European stocks fell after several companies posted worse than forecast earnings. The ESTX 50 (-1.25%), UK markets (-1.02%), CAC 40 (-1.14%) and the Dax (-1.59%) all posted losses in early trading. ArcelorMittal dropped -4.9% after also lowering its full year profit forecast. Iliad SA plummeted -8.9% after offering $15 billion for a controlling stake in T-Mobile US Inc. Vinci SA retreated -8.4% after forecasting a slight drop in 2014 revenue on a comparable basis, down from a previous projection of little change. Axa SA gained +2.2% after saying first half net income surged 22% to €3 billion, boosted by improved earnings from selling life insurance and savings products. IAG SA added +2.3% after saying second quarter operating profit jumped 55% to €380 beating analysts had predictions of €359 million.
US stocks tumbled, erasing the year’s gains in the Dow, amid weaker corporate results. The Dow Jones Industrial Average (-1.88%), S&P 500 (-2.00%) and the Nasdaq Composite (-2.09%) all retreated. Exxon tumbled -4.2% for the largest drop in 3 years after it was reported oil and gas output dropped 5.7% to the equivalent of 3.84 million barrels of crude a day, the lowest since the third quarter of 2009. Murphy Oil dropped -6.9% after lowering its full year production forecast as second quarter earnings trailed analysts’ estimates. Kraft Foods Group Inc lost -6.4% after reporting second quarter sales that missed the average analyst projection. Yum! Brands Inc slid -4.9% after saying it cut ties with meat supplier OSI Group LLC globally after previously saying it would stop using it in China, Australia and the US.
Asian stocks slumped amid weaker earnings and credit-market concerns. The Nikkei 225 (-0.63%), Hang Seng (-0.91%) and the S&P/ASX 200 (-1.36%) all declined. Skymark Airlines Inc sank -11% after saying it may go out of business should it have to pay Airbus Group NV a penalty for cancelling the purchase of six A380 superjumbos. Samsung Electronics Co fell -3.8% in Seoul after UBS AG its rating on the stock to “neutral” from “buy”, saying it’s hard to see earnings improving through 2015. China Rongsheng Heavy Industries Group Holdings Ltd fell -3.2% in Hong Kong after saying it expects a significant increase in the net loss for the six months ended June after customers cancelled orders. Yahoo Japan Corp tumbled -6.6% in Tokyo after posting flat operating profit. Sony Corp jumped -4.7% in Tokyo after posting a surprise first quarter profit.
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.