European shares fell this morning, following losses overnight in Asia. The ESTX 50 (-1.09%), UK markets (-0.70%), Dax (-1.07%) and the CAC 40 (-1.46%) all posted losses in early trading. SABMiller rose +9% and Anheuser-Busch was up +3.8% after it was reported that SABMiller said it had indicated to AB InBev that its board would be prepared to accept the offer and said it had asked for a two week extension to October 28th of a deadline set for its rival to announce a firm intention to bid. SAP was +4.8% higher after reporting a 19% rise in third quarter operating profit, beating the most optimistic analyst estimate. LVMH fell -3% after posting a mixed set of third quarter revenue figures that revealed a strong rebound in cognac sales, particularly in China, but a slowdown in its key fashion and leather business.
US advanced as gains in utilities offset a retreat in energy shares, as investors remained cautious about third quarter corporate results. The Dow Jones Industrial Average (+0.28%), S&P 500 (+0.13%) and the Nasdaq Composite (+0.17%) all increased. This week brings results from some of the biggest US banks, among other companies, and investors are eyeing a projected 4.8% year-on-year decline in third quarter S&P 500 earnings, according to Thomson Reuters data. That would be the worst earnings season in six years. Eli Lilly’s shares fell -7.8%, its biggest single day percentage decline in seven years, after saying it was scrapping an experimental heart treatment. EMC’s shares were up +1.8% after Dell said it would buy the data storage company in a $67 billion deal.
Asian stocks dropped as Japanese shares slipped after a holiday and investors awaited China’s trade data. The Nikkei 225 (-1.11%), Hang Seng (-0.79%) and S&P/ASX 200 (-0.57%) all retreated. Fast Retailing Co sank -3.7%, extending Friday’s 9.8% drop after forecasting profit that missed estimates. Toyota Motor Corp and Honda Motor Co sank at least -2.5% after Jefferies Group LLC lowered its rating on both company’s shares. Sharp Corp jumped +6.5% after a report it may get 200 billion yen in investment from a state backed fund. Inpex Corp slumped -3.4%. Among the most active Chinese stocks were China Nuclear Power up +1.6%, China Shipbuilding down -0.1% and Meiyan Jixiang up +0.2%.
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.