European shares retreated as investors awaited testimony by Janet Yellen and Greece’s creditors scrutinise a set of its economic measures. The ESTX 50 (-0.22%), UK markets (-0.02%), CAC 40 (-0.34%) and the Dax (-0.26%) all posted losses in early trading. Finmeccanica SpA gained +4.3% after Hitachi Ltd agreed to buy the company for about €809 million. Credit Agricole SA declined -1.3% after saying its CFO is leaving. Drax Group Plc lost -3.6% after forecasting capital investment of about £150 million this year. Telefonica Deutschland rose more than +7% after revealing expectations of more than €250 million in savings for 2015.
US stocks declined as lower oil prices dragged down energy shares. The Dow Jones Industrial Average (-0.13%) and the S&P 500 (-0.03%) all declined, while the Nasdaq Composite (+0.10%) increased. Oil prices fell, with WTI crude off -2.7% at $49.45 a barrel on oversupply concerns and a stronger dollar. Insurers gained after the government proposed to make only a small cut in payments to Medicare plans, a reversal from the much larger cuts in recent years. Humana were up +5.4%, while United Health Group Inc gained +3.4%. Boeing fell -2.3%, the biggest drag on the Dow, after Goldman Sachs cut its rating to “sell” from “neutral”. Canada’s Valeant Pharmaceuticals International Inc agreed to acquire Salix Pharmaceuticals Ltd in an all cash deal valued at about $10.1 billion. US listed shares of Valeant gained +14.7% while Salix slipped -1.3%.
Asian shares were higher as the Nikkei rose to another 15 year peak. The Nikkei 225 (+0.74%) and the S&P/ASX 200 (+0.32%) both increased, while the Hang Seng (-0.35%) decreased. BHP Billiton Ltd climbed +2.9% in Sydney after reporting earnings that beat analyst expectations and increasing its dividend. Taiwan Semiconductor rallied +1.7% to a record in Taipei. HSBC fell -3.5% after reporting fourth quarter profit that was lower than analyst estimates as costs and conduct provisions rose. China Oilfield Services Ltd lost -3% and Air China Ltd jumped +4.9% after crude oil retreated. Galaxy Entertainment Group Ltd lost -2.7% after a senior Macau official said the city wants to study restrictions on mainland Chinese tourists to ease overcrowding.
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.