European shares were negative in early trading amid a drop in oil prices and mixed batch of corporate results, with disappointing updates from several companies. The ESTX 50 (-0.57%), UK markets (-0.28%), CAC 40 (-0.42%) and the Dax (-0.60%) all posted losses this morning. Centrica’s shares fell -7.7% after slashing its dividend and reporting a fall in its full year profit, as it was impacted by slumping energy prices. BP Plc and Royal Dutch Shell Plc followed oil shares lower, falling at least -1% each. Air France-KLM fell -4.9% after saying falling fuel prices was largely offset by overcapacity on some routes and currency swings, prompting the company to ease a key debt reduction goal. BAE Systems Plc lost -2% after Europe’s largest defence company said full year profit fell.
US stocks were mixed after a drop in energy shares but declines were limited by minutes from the last Federal Reserve meeting, which showed policymakers are concerned about raising interest rates too soon. The Dow Jones Industrial Average (-0.10%) and the S&P 500 (-0.03%) both closed showing small losses, while the Nasdaq Composite (+0.14%) finished the session slightly positive. Exxon Mobil fell -2.2%, and was the biggest drag on both the S&P 500 and Dow, following an explosion and fire at an Exxon refinery near Los Angeles and a drop in crude oil prices. Berkshire Hathaway also disclosed shedding a $3.74 billion investment in Exxon. US crude oil fell -2.6% to settle at $52.14 a barrel. Fossil Group Inc sank -15.7% after reporting quarterly earnings and revenue that was below expectations. Garmin Ltd fell -10.7% after giving an earnings outlook that was below estimates.
Asian stocks rose as Japanese export growth accelerated to the fastest pace in more than a year in January, with stronger demand from Asia and US. Hong Kong’s main index rose for a fourth day in a row, but volume was the lowest in nearly two months as many traders left their desks for the Lunar New Year. The Nikkei 225 (+0.36%) and the Hang Seng (+0.19%) both advanced, while the S&P/ASX 200 (-0.19%) declined. Among the most actively traded stocks in Hong Kong, Cypress Jade was up +3.4%, Crocodile up +2% and China Best jumped +18.1%. In Japan the value of overseas shipments jumped 17% from a year earlier, exceeding a median 13.5% forecast. Imports fell 9%, reducing the trade deficit of 1.2 trillion yen from a record shortfall of 2.8 trillion yen in January. Sony jumped +4% after saying it aims to boost operating profit 25 fold within three years by growing its camera sensor and PlayStation operations. Japanese banks were also higher, with Mitsubishi UFJ Financial Group and Mizuho Financial Group both rising +3.6%.
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.