European stocks were negative this morning, with some disappointing company results putting pressure on the market. The ESTX 50 (-0.11%), UK markets (-0.64%), CAC 40 (-0.26%) and the Dax (-0.15%) all posted losses in early trading. Nestle dropped -4.3% after saying it expected softer pricing and growth in line with last year in 2016 as full year organic growth of 4.2% fell short of expectations. KBC also fell -4% after reporting a fourth quarter net profit below expectations as it took an impairment on its operations in Bulgaria and Slovakia. Air France-KLM rose +6.5% after beating forecasts with a return to profit last year, helped by a drop in fuel prices and growth in passenger traffic.
US stocks gained, led by energy shares as oil prices jumped, while better than expected economic data helped alleviate fears over growth. The Dow Jones Industrial Average (+1.59%), S&P 500 (+1.65%) and the Nasdaq Composite (+2.21%) all increased. Oil prices rose 7% after Iran voiced support for a Russia-Saudi led move to freeze production. Data also showed US industrial production in January rose by the most in 14 months. Kinder Morgan rose +10% and led a rally in infrastructure tied companies after Berkshire Hathaway disclosed a stake in the pipeline operator. Priceline closed +11.2% higher after reporting profit that beat expectations. Fossil surged +28.6% after quarterly results beat estimates.
Asian stocks rose as crude oil extended gains on hopes that big producers will cap output, improving investor sentiment for riskier assets. The Nikkei 225 (+2.28%), Hang Seng (+2.32%) and the S&P/ASX 200 (+2.25%) all advanced. Laox Co Ltd soared +15% after reporting a 51% year on year rise in domestic all store sales. The retailer is popular with foreign tourists and investors look at its performance as an indicator of inbound tourist spending. Toshiba Corp added +3.5% after Kyodo News reported the company is in talks to sell its white goods business to Arcelik AS. Yokogawa Electric Corp dropped -4.3% after offering a 69% premium to buy KBC Advanced Technologies Plc. Inpex Coro jumped +6.1% and Toyota Motor Corp rose +1.7%.
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.