European shares rallied this morning after some positive manufacturing reports from the region, while Volkswagen continued its slide following allegations of rigging emission tests. The ESTX 50 (+0.35%), UK markets (+0.66%), CAC 40 (+0.27%) and the Dax (+0.36%) all posted gains in early trading. Volkswagen shares fell nearly -7%, after plummeting -18.6% on Monday and 19.8% on Tuesday, after the company said the scandal could affect 11 million of its cars around the globe as investigations of its diesel models multiplied. PSA Peugeot Citroen and Renault SA both fell more than -4%. Coloplast fell -6.7% after saying it will take further provision of 3 billion Danish crowns to cover potential settlements and costs in relation to litigation in the United States. Premier Oil jumped +12% after saying that production is ahead of its 2015 guidance. Glencore lost -2.2%.
US stocks dropped as a selloff in commodities dragged down materials companies. The Dow Jones Industrial Average (-1.09%), S&P 500 (-1.23%) and the Nasdaq Composite (-1.50%) all retreated. Lingering worries about slower growth in China pushed commodities to two week lows, with copper prices and industrial metals leading losses. S&P materials sector dropped -1.8% and led the decline for the S&P 500. Newmont Mining was down -6.3%. News that Volkswagen admitted to cheating on vehicle emission tests sparked a global selloff in auto stocks. Shares of Volkswagen suppliers BorgWarner and Delphi Automotive had among the biggest drops, with BorgWarner shares down -7.6%, the S&P 500’s biggest percentage decliner, while Delphi lost -3.6%. Ford dropped -2.8%.
Asian stocks retreated after factory activity in China shrank more than expected, adding to fears of a weakening global economy and sending investors into safer assets such as government bonds. The Nikkei 225 (-1.96%), Hang Seng (-2.25%) and the S&P/ASX 200 (-2.07%) all decreased. Activity in China’s factory sector failed to improve in September as expected, and instead shrank for a seventh straight month to its weakest level in over 6 years. The findings could add to fears that China’s economy is cooling more sharply than earlier expected, though most analysts still believe a gradual albeit bumpy slowdown is more likely. The Asian Development Bank lowered its growth forecast for China to 6.8% for 2015. Baoshan Iron & Steel Co Ltd fell over -3% on fears that economic cooling would weaken demand for the metal. CITIC Securities tumbled -4%.
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.