European stocks declined this morning as a decline in health care stocks outweighed gains in Norsk Hydro ASA and Faurecia SA. The ESTX 50 (-0.23%), UK markets (-0.10%), CAC 40 (-0.21%) and the Dax (-0.04%) all posted losses in early trading. Novartis AG fell -2.2% after reporting a 7% drop in second quarter earnings. Actelion Ltd slipped -0.8% after reporting lower than forecast first half core earnings. Norsk Hydro advanced +1.7% after second quarter underlying net income beat estimates. Faurecia added +2% after it was reported that the company is exploring a sale of its bumpers business. Zalando SE retreated -5.4% after indicating that second quarter earnings may have declined because of higher costs. Fresnillo Plc rallied +1.8%, rebounding from a three day slump. EasyJet fell -1.74% after Commerzbank AG reiterated its sell recommendation on the stock.
US stocks were slightly up as a better than expected start to corporate earnings season boosted investor confidence, but gains were curbed by a drop in commodities. The Dow Jones Industrial Average (+0.08%), S&P 500 (+0.08%) and the Nasdaq Composite (+0.17%) all increased. Gold prices plunged to their lowest in more than five years while copper prices hit their lowest in nearly two weeks. Oil prices fell on signs on a growing glut in refined products to pull the S&P energy index down 1.3%. IBM lost -3.6% in extended trade after reporting its quarterly results. Apple, Yahoo and Microsoft are due later this week. Morgan Stanley touched its highest level in seven years after reporting profit that beat expectations. However, it relinquished gains and closed down -0.4%.
Asian stocks rose as a weaker yen buoyed Japanese equities and consumer shares advanced. The Nikkei 225 (+0.93%), Hang Seng (+0.48%) and the S&P/ASX 200 (+0.35%) all increased. Japan Airlines Co added +2.3% and Mitsui O.S.K Lines Ltd climbed +4.4% on the outlook for lower fuel costs. Kikkoman Corp, which gets 41% of sales from North America, rose +1.5%. Toshiba Corp soared +6.1% before announcing after the market closed that President Hisao Tanaka would resign over an accounting scandal. Giken Ltd fell -8.3% after announcing a public shares sale. Rastar Group and Top Resource Conservationa Engineering Co both surged by the 10% daily limit. PetroChina Co retreated -1.8%.
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.