Stock Market News (European Open) – Equity markets in recovery mode; US House of Representatives votes on tax bill
November 16, 2017 10:25 am
In Asia, major benchmarks were posting gains for the most part during today’s trading, putting a halt to losses from previous sessions. The Japanese Nikkei 225 and Topix indices added 1.5% and 1.0% respectively. All but one industry sector – energy – finished higher in the Topix, Japan’s broader gauge of equity performance. Hong Kong’s Hang Seng Index advanced 0.6% while the Shanghai Composite edged lower by 0.1%. Australia’s S&P/ASX 200 gained 0.2%.
The PBOC proceeded with another cash injection into the financial system today – its biggest since the start of the year – in an effort to boost liquidity. The process of reverse repos was used by the Chinese central bank.
In Europe, the picture was broadly positive during morning trading, though gains were contained for the most part. At 0925 GMT the pan-European Stoxx 600 traded higher by 0.4%. The gauge yesterday recorded its seventh consecutive down day, closing at its lowest since September 18. The blue-chip Euro Stoxx 50 was up by 0.5%.
All Stoxx 600 industry sectors were on the rise with utilities, technology and consumer cyclicals leading the gains.
The UK’s FTSE 100 was marginally lower, while the German DAX and French CAC 40 were both up by 0.5%. The Italian FTSE MIB underperformed relative to its peers, being up by a mere 0.05%. Year-to-date, it is up by 15.25% and remains the best performing major European blue-chip index.
French-based industrial group Bouygues (up 4.3%) led gains in the Stoxx 600 and the CAC 40 on a Q3 results beat and upgraded guidance for 2017.
On the downside, UK-based multinational automotive and aerospace components company GKN plc (down 7.8%) was the worst underperformer within the Stoxx 600 and the FTSE 100 after announcing an additional write-off in the amount of 80-130 million British pounds in light of the issues at its Alabama plant in the US and ousting its CEO designate Kevin Cummings. Broker Panmure Gordon also cut its price target on the company’s stock price.
Multinational private equity and venture capital firm 3i Group outperformed in the FTSE after a rise in its net asset value per share (NAV per share) during H1. The investment company is also projecting a strong H2.
Main Wall Street indices again posted losses yesterday, closing at multi-week lows. Indicatively, the S&P declined by 0.55%, finishing at its lowest in nearly three weeks. Two Senate Republicans criticized tax reform plans, dampening sentiment. Senate Republicans cannot afford to lose more than two votes to pass the relevant legislation. The House of Representatives will be voting on the tax bill later today with expectations being that Republicans will vote in favor of the bill.
Dow, S&P 500 and Nasdaq 100 futures were projecting a higher open on Wall Street being up by 0.3%, 0.3% and 0.4% respectively.
In Asia, major benchmarks were posting gains for the most part during today’s trading, putting a halt to losses from previous sessions. The Japanese Nikkei 225 and Topix indices added 1.5% and 1.0% respectively. All but one industry sector – energy – finished higher in the Topix, Japan’s broader gauge of equity performance. Hong Kong’s Hang Seng Index advanced 0.6% while the Shanghai Composite edged lower by 0.1%. Australia’s S&P/ASX 200 gained 0.2%.
The PBOC proceeded with another cash injection into the financial system today – its biggest since the start of the year – in an effort to boost liquidity. The process of reverse repos was used by the Chinese central bank.
In Europe, the picture was broadly positive during morning trading, though gains were contained for the most part. At 0925 GMT the pan-European Stoxx 600 traded higher by 0.4%. The gauge yesterday recorded its seventh consecutive down day, closing at its lowest since September 18. The blue-chip Euro Stoxx 50 was up by 0.5%.
All Stoxx 600 industry sectors were on the rise with utilities, technology and consumer cyclicals leading the gains.
The UK’s FTSE 100 was marginally lower, while the German DAX and French CAC 40 were both up by 0.5%. The Italian FTSE MIB underperformed relative to its peers, being up by a mere 0.05%. Year-to-date, it is up by 15.25% and remains the best performing major European blue-chip index.
French-based industrial group Bouygues (up 4.3%) led gains in the Stoxx 600 and the CAC 40 on a Q3 results beat and upgraded guidance for 2017.
On the downside, UK-based multinational automotive and aerospace components company GKN plc (down 7.8%) was the worst underperformer within the Stoxx 600 and the FTSE 100 after announcing an additional write-off in the amount of 80-130 million British pounds in light of the issues at its Alabama plant in the US and ousting its CEO designate Kevin Cummings. Broker Panmure Gordon also cut its price target on the company’s stock price.
Multinational private equity and venture capital firm 3i Group outperformed in the FTSE after a rise in its net asset value per share (NAV per share) during H1. The investment company is also projecting a strong H2.
Main Wall Street indices again posted losses yesterday, closing at multi-week lows. Indicatively, the S&P declined by 0.55%, finishing at its lowest in nearly three weeks. Two Senate Republicans criticized tax reform plans, dampening sentiment. Senate Republicans cannot afford to lose more than two votes to pass the relevant legislation. The House of Representatives will be voting on the tax bill later today with expectations being that Republicans will vote in favor of the bill.
Dow, S&P 500 and Nasdaq 100 futures were projecting a higher open on Wall Street being up by 0.3%, 0.3% and 0.4% respectively.
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