European shares retreated halting yesterday’s rebound as investors awaited Germany’s ZEW survey, seeking insight on the country’s outlook and the potential impact from the crisis in Ukraine. The ESTX 50 (-0.42%), CAC 40 (-0.60%), Dax (-0.34%) and the UK markets (-0.19%) all posted losses in early trading. Tensions between Ukraine and Russia also kept investors on edge. A Russian convoy of 280 trucks carrying humanitarian aid for Ukraine amid Western warnings against using help as a pretect for an invasion. Ukraine also reported that Russia has amassed 45,000 troops on its border. The impact from tensions between the West and Russia were visible again on the earnings front, with German consumer goods group Henkel warning that earnings growth would slow in the second half of the year in part due to the frictions between Russia and Ukraine. The warning sent Henkel shares down by -2.1%. Hargreaves Lansdown retreated -2.6% after UBS started coverage of the shares with a sell rating. Ladbrokes climbed +2.6% after reporting a 2.6% increase in first half group net revenue.
US stocks rose on optimism that tension between Russia and Ukraine will ease and American airstrikes will push back militants in Iraq. The Dow Jones Industrial Average (+0.10%), S&P 500 (+0.28%) and the Nasdaq Composite (+0.70%) all advanced. MannKind Corp advanced +4.9% after Sanofi agreed to pay the company as much as $925 million for rights to the world’s only inhaled insulin. Kinder Morgan Inc rallied +9% after announcing plans to consolidate its energy businesses. Priceline Group Inc rose +2.2% after reporting better than forecast second quarter bookings. Dean Foods Co fell -3.9% after withdrawing its full year forecast amid volatile dairy market. Tesla Motors Inc added +4.5% after Deutsche Bank raised its rating on the company to “buy” from “hold”. Sysco Corp added +3.2% after reporting fiscal fourth quarter revenue that topped the average analyst estimate.
Asian stocks rose amid optimism that geopolitical risks are receding. The Nikkei 225 (+0.20%) and the S&P/ASX 200 (+1.34%) both gained, while the Hang Seng (-0.02%) was flat. GungHo Online Entertainment Inc jumped +7.8% after the game developers “Picotto Kingdom” title surged up Apple Inc’s application store in Japan. United Laboratories International Holdings Ltd advanced +5.6% in Hong Kong after forecasting higher first half net income. Tata Motors Ltd surged +6.2% after beating analysts’ estimates with a threefold jump in profit.
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.