US equities added gains in yesterday’s trading with both the Dow Jones and the S&P 500 indices reaching new all-time highs. The October Producer Price Index rose 0.2%, whilst Home Builder sentiment beat market expectations. There was also optimism from the Japanese election announcement and the delay in the sales tax implementation. Home Depot reported strong figures but the stock succumbed to profit taking and fell just over 2%. Other fallers included Tyco International down 1.54%, Transocean was down 1.33% and Microsoft lost 1.45%. Improved sentiment spread into the potash sector with Mosaic up 3.3% and Potash Corporation gained 4.76%, whilst Compass Minerals was up just over 2%.
In Asia there was widespread weakness as investors struggled with a stronger US $ and some lack of buying following the Japanese dissolution of parliament. The Yen fell to the lowest level in nearly eight years. In Hong Kong, the energy sector was weaker with CNOOC falling 0.9%, Kunlun was down 2.9% and PetroChina fell 0.8%. In Japan, OKI Electric was a stand out mover, up 6% on a bullish report from the broker, Goldman Sachs. In the automobile supplies sector, Takata dropped 7.5% after the US authorities recalled the company’s airbags, claiming they put lives at risk. In Australia, there was some relief as Gold futures climbed to a two week high with Northern Star up 6.5% and Medusa Mining up 5.7%.
Europe is generally weaker with Areva in France plunging 16%, as the power generation company abandons any forecasts for the next two years. In the Oil Services sector, Technip is down nearly 2% as the broker, Citigroup, sees exploration budgets falling by at least 10% in 2015. In the UK, the Mining sector is weak with Anglo American down 1.87%, BHP Billiton is down 1.75% and Rio Tinto is down 1.66%. Royal Mail has released disappointing figures which point to ever increasing levels of competition and the shares are down 8%. Gainers include Telecom Italia up 1.55%, Den Norske Bank is up 1.88% and KPN is up 1.04%.
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.