European shares rose this morning on expectations that the European Central Bank would reinforce its ultra-loose monetary policy. The ESTX 50 (+0.30%), CAC 40 (+0.07%), Dax (+0.28%) and the UK markets (+0.05%) all posted gains in early trading. Volkswagen rose +5.3% after sources told Reuters that VW and US officials had reached a framework deal under which the company would offer to buy back almost 500,000 diesel cars that used sophisticated software to evade emission rules. Ericsson slumped -9% after posting first quarter sales and operating profit below market expectations. Schneider Electric SE climbed +4% after posting first quarter revenue that beat estimates. Darty Plc jumped +14% after Groupe Fnac SA raised its bid for the company, topping an increased offer from Steinhoff International Holdings NV. Fnac slipped -2.2%.
US stocks rose as a rebound in oil prices added to optimism sparked by a raft of earnings reports. The Dow Jones Industrial Average (+0.24%), S&P 500 (+0.08%) and the Nasdaq Composite (+0.16%) all increased. Crude gained about +2% after a report showed US inventories grew less than expected last week. VMWare jumped +13.74%, Discover Financial Services rallied +8.16%, St Jude Medical gained +3.99% and Yahoo rose +4.16% after they all reported better than expected quarterly profits. Coca Cola fell -4.78% after sales dropped for the fourth straight quarter. Lexmark jumped +9.38% after it agreed to be taken private by a group of investors led by Apex Technology Co and PAG Asia Capital in a deal valued at $3.6 billion net of cash. After the bell, Qualcomm lost -0.5% after reporting a 19.5% drop in quarterly revenue.
Asian stocks rose after crude futures climbed to an almost five month high and Japanese shares gained as the yen held three days of losses against the dollar. The S&P/ASX 200 (+1.09%), Hang Seng (+1.82%) and the Nikkei 225 (+2.70%) all increased. Mitsubishi Motors plummeted -20% after saying that about 625,000 minicars produced over the past three years were marketed as being as much as 10% more fuel efficient than they were. Nissan Motor Co, which sold three quarters of Mitsubishi’s minicars under its own brand, rose +3.2% as investors brushed off concerns the fallout may spread. Mitsubishi’s suppliers dropped. Meidensha Corp sank -9.4% and GS Yuasa Corp fell -1.5%. Fujifilm Holdings Corp jumped +6.3% after the Nikkei newspaper reported operating profit would reach 220 billion yen in the fiscal year ending March 2017.
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.