European shares climbed after the Federal Reserve held off raising borrowing costs. The ESTX 50 (+1.14%), CAC 40 (+1.13%), Dax (+1.21%) and the UK markets (+0.58%) all posted gains in early trading. Commodity and energy producers climbed the most with oil rising following a drop in US stockpiles. Rio Tinto Group and BHP Billiton Ltd were up more than +3.4%. Fingerprint Cards AB advanced +3.8% after a report that a Chinese company approached it this summer about a potential merger. EDF fell -2.4% after saying it was cutting it 2016 earnings expectations due to lower output. Banco BPI rose +3.8% after Caixabank launched a bid for the bank and slightly raised its offer price. Caixabank shares were down -2.4%.
US stocks advanced after the US Federal Reserve kept interest rates unchanged, for now leaving intact the low rate environment that has helped underpin the bull market. The Dow Jones Industrial Average (+0.90%), S&P 500 (+1.09%) and the Nasdaq Composite (+1.03%) all increased. Concerns over whether the Fed would raise rates prompted a return of volatility to the stock market in recent weeks after two months of calm. The Fed has held its target rate for overnight lending between banks in a range of 0.25% to 0.50% since December. FedEx gained +6.9% after reporting a profit. Microsoft Corp added +1.67% after saying it would increase its quarterly dividend by 8% over the previous quarter, and it approved a share buyback program of up to $40 billion.
Asian stocks rose after the Federal Reserve kept US interest rates steady and scaled back expectations for increases in 2017 and the Bank of Japan overhauled its monetary policy, potentially easing pressure on banks and insurers. The S&P/ASX 200 (+0.65%), Hang Seng (+0.38%) and the Nikkei 225 (+1.91%) all advanced. Sinopec, China Shenhua Energy Co and China Petroleum & Chemical Corp all rallied at least +2% as higher crude prices boosted energy producers. Cheung Kong Property Holdings Ltd and Hang Lung Properties Ltd added +1.9% each as bets the Fed will be slow to raise interest rates has helped Hong Kong home prices rebound this quarter. Mitsubishi UFJ Financial Group Inc jumped +7% and Mizuho Financial Group rose +7%. Dai-ichi Life Insurance Co ltd jumped +10.1%.
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.