European stocks fell as Chinese exports missed estimates and some Federal Reserve officials expressed concern over complacency about risks in the economy. The ESTX 50 (-0.64%), UK markets (-0.36%), CAC 40 (-0.44%) and the Dax (-0.41%) all posted losses in early trading. Fugro sank -17% after forecasting a drop in profit margin and writing off as much as €350 million. DNB ASA lost -3.6% after posting second quarter net income that missed analysts’ estimates. Gerresheimer AG and Tryg A/S climbed more than +2% each after posting quarterly earnings that exceeded estimates. Skanska AB lost -2.5%after saying it will scale down operations in Latin America after booking 500 million kronor in project writedowns and restructuring costs.
US stocks rebounded as optimism over corporate earnings and jobs growth overshadowed central bank concern that investors may be growing complacent about the economic outlook. The Dow Jones Industrial Average (+0.47%), S&P 500 (+0.46%) and the Nasdaq Composite (+0.63%) all advanced. Alcoa Inc jumped +5.7% after kicking off the earnings season with better than forecast results. American Airlines Group Inc rallied +4.3% after raising its margin forecast. Reynolds American Inc rose +2.2% after the Daily Mail speculated British American Tobacco may purchase the rest of the company. BAT holds about 42% of Reynolds. Bob Evans Farms Inc slid -4.4% as quarterly revenue missed estimates. The Container Store Group plunged -8.4% after reporting that quarterly earnings missed analysts’ estimates.
Asian stocks outside Japan rose as investors speculated that increasing Chinese exports and imports signalled growth in the Chinese economy. The Nikkei 225 (-0.56%) declined, while the Hang Seng (+0.27%) and the S&P/ASX 200 (+0.22%) both gained. Syrah Resources Ltd soared +28% following a report Glencore Plc has made a takeover approach for the Melbourne based company. Benesse Holdings Inc slumped -4.9% after saying as many as 20 million customer records may have been leaked. BYD Co rose +3.8% in Hong Kong after China said it will exempt new energy vehicles from sales taxes to curb pollution. Korea Electric Power Corp climbed +4.8%
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.