European shares fell in early trading following the US Federal Reserve’s decision to delay its next rate increase. The ESTX 50 (-0.55%), CAC 40 (-0.62%), Dax (-0.21%) and UK markets (-0.27%) all posted losses in early trading. Lundbeck slumped -16.6% after the company’s highly anticipated idalopirdine Alzheimer’s treatment failed in a late stage study. Polymetal International Plc dropped -8.1% after two investors said they’ll sell 13 million shares of the company. CaixaBank SA lost -2.8% after selling shares to fund its takeover of Portugal’s Banco BPI SA. Scout24 AG dropped -4.1% after Blackstone Group LP sold shares of the company. Sports Direct International Plc gained +2.4% after saying founder Mike Ashley will take over as CEO. Persimmon Plc and Bellway Plc gained more than +3%, after Liberum upgraded the sector’s price estimates.
US stocks climbed, building on strength from the previous session which was fuelled by the Federal Reserve’s decision keep interest rates as they are. The Dow Jones Industrial Average (+0.54%), S&P 500 (+0.65%) and the Nasdaq Composite (+0.84%) all increased. The Fed strongly signalled it could still tighten monetary policy by year end, and as of yesterday afternoon the probability of a hike at the Fed’s December meeting was 58%, according to the CME Group’s FedWatch website. Adding some support for the Fed to raise rates later this year, a report showed the number of Americans filing for unemployment benefits unexpectedly fell to a two month low. Amazon.com rose +1.9% to close above $800 for the first time following a price target raise by BMO. Apple gained +0.9% after positive analyst reports.
Asian stocks fell as Japanese exporters declined with the yen trading near a one month high after the Bank of Japan didn’t move deeper into negative interest rate territory. The S&P/ASX 200 (+1.06%) rose, but the Hang Seng (-0.31%) and the Nikkei 225 (-0.32%) both retreated. Bank of Japan Governor Haruhiko Kuroda told reporters after the policy meeting that if the yield curve is too flat, it could hurt sentiment due to worries about the financial sector. Mitsubishi UFJ Financial Group Inc jumped +7.5% and Mizuho Financial Group rose +7%. China Unicom Hong Kong Ltd jumped +4.5% after Goldman Sachs raised its recommendation on the stock from “neutral”, citing the company’s expanding base of 4G subscribers. ICBC dropped -2.6% and China Galaxy Securities lost -1.6%
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.