European stocks advanced as investors speculated that policy makers may take action to shore up markets after the post-Brexit rout. The ESTX 50 (+2.42%), CAC 40 (+2.36%), Dax (+1.98%) and UK markets (+2.15%) all rallied this morning. EU leaders gather in Brussels today for the start of a two day European Council summit to discuss Britain’s decision to leave the bloc. Nestle SA advanced +3.2% after naming Ulf Mark Schneider as successor to CEO Paul Bulcke. G4S Plc jumped +8.7% after Credit Suisse Group AG upgraded the company’s rating to “buy” from “neutral”, citing benefits from a weaker pound and the stability of its business. Redrow Plc climbed +2.9% after forecasting that full year profit may beat analysts’ estimates.
US stocks tumbled after Britain’s vote to leave the European Union, sending major US indexes to their worst day drop in 10 months. The Dow Jones Industrial Average (-1.50%), S&P 500 (-1.81%) and the Nasdaq Composite (-2.41%) all retreated. US Treasury Secretary Jack Lew said he sees no signs of a financial crisis arising from Britain’s decision, although the result does present additional headwinds for the US economy. Banks continued to be among the worst hit as traders discounted chances the US Federal Reserve will raise interest rates in the near term. Bank of America down -6.3% and JPMorgan off -3.3%, were among the biggest drags on the S&P.
Asian stocks erased early losses and most Japanese shares rose amid speculation policy makers will move to shore up financial markets. The S&P/ASX 200 (-0.66%) and the Hang Seng (-0.27%) both finished negative, while the Nikkei 225 (+0.09%) was positive. Japanese construction firms, warehouse stocks and food producers led gains. Taisei Corp rose +1.7%, while construction firm Maeda Corp jumped +5%. General contractor Obayashi Corp climbed +2.3%. Standard Chartered Plc fell -2.8%, poised for its steepest three day loss since 2012. CK Hutchison, which generated 37% of its total earnings before interest and taxes from the UK last year, dropped -2.5%.
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.