European stocks fell as investors considered whether Greece will default on a payment due Tuesday. The ESTX 50 (-0.81%), UK markets (-0.67%), CAC 40 (-1.00%) and the Dax (-1.03%) all posted losses in early trading. Greece is on course to withhold a €1.5 billion payment to the IMF due today. Starting at midnight, it will also no longer be formally under the protection of a euro-area bailout programme. Prime Minister Alexis Tsipras told ERT TV that European leaders wouldn’t throw his country out as the cost would be too high. LVMH Moet Hennessy Louis Vuitton SE and Tod’s SpA each lost -1.7% after Bank of America Corp cut its rating on both companies to “underperform”. Christian Dior slipped -3% after also being downgraded. K+S AG climbed +3% after Handelsblatt reported Potash Corp of Saskatchewan Inc’s offer of more than €40 a share for the company was too low.
US stocks fell as the S&P 500 and Dow had their worst day since October after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone. The Dow Jones Industrial Average (-1.95%), S&P 500 (-2.09%) and the Nasdaq Composite (-2.40%) all dropped. Concerns also grew about Puerto Rico’s debt problems and a bear market in China the day before quarter end and ahead of Thursday’s US jobs report and the long weekend for US Independence Day. Financials were the worst performing S&P sector with a 2.44% decline. US banks have an exposure of $12.7 billion of Greek debt. JPMorgan Chase was down -2.5% and Wells Fargo lost -2.4%. Goldman Sachs was the biggest drag on the Dow, losing -2.6%.
Asian stocks rose as investors watched developments in Greece’s debt crisis. The Nikkei 225 (+0.63%), Hang Seng (+1.18%) and the S&P/ASX 200 (+0.67%) all gained. Firms that rely on Europe for sales declined, with Nintendo Co and Nikon Corp retreating at least -1.4%. Aeon Co soared +6.6% on a report that quarterly profit will increase 50%. Japanese banks fell for a second day, with Mitsubishi UFJ Financial Inc losing -1.8%. Sony dropped -8.3% after saying it planned to raise up to 440 billion yen by issuing new shares and convertible bonds to invest in its fast growing image sensors business.
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.
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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.
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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.