European stocks fell as investors continued to speculate on the fallout from Britain’s shock vote to leave the European Union. The ESTX 50 (-0.66%), CAC 40 (-0.81%), Dax (-0.87%) and the UK markets (-1.15%) all posted losses in early trading. Chancellor of the Exchequer George Osborne sought to reassure financial markets by saying that a contingency plan is in place to shore up the UK economy. Royal Bank of Scotland Plc lost -14% and Barclays Plc slid -9.2%. EasyJet tumbled -16% after warning that a drop off in travel demand arising from a Brexit will pare earnings over the rest of the summer period. Volvo AB fell -8.4% after saying it increased its provision for a possible European commission fine for suspected vehicle cartel.
US stocks dropped on Friday as the investors digested what the effects of the UK leaving the European Union would mean for the US economy. The Dow Jones Industrial Average (-3.39%), S&P 500 (-3.59%) and the Nasdaq Composite (-4.12%) all dropped. As measured in real economic terms, a Brexit shouldn’t actually be all that bad for the US. The UK accounts for only a small portion of US exports, less than 3% pf the combined revenue of all the companies in the S&P 500. Europe in general makes up a bigger portion, and the economic consequences of Brexit for the rest of the EU will likely be limited, at least in the immediate future. Of the stocks in the Dow Jones Industrial Average only one, Walmart (+0.19%) was up. Of the others that were down, the worst performer was Goldman Sachs (-7.07%), followed by Caterpillar (-4.5%).
Asian stock rebounded after last week’s British vote to leave the European Union roiled global markets. The S&P/ASX 200 (+0.47%) and the Nikkei 225 (+2.39%) both advanced, while the Hang Seng (-0.16%) was slightly down. Rallies in Japan and China overshadowed declines in other regions. The rally on Japan was led by so called defensive shares. Yamazaki Baking Co climbed +7.6%, Japan Tobacco Inc rose +5% and Astellas Pharma Inc advanced +6.6%. But the fallout from the Brexit vote continued to hit exporters. Toyota Motor Corp slid -1.7% after plunging -8.7% on Friday. Mazda Motor Corp plunged -9.7% after Nomura cut its rating on the company, citing a slowdown in the European car market and a stronger yen.
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.
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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.
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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.