European stocks were steady this morning ahead of Thursday’s European Central Bank policy meeting. The ESTX 50 (-0.05%), CAC 40 (-0.06%), Dax (-0.03%) and the UK markets (-0.01%) were all flat in early trading. Economists expect President Mario Draghi will leave rates unchanged, though many predict that downside risks will force him to extend his bond buying program before the end of the year. CMC Markets Plc tumbled -12% after forecasting a decline in net operating income. Ashtead Group Plc rose +4.5% as the company said full year results will probably be ahead of expectations. Hargreaves Lansdown Plc fell -1.6% after announcing that its CEO will step down by the end of September 2017.
US stocks rose as economic data bolstered views the Federal Reserve may decide against raising interest rates in the near term. The Dow Jones Industrial Average (+0.25%), S&P 500 (+0.30%) and the Nasdaq Composite (+0.50%) all increased. Navistar gained +40.7% after Volkswagen agreed to supply engines to the company in exchange for a 16.6% stake. Cepheid jumped +52.6% after agreeing to be bought by Danaher for $4 billion, including debt. Danaher’s shares were down -2.1%. Spectra Energy jumped +13.4% after being acquired by Enbridge for about $28 billion.
Asian stocks were mixed after weak data on the US services industries bolstered speculation that the Federal Reserve will keep interest rates lower for longer. Japanese shares fell as the yen strengthened. S&P/ASX 200 (+0.20%) gained, while the Hang Seng (-0.19%) and the Nikkei 225 (-0.41%) both retreated. Gome Electrical Appliances Holding Ltd climbed +7.1% in Hong Kong after Macquarie Group Ltd raised the stock’s rating to “outperform”. Rakuten Inc jumped +7.2% in Tokyo after the overseers of the Nikkei 225 Stock Average said the company will be included in the index next month. Nippon Soda Co, which will be removed from the Nikkei 225, plunged -11%.
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.