European shares rose as positive earnings reports helped push equities higher. The ESTX 50 (+0.59%), CAC 40 (+0.39%) and the Dax (+0.71%) all posted gains in early trading, while UK markets (-0.04%) were flat. Metro shares rose +3% after saying it was optimistic for the Christmas trading period as its like-for-like sales rose +1.3% in the final quarter of its fiscal year. Deutsche Bank AG rose +2.5% after saying it’s reshuffling management in an effort to reshape and rebuild relations with regulators. Danone gained +2.2% after reporting third quarter sales that beat analysts’ estimates. Wincor Nixdorf AG surged +21% after Diebold Inc said its offered €1.57 billion to buy the company. Shire Plc lost -1.8% after US regulators asked for additional testing and information to approve a treatment for dry eye disease that the company has touted as a potential blockbuster.
US stocks gained, lifted by a jump in General Electric shares and upbeat consumer sentiment data. The Dow Jones Industrial Average (+0.43%), S&P 500 (+0.46%) and the Nasdaq Composite (+0.34%) all increased. The University of Michigan’s preliminary index on consumer sentiment rebounded strongly in early October. GE shares rose +3.4% after reporting better than expected earnings. The stock was among the biggest boosts to the S&P 500 and Dow. Mattel jumped +6% and was the biggest percentage gainer in the S&P 500, even after its sales missed estimates. Honeywell fell -1.5% even though it also beat profit estimates. Grainger slumped -6.3% after results. Twitter rose +4.8% after Bloomberg reported that former Microsoft CEO Steve Ballmer owns a 4% stake in the company.
Asian stocks were mixed as investors awaited data on China’s economy. The Nikkei 225 (-0.88%) dropped while the Hang Seng (-0.04%) and the S&P/ASX 200 (+0.03%) were flat. Sanken Electric tumbled -9.9% after Mitsubishi UFJ Morgan Stanley cut its rating to “hold” from “buy” and slashed its share price target by 55%, citing slower earnings growth. Nippon Soda rose +14% as Nomura raised its recommendation to “buy” from “neutral”, citing a strong contribution to earnings from Novus, its US affiliate. China United Network Communications Ltd dropped -2.5%, halting a two day gain. Shanghai Wangsu Science & Technology Co retreated -3.1% paring a rally from the August low to 67%.
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.