European stocks retreated this morning as investor confidence in the region’s economic prospects remained uncertain heading into the earnings season. The ESTX 50 (-0.44%), CAC 40 (-0.72%), Dax (-0.24%) and the Dax (-0.24%) all posted losses in early trading. LVMH fell -3.3% after posting worse than forecast quarterly sales. Burberry Group Plc lost -1.9%. Ericsson and Nokia Oyj declined at least -1.2% after US peer Juniper Networks Inc’s first quarter profit and revenue missed forecasts. Tryg A/S climbed -1.3% after reporting first quarter profit that beat estimates. Rockets Internet SE rose +2.7% after selling its stake in Lazada Group SA to Alibaba Group Holding Ltd.
US stocks declined, with gains in materials and banks countered by declines in consumer staples shares, as investors girded for the start of an earnings season expected to be gloomy. The Dow Jones Industrial Average (-0.12%), S&P 500 (-0.27%) and the Nasdaq Composite (-0.36%) all decreased. Investors were looking for cues from the first quarter earnings season, which began with Alcoa’s report after yesterday’s close. Alcoa fell more than -2% in extended trading after reporting a lower quarterly profit, with results hurt by low alumina and aluminium prices. Norfolk Southern shares fell -2.7% after Canadian Pacific said it was giving up on its $28 billion bid to buy the company. National Oilwell Varco dropped -6.1% after saying it would cut its quarterly dividend.
Asian stocks rose, led by Japanese equities as the yen retreated after a seven day rally amid the start of the US earnings season. The Nikkei 225 (+1.13%), Hang Seng (+0.30%) and the S&P/ASX 200 (+0.89%) all advanced. Mitsubishi UFJ Financial Group Inc rose +5.9% and Mitsui Financial Group Inc advanced +5.2% after the Japanese central bank reduced the portion of bank funds subject to negative interest rates. Japanese exporters Toyota Motor Corp added +3.9% and Hitachi Ltd jumped +4.4% as the yen weakened. Nomura Holdings Inc added +7.4% after a Bloomberg report said Japan’s largest brokerage plans to shut down its European equity operations after years of failing to become profitable overseas.
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.