European equities rose this morning as investors speculated central banks will deploy stimulus to contain the impact of the UK’s decision to leave the European Union. The ESTX 50 (+1.80%), CAC 40 (+1.64%), Dax (+1.24%) and the UK markets (+1.74%) all posted gains in early trading. EU leaders in Brussels said there could be no turning back for the UK and warned David Cameron that delaying the period before the country formally activates the EU exit mechanism will prevent the start of negotiations over any future relationship. TUI AG declined -3.59% after coordinated terror attacks at Istanbul’s airport. Gains have been led by British pharma stocks such as AstraZeneca and GlaxoSmithKline, both up between 10.5% and 7.5%, in past three sessions.
US stocks bounced back yesterday, recouping some recent losses, as investors sought cheap assets after a two day equity rout sparked by the UK’s decision to leave the European Union. The Dow Jones Industrial Average (+1.57%), S&P 500 (+1.78%) and the Nasdaq Composite (+2.12%) all advanced. Investors are bracing for more volatility in the coming weeks amid uncertainty about how the UK will pursue its EU exit, with some pointing to more possible downside. Gilead Sciences gained +5.2% after winning US approval for a hepatitis C medicine. Endo International surged +18.3%, the top performer in the S&P 500, after the company announced a new patent.
Asian stocks rose amid optimism that policy makers will introduce measures to limit the economic fallout from the UK leaving the European Union. The S&P/ASX 200 (+0.77%), Hang Seng (+1.31%) and the Nikkei 225 (+1.59%) all increased. Japan’s Prime Minister Shinzo Abe said he will mobilise all possible measures, while South Korea proposed a package of fiscal stimulus. Idemitsu Kosan Co tumbled -6.5% after descendants of the company’s founder said they oppose a merger with Showa Shell Sekiyu KK. Showa Shell slumped -2.8%. Seven & I Holdings Co fell -0.9% as data showed retail sales didn’t increase in May from the previous month. Toyota Motor Corp added +2.9%, while Sony Corp increased +4.8%.
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.