European shares rebounded this morning, with Glencore leading the market higher after announcing plans to cut its debt. The ESTX 50 (+1.04%), UK markets (+0.88%), CAC 40 (+1.02%) and the Dax (+0.97%) all posted gains in early trading. Data showing German industrial production increased in July also added to investor optimism. Glencore surged +13% after saying it will suspend dividends, sell assets and raise $2.5 billion in a new share issue to cut its debt by a third a third to $20 billion by the end of next year. It has been under pressure to cut debt as prices for its key products, copper and coal, have sunk to more than six year lows. Enel SpA advanced +1.4% after saying it will meet its 2015 financial targets. UniCredit SpA rose +1.6% after CEO Federico Ghizzoni told la Repubblica that the bank doesn’t need to raise capital.
US stocks dropped on Friday after a mixed August jobs report did little to quell investor uncertainty about whether the Federal Reserve will increase interest rates this month. The Dow Jones Industrial Average (-1.66%), S&P 500 (-1.53%) and the Nasdaq Composite (-1.05%) all retreated. Nonfarm payrolls increased 173,000 last month, fewer than 200,000 that economists polled by Reuters had expected. But the unemployment rate dropped to 5.1%, its lowest in more than seven years, and wages accelerated. The CBOE Volatility index, known as Wall Street’s “fear gauge”, rose 7% to 27.41, well above its long term average of 20. Caterpillar’s shares lost 1.81% after Baird downgraded the stock to “neutral”. Netflix fell -2.24% in its sixth straight day of losses. Microsoft was the biggest drag on the S&P and Nasdaq with a 2.05% fall.
Asian stocks fell as a stronger yen weighed on shares in Tokyo and investors awaited the resumption of trading in China following a holiday. The Nikkei 225 (+0.38%) gained, while the Hang Seng (-0.91%) and the (-0.20%) both decreased. China worked to ease concern over its economy at the G20 gathering in Turkey at the weekend, with officials predicting stabilisation in the its currency and stocks markets in the coming weeks. Toshiba Corp gained +1.8% after reporting earnings following a delay after facing an accounting scandal. Haseko gained +1.6% and DeNA surged +8.7% after it was announced that both companies will be added to the Nikkei 225 at the end of the month, replacing Nitto Boseki Co and Heiwa Real Estate Co. Nitto Boseki plunged -19% and Heiwa slumped -14%. Japan Tobacco lost -1.8% and SoftBank declined -1.6%.
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.