The US equity markets saw some weakness to start the trading week with further falls in the crude oil price depressing the Energy sector. Conoco was down 4.5%, Transocean fell 5% and Chevron was down 3.7%. There was disappointing sales data from McDonalds with the shares losing nearly 4% on poor November trading. Other fallers included Caterpillar down 3.57%, Frontier Communications was down 5.2% and Norfolk Southern lost 3.4%. Of the risers, Morgan Stanley was up 2%, Amgen was up 1.4% and United Technology gained 1.6%.
In Asia there was a sharp fall in the previously strongly performing Chinese market. The Shanghai index lost nearly 5.5%, the biggest one day decline since 2009. The currency weakened as the authorities tightened the collateral rules for short term loans. Into 2015, a Chinese ‘hard landing’ remains top of many investors fear list. Ping An Bank lost 10%, Yanzhou Coal fell 10% and China Petroleum & Chemical Corporation fell 8.5%. In Japan, Sony fell another 4% and in Energy stocks, Japan Drilling fell 5% and Chiyoda was down 2%. Australia also saw the oil bloodbath continue with Sundance Energy down 11%, Senex down 17% and Oil Search fell 7%.
In Europe there is another profit warning from UK supermarket giant Tesco. The latest profit forecast is virtually half the estimate of six months ago and shows how quickly and dramatically profitability has declined. The sector is unsurprisingly weaker with Wm Morrison down 5.7% and Sainsburys is some 5% lower. Oil related weakness is being seen in Weir Group down 4.25%, Tullow Oil down 3.9% and Petrofac down 3.5%. European markets are typically 1% lower with Metro down 2.16%, ENI down 2.6% and Carrefour down 1.7%.
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.