US equities were weaker on Monday as investors considered the ramifications of an escalating situation involving not only Russia but also Israel. It seems likely that harsher sanctions will be imposed on Russia, as evidence mounts regarding the missile strike on Malaysian Airlines MH-17. President Obama emphasised that a diplomatic solution was paramount. Such tensions and quiet summer trading saw the VIX, the volatility index, have the biggest jump for 15 months up just over 6%. EMC Corp climbed 5% as reports that an activist investor was pushing for the world’s biggest storage computer manufacturer to adjust the corporate structure. There were few other risers with Facebook up 1.4% and Intel up just over 1%. Fallers included McDonalds down 1.5%, General Electric down 1.8% and The Gap down 1.1%.
In Asia there was a decent rally in equities, spurred on by optimism in China that the Government would further stimulate the economy. Japan was also strong, boosted by the export sector and the steel sector. Tokyo Steel gained more than 12% after the company raised its full year target by more than 20% and brokers suggested this could still be conservative. Nintendo was up nearly 3.5% after Morgan Stanley increased their rating on the game-maker. In Hong Kong, a stronger oil price boosted energy stocks such as China Petroleum up 3% and CNOOC was up just over 1%. In Australia, BHP Billiton was up 0.8% ahead of quarterly results tomorrow.
Europe is following Asia higher on Tuesday with many equity markets up more than 0.5%. In the UK, the improved sentiment in China is boosting the Mining sector with Anglo American up 3%, Rio Tinto is up 1.75% and Glencore is up just over 1.2%. An uninspiring update from the Royal Mail has seen the shares fall 1.3%, after the company reported pressure on the vital parcels business. In France, Publicis is down 5.7% after the advertising company dropped plans for a $35 billion merger with Omnicom Group. Gainers include Airbus up 1.2%, Total Fina is up just over 2% and ARM Holdings is up nearly 3% after reporting results.
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.