European shares were lower this morning, dragged down by a steep fall in commodities and energy stocks on demand fears. The ESTX 50 (+0.51%), UK markets (-0.55%), CAC 40 (-0.94%) and the Dax (-0.47%) all posted losses in early trading. Mining stocks were the top sectoral faller with a drop of more than 2% as metal prices fell to multi year lows on worries about China demand. Energy shares were also lower, weighed down by a drop in crude prices. Copper fell through $4,500 a metric ton for the first time since 2009, dipping 2.1% to $4,486 a ton on the LME. Nickel plunged 5.7% to the lowest since 2003. Anglo American Plc dropped -4.3% and Glencore lost -2.47%. Wincor Nixdorf AG rose +4% after US rival Diebold Inc launched a $1.8 billion cash and share offer.
US stocks gained as healthcare, technology and consumer stocks advanced and investors looked beyond a widely expected December interest rate hike. The Dow Jones Industrial Average (+0.51%), S&P 500 (+0.38%) and the Nasdaq Composite (+0.62%) all rallied. The S&P 500 ended its strongest week in almost a year, while the Dow Jones erased its year to date loss, led by a 5.46% in Nike, which announced a $12 billion share buyback and a 2 for 1 share split. Allergan rose +3.45% on reports that the US Treasury’s new tax inversion rules were unlikely to thwart its proposed deal with Pfizer. Abercrombie & Fitch surged +25% after reporting that its quarterly profit more than doubled and same store sales fell less than expected. Sprint tumbled -5.43% after saying it would raise about $1.1 billion in cash through a sale and lease back deal with a company backed by Japan’s SoftBank.
Asian stocks were mixed amid low trading volumes as commodity producers tracked a slide in industrial metals and crude oil. The Nikkei 225 (+0.10%) and the S&P/ASX 200 (+0.39%) both increased, while the Hang Seng (-0.39%) decreased. As the chances rise of a Federal Reserve interest rate increase, the dollar is climbing, making commodities more expensive for buyers in other currencies. The London Metal Exchange index of six industrial metals has plummeted 27% this year, the worst annual performance since the global financial crisis in 2008. BHP Billiton declined -2.1% and Rio Tinto Ltd slipped -1% in Sydney. Guotai Junan International Holdings Ltd plunged -17% in Hong Kong after the brokerage said it can’t contact its Chairman. Woolworths Ltd climbed +3.9% after the Australian Financial Review reported private equity firms are eyeing the retailer’s Big W unit.
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.