Stock Market News (European Open) – European stocks edge slightly lower; Japanese equities reverse gains; Nvidia eyed
November 9, 2017 10:29 am
In an unusual day for Japanese equities, the Nikkei 225 finished the day lower by 0.2% and the Topix down by 0.25%. Earlier in the day, the Nikkei and the Topix added 2.0% and 1.5% at their highest, with the former exceeding the 23,000 mark for the first time since January 1992. While it wasn’t clear what prompted the reversal, some attributed it to technical trading. It could had also come – at least in part – on the back of profit-taking. Despite the decline, both benchmarks continue trading around multi-decade highs. Hong Kong’s Hang Seng rose 0.8% to finish at its highest in nearly 10 years with the Shanghai Composite adding 0.4% to stand at a near two-year high close. Australia’s S&P/ASX 200 advanced by 0.55% to record its highest close since early 2008.
Trump is continuing his Asian tour and while speaking in Beijing, the US President once again called for action against North Korea.
In Europe, the pan-European Stoxx 600 traded 0.15% lower relative to yesterday’s close at 0920 GMT. The blue-chip Euro Stoxx 50 was lower by 0.1%.
The UK’s FTSE 100 was down by 0.15%, while the German DAX and the French CAC 40 both traded lower by 0.1%. The Italian FTSE MIB outperformed (up 0.3%) after yesterday being weighed by banking stocks on fears having to do with non-performing loans. Year-to-date, the Italian index is up by 19.0%, the most among major blue-chip indices in Europe.
Burberry (down 11.9%) was the FTSE’s worst underperformer and one of the biggest losers within the Stoxx 600 after its first-half results disappointed investors. The luxury brand also announced a change in strategy, planning to become more upmarket by focusing on leather goods and fashion and reducing sales to non-luxury stores.
Sainsbury’s (down 2.7%) was another notable FTSE decliner. The supermarket chain reported a fall in first-half profits and declining Q2 sales growth.
Banca Popolare dell’Emilia Romagna (BPER Banca – up 11.4%) led gains within the Stoxx 600 and the FTSE MIB after it said its core capital had strengthened in the third quarter, ruling out turning to investors to raise funds.
Commerzbank (up 2.7%) was the best performing stock within the DAX while making the list of top-10 performers within the Stoxx 600 after swinging to profit in Q3. It also said it will beat the target for 2017 growth in customer numbers.
The Dow, S&P 500 and Nasdaq Composite all closed at record highs on the one-year anniversary of last year’s US presidential election. Gains though were limited. The Nasdaq rose the most, adding almost 0.4%.
Tax reforms remain front and center of investor attention in the US. A US Senate tax-cut bill is expected to be unveiled today. However, according to the Senate Finance Committee, today’s release would constitute a “conceptual mark” rather than being a detailed legislative text.
Dow, S&P 500 and Nasdaq 100 futures all last traded lower though by less than 0.15%.
Tech company Nvidia will be reporting quarterly results after today’s market close in the US.
In an unusual day for Japanese equities, the Nikkei 225 finished the day lower by 0.2% and the Topix down by 0.25%. Earlier in the day, the Nikkei and the Topix added 2.0% and 1.5% at their highest, with the former exceeding the 23,000 mark for the first time since January 1992. While it wasn’t clear what prompted the reversal, some attributed it to technical trading. It could had also come – at least in part – on the back of profit-taking. Despite the decline, both benchmarks continue trading around multi-decade highs. Hong Kong’s Hang Seng rose 0.8% to finish at its highest in nearly 10 years with the Shanghai Composite adding 0.4% to stand at a near two-year high close. Australia’s S&P/ASX 200 advanced by 0.55% to record its highest close since early 2008.
Trump is continuing his Asian tour and while speaking in Beijing, the US President once again called for action against North Korea.
In Europe, the pan-European Stoxx 600 traded 0.15% lower relative to yesterday’s close at 0920 GMT. The blue-chip Euro Stoxx 50 was lower by 0.1%.
The UK’s FTSE 100 was down by 0.15%, while the German DAX and the French CAC 40 both traded lower by 0.1%. The Italian FTSE MIB outperformed (up 0.3%) after yesterday being weighed by banking stocks on fears having to do with non-performing loans. Year-to-date, the Italian index is up by 19.0%, the most among major blue-chip indices in Europe.
Burberry (down 11.9%) was the FTSE’s worst underperformer and one of the biggest losers within the Stoxx 600 after its first-half results disappointed investors. The luxury brand also announced a change in strategy, planning to become more upmarket by focusing on leather goods and fashion and reducing sales to non-luxury stores.
Sainsbury’s (down 2.7%) was another notable FTSE decliner. The supermarket chain reported a fall in first-half profits and declining Q2 sales growth.
Banca Popolare dell’Emilia Romagna (BPER Banca – up 11.4%) led gains within the Stoxx 600 and the FTSE MIB after it said its core capital had strengthened in the third quarter, ruling out turning to investors to raise funds.
Commerzbank (up 2.7%) was the best performing stock within the DAX while making the list of top-10 performers within the Stoxx 600 after swinging to profit in Q3. It also said it will beat the target for 2017 growth in customer numbers.
The Dow, S&P 500 and Nasdaq Composite all closed at record highs on the one-year anniversary of last year’s US presidential election. Gains though were limited. The Nasdaq rose the most, adding almost 0.4%.
Tax reforms remain front and center of investor attention in the US. A US Senate tax-cut bill is expected to be unveiled today. However, according to the Senate Finance Committee, today’s release would constitute a “conceptual mark” rather than being a detailed legislative text.
Dow, S&P 500 and Nasdaq 100 futures all last traded lower though by less than 0.15%.
Tech company Nvidia will be reporting quarterly results after today’s market close in the US.
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