European stocks dropped after data showed Chinese manufacturing shrank for a second month and Federal Reserve minutes signalled stimulus cuts will continue. The ESTX 50 (-0.92%), UK Markets (-0.42%), CAC 40 (-0.59%) and the DAX (-1.25%) all posted losses in early trading. Randstad Holding NV tumbled -8.4% after reporting quarterly results that missed estimates. TUI AG dropped -4.8% after one of its largest shareholders planned to sell its stake. BAE dropped -9.3% after saying earnings per share will decline between 5% to 10% in 2014 because of pressure on the US to contain its budget. Rexam Plc retreated -5.5% after Jefferies Group LLC said earnings estimates for the company may need to be trimmed to reflect currency fluctuations. Technip SA advanced +6.1% after saying its operating profit margin from subsea operations will be at least 12% in 2014 and increase to 15% to 17% next year.
Asian stocks fell after a Chinese manufacturing gauge dropped more than estimated. The Nikkei 225 (-2.15%) and the Hang Seng (-1.19%) both declined, while the S&P/ASX 200 (+0.08%) was up. Japanese exporters fell as the yen strengthened. Honda Motor Co, a company that relies on North America for about half its sales, slid -2.7%. Toyota Motor Corp lost -0.9%. Newcrest Mining Ltd lost -4.2% as futures on gold slid. Naver retreated -8.1% amid concern about WhatsApp’s possible expansion after Facebook’s purchase for as much as $19 billion in cash and stock. Sinopec surged +9.4% after announcing plans to sell as much as 30% of its oil retail unit to private investors. Leighton Holdings Ltd jumped +4.9% after underlying profit topped estimates.
US stocks fell with treasuries while the dollar gained as Federal Reserve meeting minutes indicated stimulus cuts would likely continue in measured steps and the IMF warned of risks to global growth. The Dow Jones Industrial Average (-0.56%), S&P 500 (-0.65%) and the NASDAQ Composite (-0.82%) all declined. US Steel Corp sank -7% after the Department of Commerce rejected its claim that South Korea is selling steel tubing in the US below cost. JPMorgan Chase & Co and Bank of America Corp both lost more than 1.6% as financial shares declined. Tesla shares fell nearly -5% during trading hours, but jumped +12% after the bell after posting better than expected fourth quarter results. Facebook shares were down over -2% in extended trading after closing at a record high, after news it buy WhatsApp for $16 billion in cash and stock, plus an additional $3 billion worth of restricted stock units to WhatsApp’s founders.
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.