European shares fell as investors weighed corporate earnings amid indications the region’s economy is slowing. The ESTX 50 (-0.57%), UK markets (-1.07%), CAC 40 (-0.48%) and the Dax (-0.40%) all posted losses in early trading. Shire tumbled -26% after AbbVie Inc said its board will reconsider a recommendation to shareholders to back its purchase of the company. Possible merger targets AstraZeneca Plc and Smith & Nephew Plc also fell more than -3% each. ASML Holding NV rose +2% after predicting growth early next year. Danone SA climbed +4.8% after posting better than expected third quarter sales. Statoil fell -2.9% after its CEO resigned to new head of BG Group Plc. BG rose +1%.
A rebound in US stocks faded late in the session as energy shares slid with the price of oil, snuffing out most of an earlier rally led by industrial companies, airlines and banks. The S&P 500 (+0.32%) and the Nasdaq Composite (+0.32%) both increased, while the Dow Jones Industrial Average (-0.04%) decreased. Crown Castle International Corp rose +3% after activist investor Corvex Management LP said the company should either increase its dividend payout ratio or boost its leverage ratio and buy back some stock. Citigroup Inc climbed +3.2% after saying profit rose 6.6%, beating estimates as bond trading revenue climbed and lending improved. JPMorgan Chase & Co slipped -0.3%, paring an earlier -3.6% tumble, after reporting a third quarter profit as a surprise gain in fixed income trading helped boost revenue and legal costs narrowed. Wells Fargo & Co slipped -2.7% after posting a third quarter profit that matched analysts’ estimates as mortgage banking revenue fell from the previous quarter.
Asian stocks rose as Japanese equities climbed on a weaker yen after US shares rallied from their biggest three day decline since 2011. The Nikkei 225 (+0.92%), Hang Seng (+0.43%) and the S&P/ASX 200 (+0.73%) all advanced. ANA Holdings gained +4.8%, Skymark Airlines Inc jumped +9% and Japan Airlines Inc jumped +6.3% after Morgan Stanley raised its rating on the airline sector to “in-line”. Japan Petroleum sank -1.9% and Inpex Corp dropped -1.3% as West Texas Intermediate crude oil traded near the lowest price in more than two years as the International Energy Agency forecast the slowest consumption growth since 2009. Sun Hung Kai gained +1.6%, while Henderson Land Development Co rose +1.6% after Barclays Plc said Hong Kong property shares may return to pre-protest levels if investors believe economy and local consumption can fully recover. Central China Securities surged +13% after saying the brokerage won approval to offer services for cross-border equity trading from the Shanghai bourse.
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.