European shares rose this morning after a sharp sell-off yesterday saw around €450 billion wiped off the value of leading stocks. The ESTX 50 (+3.62%), UK markets (+2.32%), CAC 40 (+3.59%) and the Dax (+3.21%) all posted gains in early trading. Syngenta AG jumped +8.6% after it was reported that Monsanto Co has made an increased takeover offer for the company. RSA Insurance Group Plc climbed +4.7% after Zurich Insurance Group AG proposed to buy it. BHP Billiton Ltd rallied +5.4% after saying it will increase its dividend, even with commodities near their lowest levels since 1999. Royal DSM NV added +3.1% after announcing that it will cut jobs. Randgold Resources Ltd lost -2.1% as gold fell.
US stocks plunged as investors concerned about China’s economy, sold heavily in an unusually volatile session that confirmed the S&P 500 was formally in a correction. The Dow Jones Industrial Average (-3.57%), S&P 500 (-3.94%) and the Nasdaq Composite (-3.82%) all retreated. It was the S&P 500’s worst day since 2011 and followed an -8.5% slump in Chinese markets, which sparked a sell-off in global stocks along with oil and other commodities. Exxon and Chevron each fell more than -4.7%. US oil and gas companies have already lost about $310 billion of market value so far this year. Alibaba lost -3.49% to $65.80, below its IPO price of $68, making it the second high profile tech company to fall below its IPO in the past week after twitter.
Asian stocks rose, reversing losses to rebound from their lowest levels in two years, as banks in Japan and Australia rallied and technology companies advanced. The Hang Seng (+0.67%) and the S&P/ASX 200 (+2.72%) both increased, while the Nikkei 225 (-3.96%) dropped. Japanese steel makers suffered heavy losses as the Topix steel subindex shed -4.6%. Commodity stocks and trading houses linked to them also suffered sharp declines with JFE Holdings losing -5.1%. In China, 17% of listed mainland shares were halted from trading. About 40% have been suspended during the depths of last month’s rout. Industrial & Commercial Bank of China Ltd fell -5.1% and Agricultural Bank of China Ltd dropped -9%. Futures on the CSI 300 sank by the 10% daily limit.
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.