European stocks rallied as the markets reopened after the Easter holidays, amid investor confidence that central banks will continue to support economies. The ESTX 50 (+0.97%), UK markets (+1.15%), CAC 40 (+1.12%) and the Dax (+0.88%) all posted gains in early trading. Commerzbank AG added +1% after gaining federal court approval of a $1.45 billion agreement to defer prosecuting the bank for violating US laws, including sanctions on doing business with Iran and Sudan. TNT Express NV jumped +31% after agreeing to a €4.4 billion takeover offer from FedEx Corp. TNT investors will receive €8 a share in cash, 33% more than the closing price on April 2nd. International Consolidated Airlines Group SA, Air France-KLM and Deutsche Lufthansa AG slid at least -1.9% after JPMorgan Chase & Co downgraded the companies, citing flat margins and competition from Middle East airlines. Glencore Plc and Anglo American Plc rallied more than +3.2%. Seadrill Ltd jumped +8% and Tullow Oil Plc climbed +4.2%.
US stocks rose as expectations the Federal Reserve could hold off longer on raising US interest rates offset concerns over Friday’s surprisingly weak monthly jobs report. The Dow Jones Industrial Average (+0.66%), S&P 500 (+0.66%) and the Nasdaq Composite (+0.62%) all advanced. The jobs report came in well below expectations, with data showing US employers last month added the fewest jobs in over a year. Underscoring the economic weakness, an ISM report showed the pace of growth in the US services sector fell in March to its lowest level in three months. Microsoft Corp climbed +3.1% after Wells Fargo & Co raised its rating to “outperform” from “market perform”. Apple Inc added +1.6%. Delphi Automotive Plc rose +3.2% to a record after Morgan Stanley and RW Baird & Co raised their price targets. Transocean Ltd rose +10% and Diamond Offshore Drilling gained +5.6% as West Texas Intermediate crude advanced +6.1%.
Asian stocks rose following the US, while the dollar held on to its gains after rebounding against the euro and yen on higher US treasury yields. The Nikkei 225 (+1.25%), Hang Seng (+0.77%) and the S&P/ASX 200 (+0.46%) all gained. CSR Corp and China CNR Corp both surged +10% after saying their merger got regulatory approval. China Southern Airlines Co jumped by the daily limit as lower fuel prices bolstered its profit outlook. Yanzhou Coal Mining Co rose +4.9% and PetroChina Co advanced +1.9%, helping lead Chinese energy shares higher. Inpex Corp climbed +4.4% after the US benchmark jumped more than +6%. Koei Tecmo Holdings Co increased +3.8% after reporting stronger than expected preliminary earnings. Asics dropped -1.8% after Credit Suisse lowered its rating on the company to “neutral” from “outperform”.
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.