European stocks rose as several companies reported earnings. The ESTX 50 (+0.51%), CAC 40 (+0.33%) and the Dax (+0.54%) all posted gains in early trading, while the UK markets (-0.09%) were slightly down. Roche Holding AG gained +2.5% after reporting first quarter revenue that beat analysts’ estimates. ASML Holding NV jumped +9.3% after saying it signed a deal with a US customer to deliver at least 15 of its extreme ultraviolet lithography systems. Volvo AB rallied +13% and Rolls-Royce Holdings Plc gained +4.2% after both companies named new CEO’s. Kering SA lost -4.4% as it reported a worse than expected drop in sales at its Gucci brand. Cie.Financiere Richemont SA slipped -0.9% after saying it expects a profit slump for the financial year ended in March. Travis Perkins rose +2.5% after saying first quarter comparable sales increased +5.1%. Ladbrokes Plc dropped -1.1% after reporting a 22% slump in quarterly profit. Tesco Plc was up +0.72% this morning despite reporting its biggest annual loss in its 96 year history, £5.74 billion.
US stocks were mixed with the Dow ending lower after a handful of uninspiring earnings reports, while the Nasdaq closed near a record high following a proposed biotech merger. The Dow Jones Industrial Average (-0.47%) and the S&P 500 (-0.15%) both declined, while the Nasdaq Composite (+0.39%) gained. Almost 73% of the S&P 500 components that have reported earnings so far have beat bottom-line expectations, but just 42.2% have beat expectations for revenue. DuPont lost -2.9% after reporting lower sales in all its businesses and said a strong dollar would take a toll on its full-year earnings. IBM fell -1.1% after citing currency effects when it reported a fall in revenue. Mylan rose +8.6% after Teva made an unsolicited offer of $82 per share, in what could be the industry’s largest takeover this year. Teva rose +1.4%. After the close, Chipotle Mexican Grill and Yahoo posted quarterly revenues that fell short of analyst estimates, and their shares fell -4.5% and 1.2%, respectively. Yum Brands and Broadcom gained about +4% each after they posted earnings that beat modest expectations.
Most Asian stocks rose as a weaker yen helped Japanese equities and as Japan’s trade balance swung to a surplus for the first time since 2012. The Nikkei 225 (+1.13%) and the Hang Seng (+0.37%) both gained, while the S&P/ASX 200 (-0.59) declined. Sunac China Holdings Ltd jumped nearly +10% to a record high, after media reports that Kaisa Group’s chairman had no plans to cancel a deal to sell his family’s 49.3% stake in Chinese developer to Sunac. Yahoo Japan Corp gained +2.7% after Yahoo inc said it was exploring options for its stake in the Japanese company. Mitsubishi UFJ Financial Group Inc advanced +3% for a second day. Tokyo Steel Manufacturing Co tumbled -6% after forecasting a drop in operating profit. Nomura Holdings Inc jumped +4.5% and Daiwa Securities Group inc added +3% as investors bought stocks that lagged the broader market this year. Inpex Corp fell -1.8% as crude oil declined for a second day after Saudi Arabia halted airstrikes against neighbouring Yemen and ahead of data that is forecast to show US stockpiles rose from already record levels.
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.