US equities recovered losses on Friday as investors digested the possible ramifications of the Malaysian MH-17 tragedy. Strong performing sectors included Healthcare up 1.6%, Technology was up 1.3% and Financials gained nearly 1.1%. Google was up nearly 4% after the technology giant released results that beat expectations. The company outlined new plans to boost user traffic across mobile, video and web services. Airlines recovered losses with American Airlines and Spirit Airlines both gaining more than 2%. Other risers included Boeing up 1.4%, Abercrombie & Fitch was up 2.6% and Facebook was up 3%. There were few decliners with only the Energy sector seeing some weakness, Transocean lost 1.1% and Schlumberger dropped 2%.
In Asia, markets were quiet with Japan closed for a holiday. Other markets were weaker by around 0.2%, although China was overshadowed by news that another corporate bond may suffer a default. The Huatong Road & Bridge Group saw the yield on it’s paper surge to 27%. In Hong Kong, casino stocks were in favour with MGM China up nearly 5%, Galaxy up nearly 3% and Sands China rose by a similar amount. Auto stocks in China were weak once again with Dongfeng Motor losing just over 4%. In Australia, uranium stocks were boosted by sales possibly opening up soon to India, with Paladin up 4% and Energy Resources up 3.3%.
Europe has turned weaker in early trading with focus in the UK on the supermarket giant, Tesco. The company has announced the departure of the CEO, Philip Clarke, who has struggled to fill the boots of his predecessor, Sir Terry Leahy. Dave Lewis from Unilever will be appointed and the shares are 2% higher despite another warning on sales. Fallers in Continental Europe include Deutsche Bank down 1.8%, BASF down 1.5% and Daimler down 2%. In Portugal, Espirito Santo is unchanged despite news that the major holding company cannot pay creditors and advisers have been appointed to boost the Bank’s troubled balance sheet.
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.