Global markets were mixed amid speculation ahead of expected announcements from President Trump regarding budget and tax policies.
Trump anticipation caused US markets to waiver, with the S&P 500 and the Dow Jones Industrial Average little changed; at the time of writing both indices are down less than -0.1%. Trump is due to release a statement around the budget, in which it is expected he will increase spending on defence forces and infrastructure.
Hertz (HTZ) declined -1.2% in a run up to its earnings announcement after the close. Lions Gate (LGF) declined by a modest -0.7% after a mix up at the Oscars. Sothebys (BID) surged +13.7% as earnings beat estimates. Illumina (ILMN) climbed +2% following an upgrade to analyst recommendations. Berkshire Hathaway (BRK) increased +0.4% after releasing results over the weekend.
The Stoxx Europe 600 fell -0.3%, declining into its longest slump since the week before the US election, as investors question whether a rally that pushed equities to a 14-month high went too far. Deutsche Borse (DB11) slumped -3.4% while London Stock Exchange (LSE) declined -1.7% after their planned merger was disrupted. Direct Line Insurance (DLG) slid -7.6% after announcing that it expect decreases in profits. PostNL (PNL) tumbled -8.1% after reporting a -25% decrease in 4Q16 underlying operating profit. Speculation around Trump’s announcement of the budget caused building and materials companies to gain, such as LafargeHolcim (LHN), which rose +1.4%. Bunzl (BNZL) gained +3.4% after reporting a gain in first-half pre-tax profits.
The UK’s FTSE 100 increased +0.1% as the pound fell following a resurgence of rumours that Scotland will call for a second independence referendum.
The MSCI Asia Pacific Index declined -0.6%. KB Financial Group (105560) decreased -3.9%, leading a drop in South Korean banks. Asian insurer AIA Group (1299) climbed +2.8% on the back of analyst upgrades.
Japan’s Topix inched down by -0.1%. With Mitsubishi UFJ Financial (8306) and Softbank Group (9984) decreasing -2.6% and -2.4% respectively.
The ASX 200 fell -0.3%. Woodside Petroleum (WPL) declined -1.7% on speculation Shell may sell down its stake.
WTI crude rose +1.83% to US$54.5 while gold rose +0.3% to US$1,260.7. Iron ore jumped US$1.83 to US$92.30/MT.
GNE 1H17 Result
NZR FY16 Result
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