European stocks declined this morning as lingering fears over China’s economic growth prospects and a sharp commodities sell-off rippling through global markets. The ESTX 50 (-1.08%), UK markets (-0.25%), CAC 40 (-1.20%) and the Dax (-1.05%) all posted losses in early trading. Ryanair lost -1% after saying that over-capacity could weigh on average fares. Merlin Entertainments Plc dropped -3.7% after lowering its forecast for earnings in 2015 following a roller coaster accident in June. UBS declined -1.9% after reporting better than expected second quarter profit. Valeo SA slid -3.3% after posting first half sales that matched analysts’ projections. Royal Phillips NV gained +3.5% after posting better than expected earnings on rising demand in North America, Eastern Europe and India.
US markets dropped as slowing global growth dragged commodity related stocks lower. The Dow Jones Industrial Average (-0.92%), S&P 500 (-1.07%) and the Nasdaq Composite (-1.12%) all retreated. Stocks in the energy and materials sectors weighed heavily on the market after weaker than expected economic data from China and the euro-zone raised concerns about global growth. Oil prices hit their lowest since March. Biogen lost -22% after more than halving its revenue growth forecast for 2015. Amazon rose more than +20% at one point and closing up +10% after posting an unexpected quarterly profit. Visa rose +4.3% after reporting results that handily beat expectations.
Asian shares dropped following losses on Wall Street and worries over China. The Nikkei 225 (-0.95%) and the Hang Seng (-2.99%) both retreated, while the S&P/ASX 200 (+0.43%) gained. Investor sentiment was soured by official data released that showed profit at China’s industrial firms dropped 0.3% in June from a year earlier, reversing a 0.6% rise in May. This adds to pressure on an economy that is struggling to regain momentum, after data on Friday showed that China’s factory sector contracted the most in July. China Unicom, Bank of Communications and PetroChina slumped by the daily limit of -10%.
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.