European stocks fell as China’s finance minister damped speculation his government will boost economic stimulus. The ESTX 50 (-0.10%), UK markets (-0.63%), CAC 40 (-0.08%) and the Dax (-0.18%) all posted losses in early trading. Tesco sank -9.9% after saying it overstated its guidance for first half earnings by about £250 million. Wm Morrison Supermarkets Plc and J Sainsbury Plc each lost more than -2%. The company had said operating profit for the period would be £1.1 billion. Siemens AG dropped -0.6% after agreeing to buy Dresser-Rand Group Inc for $7.6 billion. Cermaq surged +16% after Mitsubishi offered to buy the Norwegian fishing company for 8.88 billion kroner. The offer price is 14% higher than Cermaq’s closing price on September 19th. Glencore Plc slipped -2.9% and BHP Billiton Ltd declined -2.3% following the Chinese Finance Ministers comments that China’s economy faces some downward pressure.
US stocks were little changed as shares of Alibaba Group Holding Ltd began trading and corporate takeovers boosted investor optimism. The Dow Jones Industrial Average (+0.08%) increased, while the S&P 500 (-0.05%) and the Nasdaq Composite (-0.30%) both declined. Alibaba rose +38% in its US trading debut, after the company raised a record breaking $21.8 billion. The e-commerce company, which started in 1999 with $60,000 by founder Jack Ma, is now valued at $231 billion. Making it larger than Amazon.com Inc and EBay Inc combined, and more valuable than all but 9 companies in the S&P 500. Yahoo! Inc, which owns a stake in Alibaba, slipped -2.7%. Dresser-Rand Group Inc rallied +9.4% as Siemens AG prepared to offer more than $6.5 billion for the company. Oracle Corp slid -4.2% after Larry Ellison stepped down as CEO.
Asian shares declined as investors awaited data this week that could provide evidence of a slowdown in China. The Nikkei 225 (-0.71%), Hang Seng (-1.44%) and the S&P/ASX 200 (-1.29%) all retreated. SoftBank dropped -6.1% after Alibaba Group Holding Ltd’s initial public offering reduced the allure of the Japanese company as a proxy for the Chinese e-commerce company. China Galaxy Securities Co slumped -5.5% after saying its fixed income chief and two other employees are cooperating with the nation’s judicial authority. Kawasaki Kisen Kaisha Ltd sank -2.8%. Inpex Corp jumped +2.4%. Japan Airlines Co advanced +1.2%.
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.