European stocks declined as investors weighed valuations before US jobs data this week that may help gauge the timing of a reduction in Federal reserve stimulus. The ESTX 50 (-0.74%), UK Markets (-0.52%), CAC 40 (-1.13%) and the DAX (-0.62%) all posted losses in early trading. Sonova lost -1.7% after Morgan Stanley downgraded the stock to “equal weight” from “overweight”, citing that new product releases from competitors may affect revenue growth. ThyssenKrupp AG declined after raising €882.3 million through a share sale. Rio Tinto Group slipped -1% after saying it will more than halve capital spending to about $8 billion in 2015. William Hill Plc advanced +1.8% after UBS AG recommended buying the bookmaker’s shares. Antofagasta Plc fell -2.7% pacing a decline among commodity producers.
US stocks fell amid data that showed manufacturing unexpectedly climbed last month and reports on holiday retail sales. The Dow Jones Industrial Average (-0.48%), S&P 500 (-0.27%) and the NASDAQ Composite (-0.36%) all declined. Urban Outfitters Inc lost -3.5% after being downgraded to “neutral” from “buy” at Sterne, Agee & Leach Inc and as retail spending fell on the weekend after Thanksgiving for the first time since 2009. EBay Inc climbed +1.6% as a report showed online spending on Black Friday rose to a record. Newmont Mining Corp slipped -4% as the price of gold declined. 3M dropped -4.4% for the biggest loss in the Dow, after Morgan Stanley downgraded the stock to “sell” and Oppenheimer & Co said the stock is overpriced. Travelers Cos slid -1.9% after being cut to “neutral” from “buy” at Goldman Sachs Group Inc. Groupon slid -3.3% after Goldman Sachs cut its rating on the stock to “neutral” from “buy”.
Asian stocks fell as signs the US economy is strengthening fuelled speculation that the Federal Reserve will soon start tapering stimulus. The Hang Seng (-0.53%) and S&P/ASX 200 (+0.44%) both retreated, while the Nikkei 225 (+0.60%) gained. Newcrest Mining Ltd sank -6.7% as bullion traded near a five month low. Zijin Mining Group Co dropped -1.7% in Hong Kong. Hyundai Motor Co lost -4.2% as November sales fell. Kia Motors Corp dropped -5.2%. Sekisui Chemical Co surged +7.5% in Tokyo on a report it developed a material that triples the capacity of electric vehicle batteries. Tenaga Nasional surged +11% after the government allowed the utility to increase electricity tariffs by an average 15% in Peninsular Malaysia.
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.