European shares rebounded, boosted by a bounce in mining and oil companies, as well as by strong sales at retailer H&M and Beiersdorf. The ESTX 50 (+0.42%), CAC 40 (+0.47%) and the Dax (+0.42%) all posted gains in early trading, while the UK markets were down -0.89%. Shares that had been hit hard during the recent oil slump posted the biggest gains this morning as traders took profit on some of their bearish bets. Transocean Ltd rose +5.1% and Galp was up +4.7%. Beiersdorf was up +4.6% after it reported a rise in 2014 sales and confirmed its full year profit target. Hennes & Mauritz gained +1.3% after reporting a bigger than expected rise in December sales. Tullow Oil Plc rose +2% after saying it will cut spending this year. Experian plc gained +4% after reporting an increase in third quarter sales. Home Retail Group Plc dropped -6.2% as third quarter comparable sales for its Argos and Homebase businesses missed analysts’ estimates.
US stocks fell as a World Bank forecast fuelled concerns about global economic weakness and copper prices sank, although a late rally in energy shares left the market well off its lows after a volatile session. The Dow Jones Industrial Average (-1.06%), S&P 500 (-0.58%) and the Nasdaq Composite (-0.48%) all retreated. Freeport McMoRan tumbled -10.9%, for the biggest percentage decline in the S&P 500, after the price of copper touched its lowest in five and a half years. Expectations for US fourth quarter earnings have fallen sharply in recent months, with growth now estimated at just 3.6% compared with an October estimate for 11.2% according to Thomson Reuters data. JPMorgan Chase & Co ended down -3.5% after reporting a 6.6% drop in quarterly profit. Wells Fargo & Co shed -1.2% after posting quarterly results.
Asian stocks gained after Japanese exporters surged as the yen weakened against the dollar and Chinese shares rallied as credit data fuelled speculation the government will support growth. The Nikkei 225 (+1.86%) and the Hang Seng (+0.99%) both increased, while the S&P/ASX 200 (-0.42%) decreased. Toyota Motor Corp, a company that gets 75% of sales abroad, rose +1.8%. China Life Insurance Co surged +9.9% in Shanghai as financial companies jumped. Woolworths Holdings Ltd climbed +4% after saying Australian units Country Road and newly acquired David Jones Ltd boosted sales. Inpex Corp climbed +2.9% after crude jumped late in US trading. Rubber producers rallied after Credit Suisse Group AG said Bridgestone would benefit from a weaker yen and lower commodity costs. Bridgestone added +6.7%, Tokyo Tire & Rubber Co gained +5.6% and Sumitomo Rubber Industries Ltd added +5.2%.
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.