In Asia, the commodity sector was weak again, with the iron ore price continuing to slide. Australian miners such as BC Iron was down 4.4%, Arrium dropped nearly 6% and Fortescue was down nearly 4%. Even the majors were negatively impacted with BHP Billiton down 2.6% and Rio Tinto was down 2.71%. Exporters outside of Japan were dragged lower on competition fears as a result of the weak Yen. In South Korea, Hyundai Motor lost 2.6%, Hankook Tire was down over 2% and Kumho Tire was some 3.15% lower. In Japan, the textile sector was boosted by positive broker comment, with Toray Industries up 6.4% and the sector was up 3.2%. There was weakness in the consumer lending sector on the recession fears with Credit Saison down 3.3% and Orix Corp lost 2.7%.
US equities fell from their highs in Wednesday trading after the Federal Reserve minutes showed that there was concern regarding deflation. Retailers bucked the trend and were the best performing sector after results came out, topping market expectations. Target Corp rose 7.4%, Staples jumped 9% and Lowes gained 6.4%. In the Energy sector, Ultra Petroleum was up 3.3% as the natural gas stock reacted positively to some record snow storms and the hope of a cold winter. Other risers included Frontier Communications up 2.04%, Mondelez International was up 1.04% and Coca Cola was up 1.58%. On the negative side, Alcoa lost 2.7%, Qualcomm lost 2.1% and Transocean fell 1.95.
In Europe equities are weaker in Thursday trading as fears continue that economic recovery is losing traction and that deflation remains evident. A manufacturing gauge also missed expectations with a reading of 50.4 against a 50.8 forecast. In France, Technip lost over 6% as the Energy Services company bid for its rival, CGG. Financials are lower with Santander down 2.23%, Commerzbank is down 1.9% and ING is down 1.78%. In the UK, the Mining sector is also lower on Chinese growth fears with Anglo American down 2.5% and Antofagasta down 1.5%.
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.