European shares rose early on this morning, helped by robust German data as well as figures showing a strong recovery in Europe’s auto sector. The ESTX 50 (+0.44%), CAC 40 (+0.57%), Dax (+0.50%) and the UK markets (+0.56%) all posted gains in early trading. Vivendi SA climbed +2.8% after agreeing to pay an additional dividend of €2 a share to accommodate demands by Wall Street activist Peter Schoenfeld for bigger returns. Lafarge SA added +0.9% and Holcim Ltd rose +0.4% after agreeing to appoint Eric Olsen to lead their combined operation as they seek to overcome lingering opposition from some shareholders to their planned merger. Renault was up +2.1% and BMW gained +1.9% after industry figures published yesterday showed the auto sector’s recovery broadened to France, while Spain, Italy and Portugal recorded double-digit sales growth again as they recover from a steep collapse in demand following the 2008 financial crisis.
US stocks gained after minutes from a Federal Reserve meeting indicated that the central bank remained on track for an interest rate hike this year. The Dow Jones Industrial Average (+0.15%), S&P 500 (+0.27%) and the Nasdaq Composite (+0.83%) all advanced. Mylan jumped +14.8% after offering to buy Perrigo Co for about $29 billion in cash and stock. Perrigo jumped +18.4%. The two companies were the biggest percentage gainers in the S&P 500. Exxon Mobil lost -2% and Chevron Corp declined -1.7% as US crude futures dropped -6.6% to settle at $50.42 a barrel after US Energy Information Administration data showed the largest weekly build in oil inventories since March 2001. After the market closed, Alcoa Inc reported first quarter revenue that was below expectations. Alcoa was flat in extended trading.
Asian stocks rallied as optimism grew about an economic recovery and strong corporate profits in Japan and Hong Kong shares jumped the most since 2009. The Nikkei 225 (+0.75%) and the Hang Seng (+3.07%) both advanced, while the S&P/ASX 200 (-0.48%) declined. Hong Kong Exchanges & Clearing Ltd rose +9% after the bourse reported record trading volume on Wednesday. Lenovo Group Ltd advanced +10%. PetroChina Co whose mainland shares trade at a premium to those in Hong Kong, declined -1.2% in Shanghai. Belle International Holdings Ltd soared +12% in Hong Kong, while China Mengniu Dairy Co advanced +8.6% after it formed a strategic alliance with Walt Disney Co’s planned theme park in Shanghai. Nissan Motor Co surged +4.6% after SMBC Nikko Securities Inc raised its rating on the company. Japan Tobacco Inc, which counts Russia as one of its biggest markets, added +3.1% after the ruble strengthened to the highest against the dollar this year.
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.