European shares fell this morning, tracking similar declines in other markets due to persistent concerns over China’s economy. The ESTX 50 (-1.23%), CAC 40 (-1.17%), Dax (-1.23%) and the UK markets (-1.01%) all posted losses in early trading. Glencore Plc, Antofagasta Plc and Anglo American Plc retreated more than -3.5% as a gauge of UK mining shares dropped to its lowest level since 2009. Paddy Power Plc and Betfair Group Plc surged more than 16% after the betting companies agreed to merge. Vodafone Group Plc dropped -1.8% after agreeing to buy wireless spectrum rights from Qualcomm Inc. Transocean Ltd plunged -9.6% after saying it plans to halt investor payouts and book 2 billion Swiss francs in asset impairments after an oil price crash.
US stocks declined as concern about China’s economy outweighed lower valuations that some earlier saw as bargains. The Dow Jones Industrial Average (-1.29%), S&P 500 (-1.35%) and the Nasdaq Composite (-0.44%) all decreased. Earlier the S&P rose as much as +2.9%, the Dow as much as +2.8% and the Nasdaq as much as +3.6%. JPMorgan cut its year-end target for the S&P 500 to 2,150 from 2,250. Data on Tuesday showed US consumer confidence increased to a seven month high in August. New US single family home sales rebounded in July, adding to evidence of underlying strength in the economy that could allow the Federal Reserve to raise interest rates this year. Pepco Holdings Inc fell -16.47% after a district of Columbia regulator denied Exelon Corp’s $6.8 billion bid for the power utility, possibly delivering a knockout blow to the deal. Best Buy jumped +12.57% after reporting an unexpected increase in quarterly sales.
Asian were mixed as investors feared fresh rate cuts in China would not be enough to stabilise its slowing economy or end a collapse of Chinese stocks that is impacting global markets, yet Japanese stocks rebounded as bargain hunters snapped up major stocks such as banks and exporters. The Nikkei 225 (+3.20%) and the S&P/ASX 200 (+0.69%) both rallied, but the Hang Seng (-0.89%) retreated. Kyushu Electric Power Co jumped +5.2% after saying it will boost output at a nuclear reactor it restarted this month. Fuji Heavy Industries Ltd rallied +6.8% as Credit Suisse Group AG said recent selling was overdone. TDK Corp, was the biggest gainer on Nikkei 225, soaring +10% to recoup two thirds of its losses from the previous three sessions. Hundsun Technologies Inc tumbled -10%. China Construction Bank Corp rallied +5.2% and Bank of Beijing Co surged +9%.
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.