European shares pared early gains this morning, after commodity related stocks initially led the market higher after prices of major industrial metals and crude oil rose on a softer dollar. The ESTX 50 (-0.04%), CAC 40 (-0.05%), Dax (-0.19%) and the UK markets (-0.23%) all posted losses in early trading. The European oil and gas index advanced +1.4% on currency moves and as some analysts said markets might not be as oversupplied as suggested by many, with global inventories rising less than expected. Rio Tinto, Randgold Resources, Fresnillo, Royal Dutch Shell and BP rose between +1.2% and +2.2%. Bureau Veritas fell -4.5% after the company cut its outlook for full year 2016 as weakness in the oil and gas and shipping markets weighed on its revenue.
US stocks advanced amid solid earnings reports that put corporate profits on track to snap a four quarter streak of declines. The Dow Jones Industrial Average (+0.42%), S&P 500 (+0.62%) and the Nasdaq Composite (+0.85%) all increased. Of the 52 S&P 500 companies that have reported results to date for the third quarter, 81% have reported earnings that topped average analyst estimates, according to Thomsen Reuters. Third quarter earnings are now expected to show growth of 0.2%, which would mark an end to the US profit recession that began in the third quarter of 2015. UnitedHealth jumped +6.9% after quarterly results and forecast. Netflix was the biggest gainer on the S&P 500, rising more than +19% after posting quarterly results and much higher than expected subscriber growth. IBM fell -2.6% after reporting its 18th straight quarter of revenue decline.
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. The S&P/ASX 200 (+0.45%) and the Nikkei 225 (+0.21%) both advanced, while the Hang Seng (-0.38%) declined. Chinese GDP expanded 6.7% in the year to September, exactly as forecast. Private investment remained subdued with government spending and property strong. Sharp Corp jumped +11% after saying it expects significant improvement in annual profit. Mitsubishi Motors Corp advanced +7.9% after the Nikkei newspaper reported that Nissan Motor Co decided to appoint its CEO, Carlos Ghosn, as chairman of Mitsubishi Motors.
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 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.
Morning Spread 26th September 2016 Asian shares declined following losses on Wall Street as investors attention turned from central banks to American politics ahead of the first US presidential debate.