US equity markets were aided on Wednesday by a surge in energy stocks, which were reacting to crude oil climbing to a 2015 high. Gainers included Exxon up 1.67%, Transocean up 10.12%, Schlumberger up 3.61% and Halliburton up 4.46%. In the Retailing sector, Abercrombie & Fitch gained 6.7% on heavy option buying and signs that the core US market is stabilising. Other stocks on the move included Caterpillar up 2.6%, Texas Instruments up 3.1% and Intel gained 4.25%.
Asia followed the US higher with Chinese stocks rallying, although there was some profit taking in the Indian market. In South Korea there was negative pressure on the Chemical sector with LG Chemical down 4.5% and Lotte Chemical fell 4.7% on the fall in the polyethylene price. Chinese stocks rose to a seven year high with optimism on Government spending in the Nuclear power sector boosting stocks such as Shanghai Electric up 10% and Sichuan Danfu rose a similar amount. Oil stocks in Australia rose sharply with AWE up 11%, Senex up 8.5% and Sundance Energy up 8.3%. Japanese stocks were boosted by a weak Yen with Mitsubishi UFJ up 3% and Nomura Real Estate was up 3%.
Europe is lower in early Thursday trading as some corporate results have disappointed. Diageo is down 2.44% as revenues in all the operating territories missed expectations. The company is seeking to reduce stock levels in Asia and currency volatility also went against the company. Other decliners include BASF down 2.09%, Deutsche Bank down 1.17% and Allianz down 1.35%. A negative sector note on Defence by UBS has meant that BAE Systems is down 3.57% and Meggitt is some 3% lower. The broker cites too high takeover premium and US budget pressures. Leading the gainers is Unilever, up 5.11% as first quarter sales growth of 2.8% comfortably beat the 2.1% estimate.
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.