In the US equities were weak on Thursday with the S&P 500 falling the most in three months in reaction to the Malaysian Airlines crash in the Ukraine and commencement of Israeli ground operations in the Gaza Strip. Airline stocks were predictably weak with Delta and United Continental both losing 3.4% and American Airlines lost 4%. Signs of increasingly unpredictable trading conditions in the global Semiconductor industry saw Sandisk issue a profit warning and the stock dropped 14%. Yum Brands also issued a profit warning losing 7%, the problems centred on its Pizza Hut brand. Mattel also lost more than 6% after the toy company also issued a disappointing earnings number. Microsoft was one of the few gainers with the shares up 1% in the wake of announced cost cutting at the former Nokia division.
In Asia the weakness continued, although Australia managed to recover to a small gain, helped by the bounce in the Gold price. Stocks such as Resolute Mining climbed 2.4%, Evolution was up 2.5% and Newcrest Mining was up 3.25%. There was weakness in the iron ore sector however as China data highlighted a fall in imports, Mount Gibson fell 3.5% and Atlas Iron lost 2.5%. In Japan, exporters were weak with Mazda down 1.4%, Panasonic was down 1.2% and Sharp lost just over 2%. Yaskawa Electric released earnings numbers that beat expectations and the manufacturer of industrial robots gained 4.5%. In Hong Kong, China Overseas Land rose 1.5% on speculation that mainland cities will loosen property curbs.
Europe has also opened lower as the uncertainty continues on the Ukraine, although there are thoughts that the plane tragedy may bring the crisis to a head and pave the way for some diplomatic solution. The tobacco company, Swedish Match, released positive trading results today and the stock is up nearly 2.5%. Other gainers include Nokia up 2.3% and Ericsson up 8% on strong sales data, most notably to China, and to companies building out new 4G networks. In the UK, Pearson is nearly 2% lower, Kingfisher is down 1.7% and ARM Holdings is down 2%. Defensive stocks such as utilities are benefitting and Severn Trent is up 1%.
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.