European stocks were negative this morning as investors awaited US economic reports and this weeks European Central Bank rate’s decision. The ESTX 50 (-0.23%), CAC 40 (-0.31%), Dax (-0.29%) and the UK markets (-0.06%) all posted losses in early trading. Volkswagen AG lost -2.9% after posting quarterly sales that fell short of the average analyst projection and reiterating its forecast for a drop in annual revenue. IG rose +2% after forecasting its full year earnings to come slightly ahead of market expectations ArcelorMittal and Anglo American Plc climbed at least +1%.
US stocks rose on Friday after US Federal Reserve Chair Janet Yellen said an interest rate hike would likely be appropriate in the coming months. The Dow Jones Industrial Average (+0.25%), S&P 500 (+0.43%) and the Nasdaq Composite (+0.65%) all increased. Data on Friday showed US economic growth slowed in the first quarter, although not as sharply as initially thought. After Yellen’s speech, traders raised their expectations of a June rate hike to 34% from 30%, according to CME Group. Palo Alto dropped -12.36% after a wider than expected quarterly loss. GameStop fell -3.93% after forecasting lower than expected revenue and profit for the current quarter. Hewlett Packard Enterprise rose +5% and Yahoo added +2.9%.
Asian stocks rose as the dollar maintained strength against the yen amid expectations for higher US interest rates. The Hang Seng (+0.90%) and the Nikkei 225 (+0.98%) both increased, while the S&P/ASX 200 (-0.54%) declined. Japanese exporters rallied, with Toyota Motor Corp rising +1.8% and Mazda Motor Corp adding +2.7%. Panasonic Corp jumped +3.6% after the Nikkei newspaper reported the company will end production of liquid crystal display panels. Takata Corp climbed +3.4% after ruling out bankruptcy as a way of mitigating its liabilities. Hokuhoku Financial Group Inc jumped +3.8%, while Gumma Bank Ltd added +3.5% after SMBC Nikko Securities Inc raised its rating on several banks.
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.