European stocks dropped as Sunni insurgents made further territorial gains in Iraq, while investors awaited a report on US industrial production. The ESTX 50 (-0.42%), UK Markets (-0.10%), CAC 40 (-0.41%) and the Dax (-0.27%) all posted losses in early trading. Smith & Nephew Plc slid -2.3% after Medtronic In agreed to buy Covidien Plc. Medtronic Inc had considered making a bid for Smith & Nephew. Actelion rallied +14% after saying its experimental treatment for a lung disease met the main goal of a late-stage study. BT Group Plc lost -2.1% after the Sunday Times reported that the company may need to increase its pension contributions. Centrica was down -0.34%, despite Sam Laidlaw, the boss of Centrica ruling himself out of the running to take the top job at BG Group. BG Group was down -0.20%.
US stocks rose as corporate deals overshadowed concern that violence in Iraq will disrupt oil supplies. The Dow Jones Industrial Average (+0.25%), S&P 500 (+0.31%) and the Nasdaq Composite (+0.30%) all advanced. Intel jumped +6.8% after raising its sales forecasts for the second quarter and the full year, buoyed by improving business demand for personal computers. Applied Materials Inc gained +2.9% and Micron Technology Inc gained +1%. Express Inc surged +21% after Sycamore Partners said it plans to buy the company. Priceline Group Inc dropped -3% after agreeing to buy OpenTable Inc for $2.6 billion in cash. Citigroup Inc fell -1.4% after the US Justice Department said it will seek $10 billion as part of a probe into mortgage-backed bond sales. Finisar Corp sank -22% after forecasting first quarter earnings that missed analysts’ estimates.
Most Asian stocks fell amid an escalation of violence in Iraq. The Nikkei 225 (-1.09%) and the Hang Seng (-0.12%) both declined, while the S&P/ASX 200 (+0.13%) showed a modest increase. Korean Air Line fell -2.2%, Fanuc Corp retreated -1.9% in Tokyo and AirAsia BHD slid -2.5% in Kuala Lumpur as Brent crude oil prices advanced. Kobe Bussan Co slumped -3.9% after the Japanese supermarket operator’s first half net income plunged. GCL-Poly Energy Holdings Ltd tumbled -4.6% in Hong Kong after BNP Paribas SA said installation of solar panels in China will slow this year. Echo Entertainment gained +7.6% in Sydney after saying it sees earnings in the 2014 fiscal year being above the current median estimate of analysts. King Fook Holdings Ltd jumped +35% after saying its controlling stakeholder was approached by potential investors.
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.