European stocks advanced as reports the Federal Reserve will continue to support the US economy offset a slowdown in Chinese manufacturing growth. The ESTX 50 (+0.31%), CAC 40 (+0.23%), Dax (+0.21%) and UK markets (+0.16%) all posted gains in early trading. Raiffeisen Bank International AG rallied +5.3% after posting second quarter net income that exceeded analysts’ projections. Polymetal International Plc gained +1% after Bank of America Corp advised investors to buy the stock. Nobel Biocare Holding AG rose +2.1% after raising its 2014 profit margin forecast. Air Berlin Plc climbed +8.5% after posting a quarterly profit and saying it will reduce its capacity. Royal Ahold NV fell -2.7% after reporting second quarter earnings that missed analysts’ estimates. CRH Plc rose after Sanford C Bernstein & Co raised its rating on the stock. Fresnillo Plc and Randgold Resources Ltd each lost more the -1.2% as commodity producers retreated.
US stocks rose after Federal Reserve meeting minutes indicated continued stimulus amid uneven gains in the labour market. The Dow Jones Industrial Average (+0.35%) and the S&P 500 (+0.25%) both increased, while the Nasdaq Composite (-0.02%) was flat. International Rectifier Corp soared +47% after Infineon Technologies AG agreed to buy the company for about $3 billion in cash, adding to its power management technology business. Staples Inc declined -2.6% for the biggest loss in the S&P 500 after announcing it will shut about 140 locations this year, part of a store closing plan announced earlier, as the retailer responds to online competition. J.M.Smucker Co fell -1% after reporting earnings that missed analysts’ estimates, citing slow sales of consumer foods and coffee. Hertz Global Holdings Inc slumped -3.9% after saying its full year results will miss the low end of its forecast. Industrials had the biggest gains. Jacobs Engineering Group Inc jumped +3.1%, ADT Corp increased +2.7% and Southwest Airlines Co advanced +2.7%.
Asian stocks outside Japan fell after a private gauge of Chinese manufacturing dropped more than economists forecast. The S&P/ASX 200 (+0.08%) and the Nikkei 225 (+0.85%) both advanced, while the Hang Seng (-0.86%) retreated. Tatts retreated -5.8% after profit and the final dividend missed forecasts, dragging the shares down by the most since February 2012. Dainippon Screen gained +3.4% after Mitsubishi UFJ Morgan Stanley raised its recommendation on the stock to “outperform” from “neutral”. AMP Ltd climbed +4.2% after saying it is focused on reducing costs. ZTE Corp rose +2.8% in Hong Kong after reporting increased first half profit. Honda Motor Co, a company that gets nearly half its revenue in North America, climbed +2.3%. Mazda Motor Corp increased +2.8% on a report the company is on track to become debt free in the year ending March 2017 as cash flow improves.
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.