European shares advanced this morning as investors focused on Greece’s debt talks and a policy meeting of the ECB later today. The ESTX 50 (+0.38%), UK markets (+0.02%), CAC 40 (+0.30%) and the Dax (+0.62%) all posted gains in early trading. Shares in Ahold and Delhaize rose +2.6% and +5.1% respectively. The two companies are in talks to create a top 20 global retailer with a major presence in the US. A deal would see a combined retailer worth around €23 billion. Syngenta AG climbed +1.6% after it was reported that it is working with Monsanto Co to iron out regulatory concerns that could stymie the US company’s proposed takeover of its Swiss rival. Credit Suisse Group AG advanced +2.2% after RBC Capital Markets upgraded its rating on the bank to “buy”, citing the possibility of strategic changes when Tidjane Thiam takes over as CEO next month. Altice SA slid -2.7% as rivals Telefonica SA and Bouygues SA joined forces to offer telecommunication services to multinational companies.
US stocks declined as a jump in bond yields hit utilities and other dividend payers, but energy gains and optimism Greece is near a deal with creditors limited losses. The Dow Jones Industrial Average (-0.16%), S&P 500 (-0.10%) and the Nasdaq Composite (-0.13%) all retreated. Worries about when the Federal Reserve will raise interest rates added to caution in the market. A fed board member said the economy’s recent poor performance may be more than transitory, as the full impact of weak consumer spending, low investment and the strong dollar become apparent. Macy’s rose +2.5% after Reuters reported several hedge funds have asked the US company to consider options for its real estate, including selling some major sites and then leasing them back. General Motors was up +0.1% after it forecast US industry sales to finish May at the strongest pace since January 2006. US steel was up +7.9% as shares of steel companies gained.
Most Asian stocks fell as Japanese shares declined on a stronger yen and investors awaited the outcome of talks between Greece and its creditors. The Nikkei 225 (-0.34%) and the S&P/ASX 200 (-0.93%) both dropped, while the Hang Seng (+0.64%) increased. Nitto Denko Corp, which gets more than 70% of sales abroad, dropped -2%. Lida Group Holdings Co slumped -7.1% after it was reported that the construction firm was preparing to issue convertible debt. Nisshin Seifun Group Inc jumped +6.2% after Nomura Holdings Inc upgraded its rating on the manufacturer. China Construction Bank Corp dropped -1.4% and Shanghai Pudong Development Bank Co declined -1% after the Chinese government said it will allow them to issue certificates of deposits, raising concern the cost of attracting deposits will increase.
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.