European stocks declined as banks and health care companies suffered. The ESTX 50 (-1.20%), UK markets (-0.82%), CAC 40 (-0.91%) and the Dax (-1.05%) all posted losses in early trading. Royal Philips NV slid -3.9% after agreeing to buy Volcano Corp for $1 billion to boost its growth in image guided treatments of the heart and blood vessels. UCB SA dropped -2.9% after the sale of its US generic drug business to two private equity firms for $1.53 billion fell apart. Acciona SA slipped -1.4% as Expansion reported that the company’s contract to build a tunnel in Melbourne could be suspended by the new state government. Dixons Carphone Plc climbed +3.1% after first half sales increased by 5%. International Consolidated Airlines Group SA, Mondi Plc and EasyJet Plc led the declines in the UK, all falling at least -2.2% this morning.
US stocks retreated as companies from Microsoft Corp to Google Inc led a selloff in technology shares that overshadowed gains in oil producers. The Dow Jones Industrial Average (-0.65%), S&P 500 (-0.85%) and the Nasdaq Composite (-1.24%) all declined. Amazon.com Inc and Google Inc each declined -3.6% to lead losses in the Nasdaq. JPMorgan Chase & Co cut its 12 month price target on Google to $600 from $670, while maintaining an “overweight” rating. Netflix Inc and Yahoo! Inc slumped more than -2%. Apple lost -1.4%. Whirlpool declined -4.9% after revising down its 2014 earnings projection, citing unfavourable currencies and expenses related to two acquisitions. Range Resources Corp, Transocean Ltd and Diamond Offshore Drilling Inc all advanced more than +3.2% after several analysts suggested that the energy sector had been hit so hard that it’s not going to take much for those stocks to turn around. Boeing Co added +1.8% after boosting a stock buyback plan to $12 billion and raising its quarterly dividend by 25%.
Asian stocks were mixed before a Federal Reserve policy decision as consumer shares led the decline. The Nikkei 225 (+0.38%) and the S&P/ASX 200 (+0.18%) both increased, while the Hang Seng (-0.37%) decreased. Geely Automobile sank -17% in Hong Kong as the company said it expects full year profit to fall about 50% because of the slumping Russian currency and declining sales. Japan Tobacco sank -7.4% after Goldman Sachs cut its rating on the stock to “neutral” from “buy” and a report said the government is considering scrapping a tax break on six of the company’s cigarette brands. Unitika Ltd slumped -5% after saying it improperly obtained smoke insulation certification for a product. Tokyo Electron Ltd rose +2.4% after a report China is less likely to block its deal with Applied Materials. Inpex rose +2.8% and Japan Drilling Co added +1.5%
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.