European stocks rose this morning as banks surged after stress tests showed most of them would keep an adequate level of capital in a crisis. The ESTX 50 (+0.31%), CAC 40 (+0.38%), Dax (+0.74%) and the UK markets (+0.36%) all posted gains in early trading. Banca Monte dei Paschi di Siena SpA rallied +8.5%, despite performing the worst in the regulators’ exam. It said it plans to sell shares if it can offload a bad-loan portfolio. Amundi SA jumped +7.3% after reporting a rise in second quarter profit with further asset inflows. Credit Argicole SA, its majority owner advanced +0.7%. Air Liquide SA dropped -2.1% after saying earnings fell in the first half of the year, missing analysts’ estimates.
US stocks rose as gains in technology companies such as Alphabet and Amazon more than made up for losses in energy shares. The S&P 500 (+0.16%) and the Nasdaq Composite (+0.14%) both increased, while the Dow Jones Industrial Average (-0.13%) declined. US GDP in the second quarter grew at a 1.2% rate, coming in below expectations for a rise of 2.6% and fuelling arguments the Federal Reserve may not need to raise interest rates anytime soon. Alphabet jumped +3.33% after posting strong quarterly revenue growth, while Amazon.com added +0.82% after giving an upbeat forecast for the current quarter. However, the Dow was dragged down by a -1.48% drop in McDonald’s and a 1.39% fall in Exxon, which reported a lower than expected quarterly profit.
Asian shares gained after disappointing US economic growth data reduced expectations that the US Federal Reserve will raise interest rates in the next few months. The S&P/ASX 200 (+0.45%), Hang Seng (+1.09%) and the Nikkei 225 (+0.40%) all increased. NEC Corp sank -11% after posting about 30 billion yen in operating losses for the second quarter on lack of growth in developing markets and the domestic economy. Sony Corp rose +1.7% after the company surprised analysts by posting a profit of 21.2 billion yen last quarter. Analysts had expected a 39 billion yen loss. Panasonic Corp declined -7% after reporting profit for the second quarter that missed analyst estimates.
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.