European were mixed this morning following the Federal Reserve’s comments and despite a batch of strong corporate earnings reports. The ESTX 50 (-0.08%), UK markets (-1.06%), CAC 40 (-0.21%) and the Dax (-0.06%) all fluctuated between losses and gains in early trading. Rio Tinto Group and BHP Billiton Ltd led a gauge of miners to the worst performance of 19 European industry groups, falling at least -3.3% after Liberum Capital cut their ratings to sell. Barclays Plc dropped -4.9% after saying third quarter profit fell 10%, missing estimates. Royal Dutch Shell Plc lost -1.1% after reporting its biggest net loss in at least a decade. Bayer rose +1.1% after posting profit that beat analyst estimates. Deutsche Bank AG slid -3.6% after posting its biggest overall three month loss in at least a decade.
US stocks rose as the Federal Reserve gave a vote of confidence in the US economy by signalling a December interest rate hike was still on the table. The Dow Jones Industrial Average (+1.13%), S&P 500 (+1.18%) and the Nasdaq Composite (+1.30%) all advanced. The Fed left rates unchanged, as expected, and in a direct reference to its next meeting, put a December rate hike firmly in play. It also downgraded global economic headwinds in its statement. A +4.1% gain in Apple’s shares also helped support indexes a day after stronger than expected results. Apple sold 48 million iPhones in the latest quarter and posted a near doubling of revenue in China, allaying concerns about its business in the world’s second largest economy. Twitter fell -1.5% while Akamai Technologies dropped -16.7% after both reported disappointing results. After the bell, GoPro dropped -15.2% following its results.
Asian stocks were mixed after the Federal Reserve signalled it’s prepared to raise rates as soon as December. The Nikkei 225 (+0.17%) gained, while the Hang Seng (-0.60%) and the S&P/ASX 200 (-1.28%) both decreased. Among the most actively traded stocks in Hong Kong were Gome, up +12.1%, Hong Kong Education International Investments up +12.4% and CCT Land unchanged. Nomura Holdings dropped -2.9% and Daiwa Securities Group lost -2.7% after each reported weaker than expected July – September profits. Precision Instruments added +3.1%, lifted by Hoya Corp which climbed +6.9% after announcing a rise in quarterly profits and a plan to buy back 14 million shares.
Morning Spread 8th March 2017 European shares traded flat this morning, the modest moves masking significant results driven games by several companies on a bust day for European earnings.
Morning Spread 2nd November 2016 Asian stocks followed global equities lower despite gauges of manufacturing in China topping estimates and the Bank of Japan maintained its record stimulus program.
Morning Spread 1st November 2016 Asian stocks were mixed as declines in oil prices dragged energy shares lower and investor anxiety grew over next week’s US presidential election.
Morning Spread 28th October 2016 Asian stocks fell as oil explorers pushed down Hong Kong gauges, while investors digested earnings from several companies.
Morning Spread 27th October 2016 US stocks were mixed following the release of earnings from several companies.
Morning Spread 24th October 2016 US stocks were little changed as a record day for Microsoft and earnings from McDonald’s helped offset a fall in energy and healthcare shares.
Morning Spread 19th October 2016 Asian shares rose as a barrage of Chinese data confirmed the economy had stabilised on the back of government spending and a hot housing market, even if worries about debt continue to mount.
Morning Spread 10th October 2016 Asian stocks were mixed following the second US presidential debate between Hilary Clinton and Donald Trump.
Morning Spread 5th October 2016 Most Asian stocks outside Japan slid on concern central banks will reduce stimulus, while the Nikkei climbed after the yen weakened.
Morning Spread 27th September 2016 Asian stocks advanced with investors viewing Democratic candidate Hillary Clinton as having gotten the upper hand in the first US presidential debate.