European stocks rose as improved corporate earnings helped stocks rebound from their biggest slump since October. The ESTX 50 (+1.56%), CAC 40 (+1.72%), Dax (+1.42%) UK markets (+0.72%) all posted gains in early trading. Nestle SA rose +2.2% after reporting first half sales growth that exceeded analyst estimates. Peugeot SA and BMW AG climbed more than +2.4% after a gauge tracking car manufacturers plunged the most since 2011 in the past two days. A.P.Moeller-Maersk A/S jumped +5.8% after its container line reported a bigger than projected profit. ThyssenKrupp AG climbed +4% as quarterly earnings beat estimates after cutting costs. TUI AG rallied +7.7% after saying profit growth will be at the upper end of its forecast. Aegon NV dropped -6.4% after saying second quarter profitability fell.
US stocks rebounded yesterday to end finish the session little changed as energy shares and Apple bounced back, offsetting concerns about a slowdown in China. The Dow Jones Industrial Average (-0.01%), S&P 500 (+0.10%) and the Nasdaq Composite (+0.15) all ended fairly flat. Apple, for which China is a key market, also reversed course after falling more than 3% earlier to its lowest since January. It ended up +1.5% and was the biggest positive factor across all three major indexes. Alibaba dropped -5.1% after hitting an all-time low of $71.03 after revenue growth slowed at China’s biggest e-commerce company. Yahoo, which has a 15% stake in Alibaba, fell -4.3%. Macy’s fell -5.1% after it also reported weak quarterly sales. After the bell, shares of Cisco Systems rose +3.7% after results beat estimates as demand recovered for its switching equipment and routers.
Asian shares rose amid reassurances from China’s central bank that there was no basis for further yuan depreciation after it devalued the currency earlier this week. The Nikkei 225 (+0.99%), Hang Seng (+0.46%) and the S&P/ASX 200 (+0.11%) all advanced. Japanese companies that rely on China for sales reversed two days of losses, with Murata Manufacturing Co gaining +1.1%. Hirose Electric Co jumped +2.4% after a broker upgraded its rating on the shares. SoftBank Group Corp slumped -2.6% after one of its biggest investments, Alibaba Group Holdings Ltd, tumbled in US trading as a weaker Chinese economy weighed on earnings. Pacific Metals Co dropped -1.6% after posting a quarterly loss.
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.