European stocks rose as investors look for guidance from a European Central Bank meeting after a volatile month. The ESTX 50 (+1.50%), UK markets (+1.68%), CAC 40 (+1.60%) and the Dax (+1.91%) all advanced. With markets in China closed for a holiday, investors will focus on the ECB, paying attention to any language indicating that a QE program could be expanded. The market rout and weaker commodity prices mean that the central bank’s quarterly inflation forecast could be downgraded. EasyJet Plc rallied +5.6% after raising its forecast for full year pre-tax profit. Ryanair Holdings Plc and IAG SA both gained +2.2%. Syngenta AG advanced +2% after saying it plans to buy back $2 billion of shares and sell its vegetable seeds business. Polyus Gold International Ltd climbed +4.6% after it was reported that it may be the target of a buyout offer.
US stocks advanced as investors weighed the impact of a stumbling Chinese economy and global market turmoil on Federal Reserve’s impending decisions about when to raise interest rates. The Dow Jones Industrial Average (+1.82%), S&P 500 (+1.83%) and the Nasdaq Composite (+2.46%) all rallied. US investors have weathered over two weeks of unusually wide swinging trade that has left the S&P 500 with its worst monthly drop in three years and a loss of 8.5% from an all-time high in May. Technology shares helped lead indexes higher. Apple was up +4.29% and Microsoft gained +3.68%. Shares of banks and bond insurers rose after Puerto Rico’s indebted public utility PREPA reached a deal with a key bondholder group. OFG Bancorp surged +19.59% and First Bancorp rose +9.81%.
Asian stocks were mixed, following a rebound in US shares. Markets in China and Hong Kong were closed for a holiday. The Nikkei 225 rose (+0.48%), while the S&P/ASX 200 declined. MS&AD Insurance Group Holdings Inc gained +4.9% in Tokyo as Goldman Sachs Group Inc advised buying the shares. NTT Docomo Inc climbed +4.4% after Barclays Plc lifted its rating on the Japanese phone company. Commonwealth Bank of Australia fell -2.3% as the nation’s banks dragged the S&P/ASX 200 down 1.4%. Toshiba Corp gained +2.1%. Nippon Express rose +1.3% after Barclays boosted its investment rating on the stock to “overweight” from “equal weight”. Furukawa Co Ltd fell -3.2%.
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.