Stock Market News (European Open) – FTSE suffers on sterling rebound; Japanese benchmarks at multi-year highs
October 13, 2017 10:28 am
In Asia, the Nikkei 225 added 1.0% to close this week’s trading at its highest since 1996 with the Topix, Japan’s broader equity gauge, gaining 0.5% to finish the week at its highest since 2007. Hong Kong’s Hang Seng rose by 0.1% and the Shanghai Composite advanced by 0.2%. Australia’s S&P/ASX 200 added 0.3% and the South Korean Kospi retreated by 0.05%.
Today there were reports of a small magnitude earthquake near the area where North Koreaconductednuclear testsin the past, raising concerns for yet another missile test. South Korea’s weather agencyattributed this though to a natural phenomenon with shaking in the area also being of a much smaller magnitude relative to September’s hydrogen-bomb test by North Korea.
Despite Chinese exports’ growth falling short of expectations, they still rose solidly, while imports comfortably beating analysts’ forecasts, perhaps boosting sentiment across the globe as demand from the world’s second largest economy is looking strong.
In European markets, at 0932 GMT the pan-European Stoxx 600 traded 0.3% higher, hitting a near four-month high of 391.66, and the blue-chip Euro Stoxx 50 was up by 0.1%.
The export-heavy FTSE 100 was down by 0.4% as sterling advanced heftily relative to majors including the dollar and the euroafter business newspaper Handelsblatt reported that Michel Barnier, the EU’s chief negotiator for Brexit, may offer the UK a two-year transitional period to stay in the single market given that certain obligations are met. The UK blue-chip index yesterday achieved a record-high close. The German DAX was 0.1% higher, having earlier hit a fresh all-time high, and the French CAC 40 was flat.
Provident Financial, the sub-prime lender which up to recently was a FTSE 100 component stock, was by far the biggest gainer within the Stoxx 600 after it made talk of a recovery plan for its home credit business. The firm’s stock last traded up by 15.3%. On the downside, GKN plc (down 7.7%), the British multinational automotive and aerospace components company, was the worst underperformer within the Stoxx 600 (as well as the FTSE 100) following a profit warning by the firm.
Chemical,pharmaceuticalandlife sciencescompany Bayer (up 1.2%) was one of the best performing stocks within the DAX after chemical company BASF (down 0.5% and also a DAX component stock) agreed to purchase sizable portions of its seed and herbicide businesses as it (Bayer) attempts to convince regulatory authorities to approve its planned acquisition of US-based biotechnology company Monsanto.
Man Group (up 3.1%) was performing strongly after the UK-based hedge fund reported a rise in assets under management (AUM) in the third quarter on the back of positive returns and fresh inflows into the firm’s funds.
Dow Jones futures were marginally higher, with contracts on the S&P 500 and Nasdaq Composite being unchanged. Yesterday US benchmarks were dragged lower by declines in JPMorgan Chase and Citigroup, in part due to sharp declines in the two companies’ revenue from trading. The two banks finished yesterday’s trading lower by 0.9% and 3.4% respectively. DirecTV owner AT&T declined sharply (down 6.1%), also acting as a drag on indices, after losing subscribers during the third quarter.
In Asia, the Nikkei 225 added 1.0% to close this week’s trading at its highest since 1996 with the Topix, Japan’s broader equity gauge, gaining 0.5% to finish the week at its highest since 2007. Hong Kong’s Hang Seng rose by 0.1% and the Shanghai Composite advanced by 0.2%. Australia’s S&P/ASX 200 added 0.3% and the South Korean Kospi retreated by 0.05%.
Today there were reports of a small magnitude earthquake near the area where North Korea conducted nuclear tests in the past, raising concerns for yet another missile test. South Korea’s weather agency attributed this though to a natural phenomenon with shaking in the area also being of a much smaller magnitude relative to September’s hydrogen-bomb test by North Korea.
Despite Chinese exports’ growth falling short of expectations, they still rose solidly, while imports comfortably beating analysts’ forecasts, perhaps boosting sentiment across the globe as demand from the world’s second largest economy is looking strong.
In European markets, at 0932 GMT the pan-European Stoxx 600 traded 0.3% higher, hitting a near four-month high of 391.66, and the blue-chip Euro Stoxx 50 was up by 0.1%.
The export-heavy FTSE 100 was down by 0.4% as sterling advanced heftily relative to majors including the dollar and the euro after business newspaper Handelsblatt reported that Michel Barnier, the EU’s chief negotiator for Brexit, may offer the UK a two-year transitional period to stay in the single market given that certain obligations are met. The UK blue-chip index yesterday achieved a record-high close. The German DAX was 0.1% higher, having earlier hit a fresh all-time high, and the French CAC 40 was flat.
Provident Financial, the sub-prime lender which up to recently was a FTSE 100 component stock, was by far the biggest gainer within the Stoxx 600 after it made talk of a recovery plan for its home credit business. The firm’s stock last traded up by 15.3%. On the downside, GKN plc (down 7.7%), the British multinational automotive and aerospace components company, was the worst underperformer within the Stoxx 600 (as well as the FTSE 100) following a profit warning by the firm.
Chemical, pharmaceutical and life sciences company Bayer (up 1.2%) was one of the best performing stocks within the DAX after chemical company BASF (down 0.5% and also a DAX component stock) agreed to purchase sizable portions of its seed and herbicide businesses as it (Bayer) attempts to convince regulatory authorities to approve its planned acquisition of US-based biotechnology company Monsanto.
Man Group (up 3.1%) was performing strongly after the UK-based hedge fund reported a rise in assets under management (AUM) in the third quarter on the back of positive returns and fresh inflows into the firm’s funds.
Dow Jones futures were marginally higher, with contracts on the S&P 500 and Nasdaq Composite being unchanged. Yesterday US benchmarks were dragged lower by declines in JPMorgan Chase and Citigroup, in part due to sharp declines in the two companies’ revenue from trading. The two banks finished yesterday’s trading lower by 0.9% and 3.4% respectively. DirecTV owner AT&T declined sharply (down 6.1%), also acting as a drag on indices, after losing subscribers during the third quarter.
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