European shares rose as investors awaited a European Central Bank policy meeting and after positive earnings updates from several companies. The ESTX 50 (+0.23%), CAC 40 (+0.03%) and the Dax (+0.25%) all posted gains in early trading, while the UK markets (-0.08%) decreased. The ECB is likely to keep the door open for more monetary stimulus but stop short of taking policy steps at a meeting on Thursday as it awaits fresh indications about the outlook for euro zone inflation. Roche rose +1.5% after raising its full year sales outlook. Publicis fell -7% after cutting its annual organic growth target to 1% from 2.5% as quarterly sales slowed markedly hurt by weakness in the United States. Daimler lost -1.3% despite third operating profit jumping by almost a third as strong demand in Europe and China coupled with new product launches spurred luxury car sales to a record.
US stocks fell as a sharp drop in Valeant Pharmaceuticals hit the healthcare sector, while the energy sector dropped along with oil prices. The Dow Jones Industrial Average (-0.28%), S&P 500 (-0.58%) and the Nasdaq Composite (-0.84%) all retreated. Valeant Pharmaceuticals plunged to an intraday low of $88.50 on record volume after a short seller accused the company of using speciality pharmacies to inflate its revenue. The company denied the allegation, and later investor Bill Ackman said he increased his Valeant stake by about 2 million shares. The stock pared losses to end the session down -19.2% at $118.61. It lost about $9.6 billion in market capitalisation. The news also dragged down Allergan (-1.7%) and Endo International (-13.3%), Though both companies tried to ease concerns about their use of speciality pharmacies. General Motors rose +5.8%, while Boeing rose +1.7%, after both reported better than expected results. Ferrari was up +5.8% in its debut on the New York Stock Exchange. After the bell, eBay rose +8.4% following results.
Asian shares declined amid concerns about the health of China’s economy, and as investors awaited the result of a meeting of the European Central Bank. The Nikkei 225 (-0.64%) and the Hang Seng (-0.69%) both decreased, while the S&P/ASX 200 (+0.30%) gained. IHI Corp slumped -11% after cutting its profit target. Obic Co jumped +7.4% after saying first half net income rose 41%. Kaken Pharmaceuticals International Inc tumbled -9.7%, following Valeant Pharmaceuticals and other US healthcare stocks drop. International & Commercial Bank of China Ltd, which is reporting earnings later this month, slumped -2.5% on concerns the slowing economy may have hurt profit. Bank of Communications Co dropped -2%.
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.