In the US equity market there was weakness, although markets strengthened as the day progressed. A rally in Energy and Technology stocks offset some investor concerns over both China and Greece. Apple was up 1.53%, Nabors gained 2.3%, Amazon was up 1.9% and Google gained 1.2%. In Telecoms, Verizon issued a downbeat statement on profits at the wireless division, as the company have had to offer greater discounts and promotions. In the Retailing sector, Lululemon Athletica was up over 6% after a strong broker upgrade on the stock. Abercrombie & Fitch was also up, gaining 8% as the long term CEO announced his retirement.
Asia was mixed with the Chinese markets bouncing back from the heavy falls of yesterday, whereas Japan fell over 2%. The Japanese weakness was largely due to a recovery in the Yen, as investors looked for safe haven assets. Interestingly Gold also rallied by 2.25% on similar fears. Fallers on the Nikkei included Kawasaki Heavy Industries down 5%, Mitsui Chemicals down 5.2% and Yokohama Rubber lost 3%. The gold rally boosted the Australian sector with Resolute up 11%, Beadell up 7.5% and Evolution up 6.5%. Gainers in China included Ningbo Port up 10% on expanding rail links into Central Asia and Jishi Media was up 10% on tax incentive measures announced by the Government.
Europe is rallying after yesterday’s sharp falls with most indices up 1%. Greece fell in Tuesday trading by 13%, the biggest one day fall since 1987. The Prime Minister will have to rely on opposition votes in next week’s Presidential elections, an outcome that could lead to fresh elections. Gainers so far include Santander up 1.24%, Airbus up 1.35% and Air Liquide up 1.30%. In the UK, there is positive news from embattled Energy giant, BG Group. The company have sold the Australian gas pipeline business for $5 billion with the proceeds being used to reduce debt levels. Tesco is rallying 1.29% after yesterday’s poor trading update and SAB Miller 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.