European stocks sank as the US faced the first government shutdown in 17 years and Italian Prime Minister Enrico Letta fought to save his administration. The ESTX 50 (-0.88%), FTSE 100 (-0.69%), CAC 40 (-0.92%) and the DAX (-0.75%) all posted losses in early trading. UniCredit SpA lost -4.3% and Intesa Sanpaolo
tumbled -4.9% after Letta said he’ll request a confidence vote for 2nd October to try to save his five month old administration after Silvio Berlusconi withdrew his support from the ruling coalition and pulled his ministers from cabinet. Rio Tinto dropped -2%, leading mining companies lower after a measure of Chinese manufacturing missed a preliminary estimate. Salamander Energy Plc slumped -17% after saying it abandoned an exploratory well in the Gulf of Thailand. Persimmon Plc gained +1.7% as JPMorgan Chase & Co upgraded its rating on the company.
US stocks fell as concern grew that budget impasse will hurt economic growth in the world’s largest economy. The Dow Jones Industrial Average (-0.46%), S&P 500 (-0.41%) and NASDAQ Composite (-0.15%) all declined. Accenture Plc slid -2.4% on a disappointing profit projection. United Continental Holdings Inc dropped -9.3% as the world’s largest carrier cut its third quarter forecast for a benchmark revenue gauge. J.C.Penney Co sank -13% after the retailer began selling 84 million shares to raise as much as $932 million in cash. Nike Inc surged +4.7%, the most in the Dow, as fiscal first quarter profit topped analysts’ estimates. Microsoft Corp climbed +1.5% for the second biggest gain in the Dow. International Paper Co dropped -3.9% after Deutsche Bank cut the stocks rating to “hold” from “buy” citing that the company may be forced to shut down some capacity as the industry faces an increasing supply amid sluggish demand.
Asian stocks fell on concern the US government is headed for a shutdown amid a budget stalemate. The Nikkei 225 (-2.06%), Hang Seng (-1.50%) and the S&P/ASX 200 (-1.66%) all retreated. Toyota Motor Corp, which gets 31% of its revenue in North America, declined -2.6%. Honda Motor Co, a company that generates 47% of its sales in North America, fell -2.7%. James Hardie Industries SE, a company that gets 70% of sales in the US, slid -2.1% in Sydney. Mizuho Financial Group Inc sank -4.1% after its lending unit was penalised by Japan’s banking regulator for failing to end transactions with anti-social groups. BHP Billiton Ltd dropped -1.7% as crude fell. PetroChina Co slid -1.8% in Hong Kong. Daphne International Holdings Ltd tumbled -11% after KGI Securities Co said third quarter sales remained weak.
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.