European shares retreated this morning, weighed down by industrial stocks as several of them lowered their outlook for 2016. The ESTX 50 (-0.92%), CAC 40 (-0.80%), Dax (-0.90%) and the UK markets (-0.30%) all posted losses in early trading. Schindler Holding AG fell -2.6% after it cut the top end of its revenue growth outlook for the year as increasing uncertainty in the Chinese construction market and the recession in Brazil continues to hurt the company. Rotork fell -3.1% after HSBC cut the company to “reduce” from “hold”. Geberit rose +4.4% after it beat expectations with its second quarter results and struck a confident tone for its outlook moving forward. Antofagasta Plc climbed +3.2% after saying first half earnings rose and announcing an interim dividend of 3.1 cents a share.
All three major US stock indexes ended at all-time highs on Monday, extending their climb of the past few weeks as the dollar’s weakness boosted commodity related shares. The Dow Jones Industrial Average (+0.32%), S&P 500 (+0.28%) and the Nasdaq Composite (+0.56%) all increased. The S&P 500’s earnings recession that began in the third quarter of 2015 is on track to end in the fourth quarter. Estimates show profit growth of 8.3% for S&P 500 earnings in the fourth quarter. Xylem rose +3.9% after saying it would buy Sensus USA for about $1.7 billion in cash. Post Properties gained +9.4% after the company agreed to be bought by Mid-America Apartment Communities for about $3.88 billion. Mid-America’s shares fell -4.9%. Twitter rose +6.8% after the New York Times reported the company was in talks to bring its app to the Apple TV platform.
Most Asian stocks dropped as Japanese shares headed for second day of declines after the yen advanced toward 100 per dollar. The S&P/ASX 200 (-0.14%), Hang Seng (-0.09%) and the Nikkei 225 (-1.62%) all dropped. Cyberdyne Inc tumbled -6.8% after short-seller Citron Research said the company’s stock is poised to plunge. Sankyo Co slid -3.4% after SMBC Nikko Securities Inc cut its target price on the stock. Sony Corp lost -0.2% after rising by as much as 1.4% after Fitch Ratings Ltd revised its outlook on the company to “positive”, citing higher margins in its non-financial businesses and the management’s commitment to improve profitability.
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.