European stocks retreated this morning as they failed to hold on to the previous day’s gains in a week of wild swings. The ESTX 50 (-0.40%), UK markets (-0.18%), CAC 40 (-0.26%) and the Dax (-0.79%) all posted losses in early trading. Fears of a slowdown in global economic growth have sparked big price swings across equities, currencies and commodities this week. These fears have yet to leave the market, even if loose monetary policy is expected to support stock prices. Miners and energy shares were the only groups to advance, with Glencore Plc up +2.8% and Seadrill Ltd rallying +7.6%. Havas gained +1.5% after the company reported second quarter like-for-like sales growth of 5.5%. Hermes fell -1% despite a 20% rise in first half operating income in line with expectations.
US stocks rallied as strong US economic data and hints that a September interest rate hike was unlikely fuelled by optimism that the worst of recent market turmoil was over. The Dow Jones Industrial Average (+2.27%), S&P 500 (+2.43%) and the Nasdaq Composite (+2.45%) all increased. Data on Thursday showed that the US economy grew 3.7% in the second quarter, much faster than the previous estimate of 2.3%. The recent drop in US shares reduced valuations some investors had seen as pricey. The S&P 500’s valuation was about 15.4 times expected earnings as of Wednesday’s close, compared to around 17 for much of 2015. Giving the biggest boost to the S&P and Nasdaq, shares of Apple surged +2.94%. The company invited journalists to a Sept 9th event, where it is expected to unveil new iPhones. Tesla was up +8.07% after its Model S P85D received the highest possible score in tests by Consumer Reports magazine.
Asian stocks rose as a global rally gathered pace and the US economy grew faster than expected in the second quarter. The Nikkei 225 (+3.03%) and S&P/ASX 200 (+0.58%) both advanced, while the Hang Seng (-1.04%) declined. The weaker Yen boosted Japanese exporters. Fuji Heavy Industries, which gets 60% of revenue from the US, surged +5.6%. Toyota Motor Corp advanced +4.6%. Mitsubishi Corp jumped +6.2% after agreeing to spend $1.09 billion on a Singapore based food commodity trader Olam International. Nexon Co surged +6.3% after Mitsubishi UFJ Morgan Stanley Securities Co raised its rating on the stock to “overweight”.
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.