European markets declined this morning, tracking losses on Wall Street and Asia, with a firmer dollar impacting commodity prices while hawkish comments from another Fed official put pressure on the market. The ESTX 50 (-1.27%), CAC 40 (-1.44%), Dax (-1.08%) and the UK markets (-1.15%) all posted losses in early trading. Anglo American Plc, Glencore, Rio Tinto, Fresnillo and ArcelorMittal all dropped between -3.9% and 7%. Next Plc fell -7.4% after posting a 5% rise in annual profit but cautioned 2016 could be the toughest year it has faced since 2008 as it anticipates a more difficult economic environment.
US stocks declined as oil and materials share prices dropped while investors remained cautious. The Dow Jones Industrial Average (-0.45%), S&P 500 (-0.64%) and the Nasdaq Composite (-1.09%) all decreased. US stocks fading five week rally was further diminished by comments over the past two days by Federal Reserve officials, who expressed views that suggested an appetite for more US interest rate hikes than investors had anticipated. Nike dropped -3.8% after reporting quarterly revenue below estimates. Gilead Sciences was down -3.9% while Merck gained +0.1% after a federal jury upheld the validity of two Merck patents in a high profile dispute over Gilead’s cure for hepatitis C. Vertex Pharmaceuticals fell -7.6% after Goldman Sachs cut its price target.
Asian stocks fell as oil tumbled below $40 a barrel and investors considered the direction of US monetary policy. The S&P/ASX 200 (-1.13%), Hang Seng (-1.31%) and the Nikkei 225 (-0.64%) all retreated. Mitsui & Co tumbled -7.5% after booking more than $2 billion in impairment charges and forecast its first net loss in its modern history. Mitsubishi Corp fell -4.1% after saying it expects to book an impairment charge of $3.8 billion on its commodities business and also forecast a net loss for the year. Inpex Corp dropped -5% in Tokyo, pacing losses among energy producers as crude oil futures extended declines.
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.