European stocks advanced after several companies reported better than expected results. The ESTX 50 (+0.93%), UK markets (+0.59%), CAC 40 (+0.90%) and the Dax (+1.33%) all posted gains in early trading. SAP climbed +2% after reporting first quarter sales that topped estimates as a weaker euro boosted revenue. Actelion added +5.5% as it increased its full year forecast after first quarter profit beat estimates. L’Oreal SA gained +1.3% after posting a 14% increase in first quarter sales as a weaker euro helped compensate for sluggish growth in western Europe. Publicis Groupe SA rose +4.9% after reporting first quarter sales soared a better than expected 32% as the weaker euro and acquisition of Sapient Corp added to earnings. Rio Tinto Group lost -1.6% after reporting first quarter iron ore production expanded a less than estimated 12%.
US stocks rose after China moved to stimulate its slowing economy while investors bought technology stocks on cautious optimism on upcoming earnings reports. The Dow Jones Industrial Average (+1.17%), S&P 500 (+0.92%) and the Nasdaq Composite (+1.27%) all advanced. The outlook for technology companies’ profits has brightened modestly following results from Intel and Netflix last week and Check Point Software’s report on Monday, which beat expectations. Check Point Software jumped +5%. Apple Inc helped lead the US market higher, rising +2.3%. While IBM jumped +3.4%. After the bell, IBM reported its 12th straight drop in quarterly revenue as it shed unprofitable businesses to focus on cloud-computing. The earnings exceeded expectations, and IBM’s shares lost -0.2% in extended trading. Hasbro jumped +12.5% after reporting a surprise increase in revenue. Royal Caribbean lost -8% after it reported a fall in revenue, saying the strong dollar hurt spending on its cruise ships.
Asian stocks advanced following China’s latest move to prop up its economy and yen’s first drop in a week helped Japanese exporters. The Nikkei 225 (+1.40%), Hang Seng (+2.37%) and the S&P/ASX 200 (+0.67%) all gained. Toyota Motor Corp and Nissan Motor Co Ltd, gained +2.2% and 2.4%, respectively, while Panasonic Corp gained +3.7%. Canon Inc slid -0.9% in Tokyo after the Nikkei newspaper reported that the company will post a drop in profit in the three months through March. China Merchants Bank Co and Bank of China Ltd climbed more than +4% in Hong Kong. China Mobile advanced +7.9% after adding more subscribers to its fourth generation service. Kweichow Moutai Co jumped +10% after reporting a jump in profit. Bucking the trend, CSR Corp and China CNR both slumped on Tuesday on profit-taking after surging recently on plans to merge. Both companies fell by their maximum 10% limit in Shanghai and over 13% in Hong Kong.
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.