European shares climbed this morning, led by miners after a rally in metals and Chinese stocks, while some investors assumed Greece’s creditors will positively consider reform proposals and finally agree a debt deal. The ESTX 50 (+0.87%), UK markets (+0.70%), Dax (+0.76%) and the CAC 40 (+0.95%) all posted gains in early trading. Associated British Foods rose +3% after posting a small rise in year to date revenue. Barratt Developments Plc climbed +1.4%, rebounding from its biggest drop in almost a year, after saying full year profit will increase about 45%. Zalando SE slipped -1.7% as investors sold shares. Saipem SpA declined -5.7% after losing its $2.2 billion contract to lay a Russian natural gas pipeline under the Black Sea.
US stocks dropped after the New York Stock Exchange suffered a major outage and market turmoil in China eclipsed Greece’s debt crisis. The Dow Jones Industrial Average (-1.47%), S&P 500 (-1.67%) and the Nasdaq Composite (-1.75%) all retreated. The NYSE resumed trade late in the session after a technical problem forced a suspension for more than three hours in the biggest outage to strike a US financial market in two years. Unofficially kicking off second quarter earnings season, Alcoa was up +0.5% in extended trade after its second quarter EPS missed analyst estimates and revenue beat estimates. Tesla Motors fell -4.82% after Pacific Crest downgraded the stock to “sector weight” from “overweight”, the second rating cut in two days.
Asian stocks rebounded amid a slew of fresh measures from the Chinese to prop up the market, including a ban on listed companies big shareholders from selling their holdings. The Nikkei 225 (+0.60%), Hang Seng (+4.04%) and the S&P/ASX 200 (+0.03%) all increased. During the first two days of this week, investors unwound 286.3 billion yuan of Chinese margin positions, even after 21 Chinese brokerages pledged to set up a 120 billion yuan fund to buy blue chip stocks. Haitong Securities Co, Poly Real Estate Group Co, China Eastern Airlines Corp and Luzhou Laojiao Co all rallied by the 10% limit. Honda Motor Co slipped -1.8% as Japanese exporters retreated after the yen jumped amid China’s rout.
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.