European stocks dipped this morning amid concern that the European Central Bank is moving toward tighter monetary policy. The ESTX 50 (-0.60%), CAC 40 (-0.73%), Dax (-0.80%) and the UK markets (-0.23%) all posted losses in early trading. Bloomberg News reported that an informal consensus was building in the ECB to gradually rein in quantitative easing, while Federal Reserve officials talked up the chance of a US interest rate increase this year. Altice NV lost -1.4% after terminating an offer to buy the rest of its SFR Group SA telecom unit after France’s financial markets regulator said it was opposed to the plan. SFR Group fell -6.2%. Tesco Plc jumped +7.3% after reporting first half profit that beat analysts’ estimates. Delta Lloyd NV rallied +29% after NN Group offered to buy the company for €2.4 billion.
US stocks dropped as investors worried about Britain’s exit from the European Union and the prospect of a Federal Reserve interest rate hike in coming months. The Dow Jones Industrial Average (-0.47%), S&P 500 (-0.50%) and the Nasdaq Composite (-0.21%) all declined. Meanwhile the International Monetary Fund lowered its 2016 growth forecast for the US economy to 1.6% from 2.2% and painted a gloomy picture of the global economy. Sears surged +6.42% after Bloomberg reported that the department store chain’s Craftsman tool brand had attracted multiple bidders. Micron Technology was flat despite reporting fiscal fourth quarter revenue about analysts’ expectations.
Most Asian stocks outside Japan slid on concern central banks will reduce stimulus, while the Nikkei climbed after the yen weakened. The S&P/ASX 200 (-0.57%) retreated, while the Hang Seng (+0.42%) and Nikkei 225 (+0.50%) increased. PetroChina Co and Kunlun Energy Co surged more than +3% each as crude futures approached $50 a barrel in New York. Cnooc Ltd climbed +2.8%. China Oilfield Services Ltd rallied +8.2% after Nomura Holdings Inc raised its ratings on the shares to “buy”. Zijin Mining Group Co slid -3.6% amid a slump in the price of gold.
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 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.
Morning Spread 26th September 2016 Asian shares declined following losses on Wall Street as investors attention turned from central banks to American politics ahead of the first US presidential debate.