European shares pared early gains this morning, after initially being buoyed by expectations of new economic stimulus measures from the European Central Bank. The ESTX 50 (-0.76%), CAC 40 (-0.87%) and the Dax (-1.06%) all posted losses in early trading, while the UK markets (+0.21%) gained. RWE, which had surged nearly 17% in the previous session on plans to split off parts of its business, rose another +2% this morning as analysts at HSBC and Raymond James upgraded their views on the stock. Zodiac Aerospace fell -3.8% after Exane BNP Paribas downgraded the stock to “neutral” from “outperform”. Wirecard AG rose +4.6% after forecasting 2016 profit will be as much as €300 million. Hennes & Mauritz AB lost -1.2% as Bank of America Corp cut its rating on the shares to “sell” from “buy”.
US stocks advanced as health and consumer shares bounced back while auto sales suggested upbeat growth in November. The Dow Jones Industrial Average (+0.95%), S&P 500 (+1.07%) and the Nasdaq Composite (+0.93%) all increased. Other data showed a sturdy increase in construction spending in October. Offsetting the upbeat economic news though, was a report showing US manufacturing contracted in November for the first time in three years. UnitedHealth Group Inc’s shares rose +3.1% after its chief executive defended the company’s possible withdrawal from Obamacare health insurance exchanges. Anthem was up +4.2%. Strong US car sales in November kept the industry on pace for a record year in 2015. Ford gained +1.6% and General Motors added +0.2%.
Asian stocks were mixed as an unexpected contraction in US manufacturing added to speculation that the pace of Federal Reserve rate increases will be gradual. The Nikkei 225 (-0.37%) and the S&P/ASX 200 (-0.15%) both declined, while the Hang Seng (+0.53%) was positive. Euglena Co jumped +8.8% after ANA Holdings Inc said it plans to use biofuel made by the company. Minebea Co sank -6.7% after sating sales of its liquid crystal display backlights shrank in November. China Life Insurance Co, China Vanke Co and China Citic Bank Corp all surged by the 10% daily limit on the prospect of more monetary stimulus.
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.