European stocks dropped as another round of talks failed to end a stalemate in Greek debt talks. The ESTX 50 (-1.70%), UK markets (-1.29%), CAC 40 (-2.10%) and the Dax (-1.80%) all posted losses in early trading. Saipem SpA slid -5.7% after Il Sole 24 Ore reported that Eni SpA may evaluate a capital increase of as much as €2.5 billion for the drilling services company. Deutsche Telekom AG gained +1.4% after the Wall Street Journal reported that T-Mobile US Inc, which is owned by the German company, is in talks to merge with Dish Network Corp. Syngenta AG climbed +2.1% after Reuters reported that BASF SE is considering an offer to buy the company. EasyJet Plc added +1.1% after saying passengers increased in the 12 months through May.
US stocks rose on hopes of an imminent Greek debt agreement and after data pointed to renewed life in the US economy. The Dow Jones Industrial Average (+0.36%), S&P 500 (+0.21%) and the Nasdaq Composite (+0.45%) all increased. Ten year bond yields have risen about 28 basis points in three days, their biggest rise in a comparable period in nearly two years. While that boosted financials, it weighed on utilities. C.H. Robinson jumped +5.5% and was the biggest daily percentage gainer in the S&P 500. Wendy’s rose +3.3% after saying it would buy back $1.4 billion of shares, including some from Nelson Peltz’s Trian Group, its largest shareholder.
Asian stocks were mixed despite a rebound in US shares as investors speculated Greece will reach a deal with its creditors which saw the euro gain against the yen. The Nikkei 225 (+0.07%) gained, while the Hang Seng (-0.40%) and the S&P/ASX 200 (-1.42%) both decreased. Nippon Sheet Glass Co, which relies on Europe for nearly 40% of sales, jumped +2.9%. Rakuten Inc tumbled -5.2% after saying it will issue 188 billion yen of shares in a public sale. Screen Holdings Co dropped -2.9% after Mitsubishi UFJ Morgan Stanley cut its rating on the semiconductor manufacturer. Bank of Communications Co jumped by the 10% daily limit. Bank of China Ltd and China Shenhua Energy Co climbed more than 4%.
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.