Stock Market News (European Open) – European equities moderately lower; markets “fatigued” by N. Korean Story?
October 17, 2017 10:28 am
In Japan, the Nikkei 225 and the broader Topix advanced by 0.4% and 0.2% respectively, hitting fresh multi-year high closes, though gains were more limited relative to previous trading days. Hong Kong’s Hang Seng finished marginally higher and the Shanghai Composite edged down by 0.15%. The South Korean Kospi added 0.2%, with Australia’s S&P/ASX 200 advancing by 0.7% as the minutes of the RBA’s October meeting showed no urgency on behalf of the bank to raise rates soon.
North Korea’s UN envoy said that “a nuclear war may break out any moment” as a result of the situation in the Korean peninsula and the threat the country faces from the US. This might had weighed on sentiment during today’s trading, though it should be mentioned that similar statements in the past led to sharp falls. The fact this didn’t turn out to be the case this time round might be an indication that markets are “fatigued” with the issue, seeing such comments as mere rhetoric rather than anything of substance.
Most major European benchmarks were in the red at 0923 GMT, though losses were moderate for the most part. Stoxx 600, the pan-European index, was 0.1% lower and the blue-chip Euro Stoxx 50 down by 0.15%.
The FTSE 100 was marginally lower a little after September UK inflation figures came in as expected with CPI growing by 3.0% y/y during the month (a five-year high). BoE Governor Mark Carney will be testifying before UK lawmakers later in the day alongside newly appointed MPC members. The DAX was lower by 0.1% and the CAC 40 down by 0.2%.
Uncertainty over Brexit and the outcome of Catalonia’s bid for independence could be factors weighing on risk appetite in Europe. The Spanish IBEX 35 built on yesterday’s losses to last trade lower by 0.4%.
Pearson (up 5.95%), the UK-based publishing and education company, topped the list of Stoxx 600 (as well as the FTSE’s) biggest outperformers after the company said it anticipates its full-year operating profit to come in at the top half of its forecast range. On the downside, Merlin Entertainments (down 17.9%) was by far the worst underperformer within the Stoxx 600 (and the FTSE). The tourist attractions operator issued a warning on its full-year earnings, saying its key summer period was negatively affected by terrorist attacks in the UK.
Credit Suisse (up 1.1%) was one of the best performing stocks within the Stoxx 600 Banks sub-index (up 0.1%) after reports that hedge fund RBR Capital Advisors, which has a stake in the Swiss-based bank, is taking action to split the company into different parts in the expectation this would unlock value.
Airbus (up 2.3%) led gains within the CAC 40 after it yesterday agreed to purchase a majority stake in Bombardier’s CSeries jetliner program.
Dow Jones futures contracts were flat, with S&P 500 and Nasdaq 100 equivalents trading lower by 0.05%. The three indexes yesterday achieved record highs closes. Netflix rose in after-hours trading after releasing positive third quarter results. Goldman Sachs and Morgan Stanley will be reporting quarterly results before today’s opening bell on Wall Street.
In Japan, the Nikkei 225 and the broader Topix advanced by 0.4% and 0.2% respectively, hitting fresh multi-year high closes, though gains were more limited relative to previous trading days. Hong Kong’s Hang Seng finished marginally higher and the Shanghai Composite edged down by 0.15%. The South Korean Kospi added 0.2%, with Australia’s S&P/ASX 200 advancing by 0.7% as the minutes of the RBA’s October meeting showed no urgency on behalf of the bank to raise rates soon.
North Korea’s UN envoy said that “a nuclear war may break out any moment” as a result of the situation in the Korean peninsula and the threat the country faces from the US. This might had weighed on sentiment during today’s trading, though it should be mentioned that similar statements in the past led to sharp falls. The fact this didn’t turn out to be the case this time round might be an indication that markets are “fatigued” with the issue, seeing such comments as mere rhetoric rather than anything of substance.
Most major European benchmarks were in the red at 0923 GMT, though losses were moderate for the most part. Stoxx 600, the pan-European index, was 0.1% lower and the blue-chip Euro Stoxx 50 down by 0.15%.
The FTSE 100 was marginally lower a little after September UK inflation figures came in as expected with CPI growing by 3.0% y/y during the month (a five-year high). BoE Governor Mark Carney will be testifying before UK lawmakers later in the day alongside newly appointed MPC members. The DAX was lower by 0.1% and the CAC 40 down by 0.2%.
Uncertainty over Brexit and the outcome of Catalonia’s bid for independence could be factors weighing on risk appetite in Europe. The Spanish IBEX 35 built on yesterday’s losses to last trade lower by 0.4%.
Pearson (up 5.95%), the UK-based publishing and education company, topped the list of Stoxx 600 (as well as the FTSE’s) biggest outperformers after the company said it anticipates its full-year operating profit to come in at the top half of its forecast range. On the downside, Merlin Entertainments (down 17.9%) was by far the worst underperformer within the Stoxx 600 (and the FTSE). The tourist attractions operator issued a warning on its full-year earnings, saying its key summer period was negatively affected by terrorist attacks in the UK.
Credit Suisse (up 1.1%) was one of the best performing stocks within the Stoxx 600 Banks sub-index (up 0.1%) after reports that hedge fund RBR Capital Advisors, which has a stake in the Swiss-based bank, is taking action to split the company into different parts in the expectation this would unlock value.
Airbus (up 2.3%) led gains within the CAC 40 after it yesterday agreed to purchase a majority stake in Bombardier’s CSeries jetliner program.
Dow Jones futures contracts were flat, with S&P 500 and Nasdaq 100 equivalents trading lower by 0.05%. The three indexes yesterday achieved record highs closes. Netflix rose in after-hours trading after releasing positive third quarter results. Goldman Sachs and Morgan Stanley will be reporting quarterly results before today’s opening bell on Wall Street.
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