -6.7% after quarterly profit missed expectations. Deere & Co fell -4.1% after cutting its fiscal year sales and profit outlook. Caterpillar fell -1.1%
Asian shares rose as investors awaited several February industry surveys to take the pulse of the global economy. The Nikkei 225 (+0.90%), Hang Seng (+0.93%) and the S&P/ASX 200 (+0.98%) all advanced. Bank of East Asia Ltd jumped +9.2%, the most in more than six years, after a major shareholder increased his stake in the company. Energy companies suffered after crude dropped more than 3%, sending Inpex Corp down -4.8%. Airlines gained on prospects for lower fuel costs, with Japan Airlines Co rising +5.6%. Mitsubishi UFJ Financial Group Inc dropping -1.8% after announcing it would cut deposit and fixed term mortgage rates in the wake of the Bank of Japan’s adoption of negative interest rates.
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.