European shares rose as a drop in the euro helped boost stocks as investors assessed the implications of a possible Federal Reserve interest rate increase as early as June. The ESTX 50 (+1.01%), CAC 40 (+1.04%), Dax (+0.74%) and the UK markets (+0.49%) all posted gains in early trading. Kingfisher Plc rose +1.9% after it reported better than expected quarterly sales at its businesses in the UK and France. SEB SA rallied +11% after agreeing to buy WMF for about €1.6 billion. Galenica AG dropped -6.4% after saying it will split into separate companies by the end of 2017. Evonik Industries AG slid -4.7% after a shareholder began selling a 4.2% stake in the company.
US stocks declined as a bounce in Apple failed to offset concerns that the US Federal Reserve could raise interest rates sooner than later. The Dow Jones Industrial Average (-0.05%), S&P 500 (-0.21%) and the Nasdaq Composite (-0.08%) all retreated. The timing of future Fed rate hikes in the face of a sluggish economy is a major focus among investors who have benefitted from historically low borrowing costs since the 2008 financial crisis. Apple rose +1.27% after Taiwan’s Economic Daily News reported that Apple asked suppliers to build more of its next generation iPhones than previously expected. Monsanto jumped +4.41% after receiving a $62 billion takeover offer from Bayer. Microsoft was down -1.4%.
Asian stocks fell as a stronger yen weighed on Japanese exporters and speculation the US is closer to raising interest rates. The S&P/ASX 200 (-0.44%) and the Nikkei 225 (-0.94%) both declined, while the Hang Seng (+0.11%) increased. Toyota Motor Corp slumped -1.4% and Hitachi Ltd declined -2.4%. With Japanese equities closely tied to swings in the yen, investors considered comments from Finance Minister Taro Aso, who said the government has no intention of further lowering the currency to boost competitiveness and absolutely no intention of devaluing the yen in a sustained manner. Toshiba Corp fell -3.5%. Inpex Corp sank -1.8%.
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.