European shares rose this morning after several companies reported strong earnings, although political uncertainty continued to weigh on Portuguese stocks. The ESTX 50 (+0.29%), CAC 40 (+0.24%) and the Dax (+0.25%) all posted gains in early trading, while UK markets (-0.06%) were slightly negative. Vodafone rose +2.7% after reporting better than expected acceleration in second quarter revenue growth, helping it nudge its annual expectations towards the top of its guidance. Vallourec fell more than -6% after reporting a third quarter loss against a backdrop of falling demand from is oil and gas customers and said it did not expect market conditions to improve in the short term. Land Securities Group Plc fell -2.1% after reporting lower first half earnings.
US stocks retreated as Wall Street braced for an interest rate hike and fretted about weak Chinese trade data. The Dow Jones Industrial Average (-1.00%), S&P 500 (-0.98%) and the Nasdaq Composite (-1.01%) all declined. US companies face the prospect of higher borrowing costs if the Federal Reserve raises rates next month, as is widely expected after Friday’s strong jobs report. Priceline slumped -9.6% after a weak fourth quarter profit forecast. Walt Disney gained +0.65%, while DuPont added +1% after the chemical and seeds producer said interim Chief Executive Ed Breen would stay on. Dean Foods rose +7.3% after reporting better than expected quarterly profit. After the bell, Lions Gate Entertainment posted second quarter revenue below analysts’ expectations and its stock dropped -12.2%.
Asian stocks joined a global selloff amid concern that US policy makers will end an unprecedented era of record low borrowing costs next month, and as investors awaited a Chinese inflation report. The Nikkei 225 (+0.15%) increased, while the Hang Seng (-1.43%) and the S&P/ASX 200 (-0.40%) both decreased. Hiroshima Bank Ltd surged +7.8%, leading gains among Japanese Banks, after raising its profit forecast by 25%. Joyo Bank Ltd gained +4.6% as SMBC Nikko upgraded its recommendation on the shares to “outperform” following an increase in first half earnings. Japan Display Inc climbed +7.7% as Mitsubishi UFJ Morgan Stanley analysts said earnings are faring reasonably well despite a sharp deterioration in the market for smaller LCDs, while Nomura Holdings Inc cited progress on management reforms.
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.