In the end there was little change in US equities on Tuesday, as the earlier rally faded with the decline in the Energy sector. The group declined by 1.2%, reversing a 3% gain on Monday, as investors expected high levels of stock piles. Exxon Mobil fell just over 1%, Schlumberger lost 2% and Conoco declined 0.85%. Retailers had a good day with Wal-Mart recording a 3.5% rise and Home Depot gained 4.4%. Economic data highlighted that inflation ticked up in October, closer to the Federal Reserve’s target. A takeover of Airgas by Air Liquide saw the shares gain nearly 30%, with the combined company now the largest supplier of industrial gases in the world. Biotechnology was also firmer with Amgen up 2%.
Asia is mixed with many markets seeing mild profit taking. Japan closed little changed, although the insurance sector was weaker. Investors were concerned over recent earnings figures and Tokio Marine fell 2.2% and MS&D Insurance lost 2.3%. Tohoku Electric Power declined over 7% as investors were concerned at the scale of the recent convertible financing issue. Macau related gaming stocks were struggling once again with Wynn Macau losing 3% and Sands China down 3.4% on gloomy economic forecasts for the region. In China, Citic Securities rose 3% after the company announced management changes. Investors have been concerned recently over claims of insider trading. Australia managed a small gain after spending much of the day in negative territory. Qantas led the way with a two day gain of nearly 9% after regaining investment grade status.
Europe is lower on Chinese growth fears, as the President Xi Jinping felt the economy faced ‘considerable downward pressure’. This has inevitably led to weakness in the commodity sector with BHP Billiton down 1.6%, Glencore is down 2% and Anglo American is 1.2% lower. After the takeover deal yesterday, investors are nervous that Air Liquide has overpaid and the shares are down over 4%. Other fallers include Yara International down 2.46%, Telefonica down 3.75% and LVMH is down just over 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.