European stocks climbed and Greek bonds rallied after the government retreated from its call for a debt writedown. The ESTX 50 (+1.54%), UK markets (+1.18%), CAC 40 (+1.47%) and the Dax (+1.29%) all posted gains in early trading. BP Plc jumped +4% after saying its profit adjusted for onetime items and inventory changes dropped to $2.2 billion from $2.8 billion a year earlier. Athen’s benchmark index ATG gained 6%, with the country’s banks index rising 11.6%. National Bank of Greece climbed +12.9%, Alpha Bank was up +12.4% and Eurobank jumped +13.5%. Santander rose +3.3% after reporting a nearly 70% jump in fourth quarter profit, lifted by earnings from its lending business and as charges on bad loans fell. Areva declined -0.5% after it warned that it expects to book a significant increase in provisions and writedowns of assets in its 2014 accounts.
US stocks rose as energy shares rallied after the price of crude oil advanced to a one month high. The Dow Jones Industrial Average (+1.14%), S&P 500 (+1.30%) and the Nasdaq Composite (+0.89%) all advanced. The S&P 500 energy sector gained +3%, as US crude settled up 2.8% at $49.57 a barrel, despite a strike at US refineries that could boost crude supply. Exxon Mobil Corp rose +2.5% after it reported a smaller than expected profit drop. The results follow several disappointing earnings results from many multinational companies. Chevron Corp jumped +2.5%. Denbury Resources Inc added +12% for the biggest gain in the S&P 500, while Chesapeake Energy Corp climbed +7%. First Solar and SunEdison Inc jumped at least +6.7% as Barack Obama’s 2016 budget calls for continued tax breaks for wind and solar energy.
Asian stocks were mixed amid ongoing growth concerns, while the Australian dollar plumbed six year lows after the Reserve Bank of Australia cut interest rates to a record low. The Nikkei 225 was down -1.27%, while the Hang Seng (+0.29%) and the S&P/ASX 200 (+1.46%) both increased. Toyota Motor Corp, which gets more than 75% of revenue abroad, declined -1.4% as a stronger yen sent Japanese exporters lower. Bridgestone Corp tumbled -3.3% as higher crude prices threatened to increase costs. Japan Airlines Ltd slumped -5.2%. Inpex Corp jumped +6.9%. Fast Retailing Co fell -2% and KDDI Corp dropped -2.9%. Singapore Airlines Ltd dropped -3% as oil futures extended their rally. Industrial & Commercial Bank of China Ltd climbed +1.5% in Hong Kong.
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.