European stocks declined as oil’s descent to six year lows hit earnings and investment among energy stocks. The ESTX 50 (-0.89%), UK markets (-0.99%), CAC 40 (-0.70%) and the Dax (-0.77%) all posted losses in early trading. Shell tumbled -3.5% after saying it will cut $15 billion of spending over the next three years as the crash in oil prices saw fourth quarter profit miss expectations. Nokia Oyj plunged -3.6% after returning to profit in the fourth quarter as wireless carriers spent more on expanding and improving networks. Vallourec tumbled -7.1% after the producer of steel pipes for the oil and gas industry announced plans to write down assets by as much as €1.2 billion to reflect lower spending by energy producers amid plunging crude prices.
US stocks closed down, driven by a sharp decline in the S&P 500 energy sector, after the Federal Reserve said the domestic economy was growing at a solid pace, signalling it remains on track to raise interest rates later this year. The Dow Jones Industrial Average (-1.13%), S&P 500 (-1.35%) and the Nasdaq Composite (-0.93%) all retreated. The S&P energy sector finished down -3.9% as US crude futures tumbled more than 4% to $44.31 per barrel. Barclays and Goldman Sachs posted bearish notes on oil earlier in the day. The market had earlier been boosted by earnings from several companies. Apple advanced +5.7% after beating Wall Street expectations with record sales of iPhones in the holiday shopping season, which helped the company post the largest quarterly profit in corporate history. Boeing added +5.4% after handily beating top and bottom line expectations.
Asian shares extended their losses after the Federal Reserve cited global risks to the US economy and as oil slumped below $45 a barrel. The Nikkei 225 (-1.06%) and the Hang Seng (-1.07%) both decreased, while the S&P/ASX 200 (+0.30%) increased. PetroChina Co slid -2.1% as regional energy producers retreated. Samsung Electronics Co sank -1.3% in Seoul after operating profit at South Korea’s biggest company slumped. Fortescue Metals Group Ltd surged +9.3% in Sydney after saying shipments jumped as China absorbs supply increases as higher cost producers are displaced. Komatsu tumbled -8.5% and Hitachi Construction Machinery declined -11% after reporting poor earnings.
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.