European stocks fell amid worse than estimated financial results. The ESTX 50 (-0.94%), UK markets (-0.30%), CAC 40 (-0.66%) and the Dax (-0.63%) all posted losses in early trading. SAP SE lost -3.9% after cutting its full year earnings forecast. Royal Phillips NV slid -2.7% after third quarter sales and profit missed analysts’ estimates. Nutreco NV jumped +39% after SHV agreed to buy the company. ARM lost -1.9% as investors awaited the company’s quarterly results. Tesco climbed +2.6% after a report that private equity groups may bid for the company’s Asian businesses. Spirit Pub Co jumped +7.4% after agreeing to recommend a sweetened bid by Greene King Plc to its shareholders. Shell retreated -1.2%.
US stocks rallied as earnings beat estimates, consumer confidence reached a seven year high and investors speculated that central banks will add more economic stimulus. The Dow Jones industrial Average (+1.63%), S&P 500 (+1.29%) and the Nasdaq Composite (+0.97%) all finished positively for the weekend. Schlumberger Ltd jumped +3.7% after reporting earnings and saying falling crude prices won’t have significant impact on its business. Morgan Stanley added +2.1% as third quarter profit almost doubled. Urban Outfitters Inc sank -14% after the retailer said a sales slump has persisted as it heads into the holiday shopping season. General Electric Co increased +2.4% after beating analysts’ third quarter profit estimates as cost cutting helped boost margins in the industrial business. Google Inc slipped -2.6% after missing profit and revenue estimates for the third quarter.
Asian stocks rose as Japanese shares surged amid optimism the nation’s $1.2 trillion pension fund will boost stock holdings. The Nikkei 225 (+3.98%), Hang Seng (+0.30%) and the S&P/ASX 200 (+0.91%) all advanced. Japanese stocks surged after the Nikkei newspaper reported that the Government Pension Investment Fund will raise its allocation target for domestic shares to about 25% from 12%. Toyota Motor Corp jumped +5.2% in Tokyo as the yen extended losses. NEC Corp increased +6.5% on a report first half operating profit rose. Transfield Services Ltd soared +27% in Sydney after the provider of outsourcing services entered talks with Ferrovial SA after turning down a preliminary offer. China Citic Bank Corp and China Minsheng Banking Corp both gained at least +0.8% after the People’s Bank of China was reported to be planning an injection of about 200 billion yuan into some regional and national banks.
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.