European shares rose this morning after euro zone members gave Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans. The ESTX 50 (+0.96%), UK markets (+0.33%), CAC 40 (+0.81%) and the Dax (+0.46%) all posted gains in early trading. Under a timetable agreed by the 19 leaders of the euro zone, Greece will submit today a formal request for a two year loan programme, with a first list of reform commitments to be spelled out in greater detail tomorrow. Barclays Plc rose +3.2% as Chairman John McFarlane ousted CEO Antony Jenkins to speed up an overhaul. Tesco Plc gained +2.2% after falling for seven consecutive days. HSBC Holdings Plc, Aberdeen Asset Management Plc, Prudential Plc and Standard Chartered Plc all dropped more than -1.5%.
US stocks rose as a rebound in US oil prices helped offset concerns about a slowdown in China and the Greek debt crisis. The Dow Jones Industrial Average (+0.53%), S&P 500 (+0.61%) and the Nasdaq Composite (+0.11%) all increased. Altria Group Inc climbed +3.5% to lead a rally in consumer staples. Costco Wholesale Corp rose +3.4%, Hershey Co added +2.7% and General Mills Inc climbed +2.3%. Freeport-McMoRan Inc lost -3.3% as industrial metal prices tumbled amid fears that demand for raw materials from China will decrease. Newmont Mining Corp slumped -6.1% as gold dropped to a 15 week low. Energy companies rebounded as oil erased its retreat. Chesapeake Energy Corp soared +10% and Transocean Ltd increased +5.4%. Banks dropped along with a decline in Treasury yields. Citigroup Inc and Bank of America lost at least -1%. Comerica Inc fell -3.4%.
Asian stocks plummeted as Chinese shares extended a rout and European leaders gave Greece until Sunday to submit a new set of reforms. The Nikkei 225 (-3.14%), Hang Seng (-7.21%) and the S&P/ASX 200 (-2.00%) all dropped. China suspended initial public offerings and brokerages pledged to buy shares in weekend measures aimed at halting the market rout. Mainland shares posted their biggest three week slump since 1992 on concern leveraged traders are liquidating bets after valuations exceeded levels seen during China’s stock market bubble of 2007. Chinese brokerages Huatai Securities Co and Citic Securities Co slumped more than -16% in Hong Kong. Hong Kong Exchanges & Clearing Ltd dropped -7.8%, a record ninth day of decline. Fortescue Metals Group Ltd dropped -3.6% as the raw material used to make steel dropped below $50 a metric ton for the first time since April.
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.