Japan’s shares dropped, and China’s floated higher on a day when both countries saw blockbuster IPOs, while investors punished Starbucks, McDonald’s, and Deutsche Bank in early trading.
- S&P 500 Futures: 5,884.75 ⬇️ down 0.13%
- S&P 500: 5,851.20 ⬇️ down 0.05%
- Nasdaq Composite: 18,573.13 ⬆️ up 0.18%
- Dow Jones Industrial Average: 42,924.89 ⬇️ down 0.02%
- STOXX Europe 600: 519.30 ⬇️ down 0.21%
- CSI 300: 3,973.21 ⬆️ up 0.39%
- Nikkei 225: 38,104.86 ⬇️ down 0.80%
- Bitcoin: $66,287.21 ⬇️ down 1.64%
China: Shares ease higher following big stimulus recommendation
China shares rose slightly Wednesday after a top state-backed think tank urged the government to issue 2 trillion yuan ($281 billion) of special bonds to create a market stabilization fund to ease debt pressures and improve market confidence. The CSI 300, which tracks the 300 top stocks on the Shanghai and Shenzhen exchanges, rose 0.39%, while Hong Kong’s Hang Seng rose 1.27% as shares of drinks maker China Resources Beverage jumped 14% in their trading debut in the year’s second biggest IPO in the city.
Japan: Shares fall despite blockbuster Tokyo Metro IPO
The Nikkei 225 fell 0.80%, led downward by a 4.9% drop in human resources and staffing firm Recruit Holdings. The day’s market news was dominated by the blockbuster IPO of subway operator Tokyo Metro, the largest in Tokyo. In the biggest debut since SoftBank’s mobile unit in 2018. Priced at the top of range after being reportedly 15-time oversubscribed, the shares closed with a 45% gain after popping up to 47%.
Europe: Shares slip as court rules against Deutsche Bank
European stocks slid early Wednesday on a busy day for Deutsche Bank, which reported earnings—beating expectations as it returned to profit in Q3—and lost a regional court case to shareholders who said it underpaid in its 2018 acquisition of Postbank. Shares were down 2.9% in morning trading. Utility stocks were a rare bright spot in the Stoxx Europe 600, which was off 0.21% at 11 a.m. CET. The FTSE 100 was down 0.39%.
U.S. premarket slide as investors punish Starbucks and McDonalds
U.S. markets were down in premarket trading Wednesday, a day after they saw minimal changes as General Motors surged 10.4% on strong earnings offset a steep drop in GE Aerospace shares. McDonald’s shares were off 6% in early trading after its Quarter Pounders were linked to a deadly E. coli outbreak in 10 states. Starbucks shares fell 5.2% after new CEO Brian Niccol tossed its 2025 financial guidance amid plunging store traffic.
And earnings season continues…
It’s a huge earnings week, with 112 of the S&P 500 reporting. Tesla, Coca-Cola, IBM and Boeing report today.