European stocks were negative this morning as data signalled contraction in Chinese manufacturing. The ESTX 50 (-0.27%), CAC 40 (-0.35%) and the DAX (-0.13%) all posted losses, while the UK Markets (+0.04%) were pretty flat. Scania AB retreated -4.2% after Alecta, which owns just over 2% of Scania, said Volkswagen’s offer does not fully reflect Scania’s long-term fundamental value. Associated British Foods Plc led advancing shares rallying +8.2% as its Primark chain posted a 26% increase in first half profit and planned US entry. Ericsson AB slid -4.5% after reporting sales that missed analysts’ estimates. Banca Monte dei Paschi di Siena SpA rose +3.9% after Goldman Sachs upgraded the stock to “neutral” from “sell”. Thomas Cook Group Plc advanced +4.7% after Barclays upgraded the stock to “overweight” from “underweight”.
US stocks as health-care shares surged amid a $45.7 billion bid for Allergan Inc and earnings from several companies topped estimates. The Dow Jones Industrial Average (+0.40%), S&P 500 (+0.41%) and the Nasdaq Composite (+0.97%) all advanced. Allergan surged +15% after Valeant Pharmaceuticals Inc offered to merge with the company. Netflix soared +7% after saying it expects to increase prices for new customers. Harley-Davidson added +6.4% after its earnings release. Comcast Corp advanced +1.9% after saying its increased number of subscribers helped it post a first quarter profit that beat estimates. McDonald’s Corp dropped -0.4% after posting falling sales and first quarter profit trailed analysts’ estimates. Facebook Inc climbed +2.9% after Credit Suisse raised its rating on the company to “outperform” from “neutral”.
Asian stocks pared gains after a Chinese manufacturing report signalled persisting weakness in the world’s second largest economy. The Nikkei 225 (+1.09%) and the S&P/ASX 200 (+0.70%) both advanced, while the Hang Seng (-0.83%) declined. China Mobile Ltd fell -2.5% after posting its third straight drop in quarterly profit. Resona Holdings Inc climbed +2.5% after Greenlight Capital Inc said it bought shares in the Japanese company. Chinese developers and banks led losses in Hong Kong as fourth month of contraction for mainland factory activity added to concern the nation may miss its economic growth goal. China Overseas Land declined -3.4%. China Resources Land Ltd slipped -2.5%. Industrial & Commercial Bank of China Ltd dropped -1.5%. Seibu Holdings Inc jumped +11% on its trading debut in Tokyo after pricing its public offering at the bottom of its planned range.
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.