European shares rose in early trading, led by a rally in energy shares after Royal Dutch Shell agreed to buy BG Group for £47 billion in the first oil super-merger in a decade. The CAC 40 (+0.10%) and UK markets (+0.45%) both posted gains, while the Dax (-0.28%) declined and the ESTX 50 (-0.02%) was flat. Shares in BG jumped +39%, while Tullow Oil soared +9.8%, BP gained +4.4%, Repsol added +2.4% and Total climbed +0.9%. Shell fell -1.8%. BG rallied the most in six years yesterday before takeover talks were reported, and bullish options increased. Sky Plc advanced after Reuters said Vivendi SA is looking acquire the company. Sky denied the report. Experian Plc added +2.5% after Credit Suisse Group AG boosted its rating on the credit reporting firm to the equivalent of a buy.
US stocks ended Tuesday slightly lower, reversing course late in the session as strength in the dollar offset optimism about deal news. The Dow Jones Industrial Average (-0.03%), S&P 500 (-0.21%) and the Nasdaq Composite (-0.14%) all retreated. FedEx rose +2.7% as it seeks to buy Dutch company TNT Express for $4.8 billion. General Motors fell -2.5% and the stock was among the day’s most active after Canada agreed to sell nearly 73.4 million shares of the company to Goldman Sachs. Viacom fell -1.9% after it halted its $20 billion repurchase program as it embarks on a restructuring that includes cutting jobs and reorganising three of its domestic network groups. Twitter jumped +4% following a Barron’s report that the company has hired advisors to fend off a takeover bid.
Asian stocks rose as investors awaited a Bank of Japan policy decision and the release of Federal Reserve meeting minutes. The Nikkei 225 (+0.76%), Hang Seng (+3.38%) and the S&P/ASX 200 (+0.59%) all rallied. Takashimaya rose +4% even though its earnings were mostly in line with analyst expectations. Takashimaya has risen over 30% so far this year. Rival Isetan Mitsukoshi rose +3.1%, extending its year to date gains to 44.8%. In China, investors sold small-cap stocks and shifted money into blue chips. Bank of China was up +1.6%, Agricultural Bank of China gained +1.1% and Everbright Bank jumped +4.2%. Haitong Securities Co, China Communications Co and China Oilfield Services Ltd surged at least +15% in Hong Kong. Gome Electrical Appliances Holding Ltd jumped +23% after Citigroup recommended the shares.
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.