The US equity market saw material weakness on Wednesday with the S&P 500 index falling 1.64%. The focus was yet again on the surprising further weakness in the crude oil price, which played havoc with the energy producers. In the sector, Exxon was down 3%, Chevron fell 2% and Conoco lost 2.2%. There was a surprise poor trading update at JP Morgan which reported lower trading revenue in the current quarter. The shares fell 2.8% with Goldman Sachs down 2.5% and Morgan Stanley down 1.8%. Virtually all stocks were down with other fallers being Toll Brothers down nearly 8%, Dow Chemical fell 3.8% and Freeport-McMoRan was down 4.6%.
In Asia there was equity weakness across the board with most indices falling 0.75%. In Australia, Telstra was a rare gainer up 1.25% as the telecoms company upgraded profit forecasts. In Hong Kong Haitong Securities fell 7.5% as the broker announced the acquisition of the investment banking arm of the embattled Portuguese bank, Espirito Santo. In Japan, Honda fell 1.2% and Olympus lost 1.8% as the Yen showed further signs of strength. In Taiwan, technology company, Foxconn, was positive, up 2.7% as November sales rise nearly 30%.
Europe is trying to rally in early trading with Allianz up 1.34%, Sanofi-Aventis up 1.31% and Siemens up 1.21%. Telecom Italia is up 5% on reports of a Telefonica led consortium bid for the company valued at approximately $15 billion. Energy stocks are trying to recover in the UK with BP up 1.7%, Shell rising 1.2% and Tullow Oil up 1.4%. Other gainers include Rolls Royce up 1%, Tesco up 1% and GlaxoSmithKline is 0.9% higher. There are few other features.
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.