US stocks rose on Wednesday amid optimism that the domestic economy continues to fire along and many indices closed at an all time high. It could well be a good retail season with high levels of consumer confidence and the falling oil price also boosting sentiment. During the third quarter the US GDP rose at an annualised 3.9%, more than expected. Silicon chipmakers were in focus with some good corporate results. Analog Devices was up 5.5% as the company reported not only higher revenue levels but also wider than expected margins. Texas Instruments was up 3.6%, Intel gained 1.6% and Xilinx rose just over 2.5%. In the Agriculture sector, Deere lost nearly 1% as profits struggled in the wake of lower farm spending. The oil sector also saw some sharp drops with Seadrill down 23% as the company suspended dividends and Transocean lost 6%.
In Asia there was weakness for the first time in several trading sessions as a stronger Yen negatively impacted stocks and Energy shares continued to fall. In Australia, Santos fell 3%, Woodside Petroleum lost 2.76% and Oil Search fell 2.64%. In the Retailing sector, Woolworths rose 2.2% as the company confirmed that sales trends were improving. In Japan, a number of shares fell on broker downgrades with OKI Electric down 3.2%, Fuji Heavy lost 3% and Sharp declined 2.4%. The Chinese market continued to be buoyant up 23% year to date with valuations at a 20 month high. China Everbright Bank was up 4% and China Life Insurance gained 5.9%.
Europe is modestly higher in quiet trading ahead of the US Thanksgiving holiday with equity markets closed. BG Group in the UK is down another 1.35% as investors shun the excessive pay award to the new CEO and the company continues to be impacted by weak energy prices. Stagecoach is 6% higher as the transport company along with its partner Virgin have been awarded the new East Coast rail franchise. Fallers in Europe include Statoil down 2.4%, ENI is down 1.25% and Total is nearly 1% lower. Gainers include KPN Telecom up just over 1%, Bayer is up 1.2% and Credit Agricole is up 1.1%.
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.