European shares rose, tracking gains in the United States and Asia, as retail stocks rallied and amid optimism monetary policies by the ECB and Federal Reserve will support the economy. The ESTX 50 (+1.49%), UK markets (+1.13%), CAC 40 (+1.68%) and the Dax (+1.19%) all posted gains in early trading. Tesco surged +7.4% after posting Christmas sales that beat estimates and said it’s cutting prices on hundreds of branded products. Pernod Ricard SA added +3% after Bank of America Corp raised its recommendation on the company to “buy” from “sell”, citing trends in China, the recovery in the US and momentum in India. Marks & Spencer Group Plc dropped -3.2% after saying same store sales at a division that includes its apparel business dropped 5.8% in the third quarter, missing analysts’ estimates. SAP SE declined -2% after UBS Group AG downgraded the company to “hold” from “buy” and said margin expansion in the last decade has not come from productivity and that a customer survey suggests weak demand growth for 2015
US stocks rebounded after strong private sector jobs data and as minutes from the most recent Federal Reserve meeting reassured investors there was no hurry to start raising interest rates. The Dow Jones Industrial Average (+1.23%), S&P 500 (+1.16%) and the Nasdaq Composite (+1.26%) all advanced. Exxon Mobil Corp rose +1% as oil prices bounced back. J.C.Penney surged +20.3% after saying same stores sales rose 3.7% in November and December. Dicks Sporting Goods Inc jumped +11.7% after it was reported that the company is holding early stage conversations with a handful of buyout firms about going private. D.R.Horton rose +5.1% after Bloomberg reported that Barack Obama was set to announce a reduction of Federal Housing Administration mortgage insurance premiums.
Asian stocks rose following a rebound in US equities. The Nikkei 225 (+1.67%), Hang Seng (+0.65%) and the S&P/ASX 200 (+0.52%) all advanced. Toyota Motor Corp, which gets about 31% of sales from North America, advanced +2% in Tokyo to pace gains among exporters as the yen fell. China Longyuan Power Group Corp jumped +6.8% in Hong Kong after a report the government cut tariffs on wind power. PetroChina Co gained +2.5% after oil prices climbed from their lowest since April 2009. SK Hynix Inc added +5.4% in Seoul on speculation it will benefit from slower output at competitor Micron Technology Inc. Among the most actively traded stocks in Hong Kong were Unity Investment Holdings Ltd, down -15.4%, Bank of China, down -0.5% and Heng Fai Enterprises Ltd, down -40%.
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.