European stocks fell as voting began in the UK general election. The ESTX 50 (-0.76%), UK markets (-0.84%), CAC 40 (-0.73%) and the Dax (-0.35%) all posted losses in early trading. Siemens AG slipped -2% after reporting worse than forecast profit and said it will cut another 4,500 jobs. Adecco SA retreated -4.5% after saying its CEO and CFO will leave. Alcatel-Lucent SA gained +3.4% and BT Group Plc added +1.3% after both companies reported an increase in earnings. Gamesa Corp Tecnologica SA advanced +2.3% after saying first quarter profit more than tripled from a year earlier. Telecity Group Plc soared +23% after Equinix Inc made a £2.3 billion takeover approach for the company.
US stocks retreated after US Federal Reserve Chair Janet Yellen warned of high valuations, adding to anxiety about future interest rates and a global bond rout. The Dow Jones Industrial Average (-0.48%), S&P 500 (-0.45%) and the Nasdaq Composite (-0.40%) all decreased. Yellen’s comments worried investors already nervous about stock prices. The S&P 500 currently trades at 17 times forward earnings, higher than its 10 year median of 15. Apple was the biggest drag on the S&P 500, down -0.63%. MoneyGram ended up +21.41% after Western Union said it was not in talks to buy the company. Western Union gained +4.29%.
Asian stocks fell, following declines in US equities and as shares resumed trading in Tokyo after a three day holiday. The Nikkei 225 (-1.23%), Hang Seng (-1.29%) and the S&P/ASX 200 (-0.82%) all retreated. Nissan Motor Co, which gets about 78% of revenue abroad, slumped -1.6% as weak US economic data sent the yen higher. Benesse Holdings Inc plunged -18% after forecasting a wider loss than anticipated. Dai-ichi Life Insurance Co added +3.6% after its preliminary earnings report showed stronger than expected profit. China Railway Group Ltd and Huadian Power International Corp dropped at least -9%. PetroChina Co lost -3% ahead of tomorrow’s trade data release.
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.