European stocks were little changed as investors awaited Federal Reserve Chair Janet Yellen’s semi-annual testimony. The ESTX 50 (-0.32%), CAC 40 (-0.07%) and the Dax (-0.14%) all posted losses in early trading, while the UK markets (+0.20%) gained. Software AG sank -14% after saying the margin on full year operating profit may be as little as 26%. It had previously estimated 26.8%. The company cited project delays. Draegerwerk slid -10% after lowering its 2014 sales growth estimate to 2% – 4% from 3% – 6%. The company also forecast an annual margin on earnings before interest and taxes of 4.5% to 6.5%, citing a strong euro, reduced business from Russia and slower US demand. Hennes & Mauritz AB rose +2% after saying sales increased 12% in June, exceeding the 9.4% gain that analysts had estimated in a SME Direkt survey. Fresnillo Plc led gains in the UK, rising +2.1%. BG Group Plc and EasyJet Plc added more than +1% each.
US stocks advanced as Citigroup Inc rallied on better than forecast earnings and internet shares rebounded. The Dow Jones Industrial Average (+0.66%), S&P 500 (+0.48%) and the Nasdaq Composite (+0.56%) all gained. Citigroup jumped +3% on better than estimated trading revenue and lower credit costs helped second quarter profit beat analysts’ forecasts. Apple climbed +1.3% after Barclays raised its recommendation on the technology company top “overweight” from “hold”. Netflix, which tumbled -6.9% last week, rebounded +2.9%. Pandora Media Inc increased +2.7%. LinkedIn Corp, Facebook and Amazon.com Inc each climbed at least +2%. TripAdvisor Inc fell -0.7% after Nomura Holdings Inc cut its rating for the company to “neutral” from “buy”. Perrigo Co rose +8.7%, the most in the S&P 500, after Israel’s Globes said the company was seeking a sale.
Asian stocks rose after several companies reported better than forecast earnings, boosting confidence that earnings growth can sustain further gains in shares. The Nikkei 225 (+0.64%), Hang Seng (+0.44%) and the S&P/ASX 200 (+0.02%) all posted gains. ZTE jumped +7.7% in Hong Kong after revising up its first half profit forecast to a range of 1 billion yuan to 1.15 billion yuan, from 800 million yuan to 1 billion yuan announced in April. Cape Lambert Resources Ltd soared +49% after the iron-ore explorer reached a settlement with the Metallurgical Corporation of China over a payment dispute. Zoomlion Heavy Industry Science and Technology Co fell -3.3% in Hong Kong after saying it expects first half profit will plunge by about 60% to 70% from a year earlier.
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.