European stocks rose as better than expected results from several companies offset a decline in energy shares. The ESTX 50 (+0.24%), UK markets (+0.13%), CAC 40 (+0.21%) and the Dax (+0.16%) all posted gains in early trading. Credit Suisse rose +4.4% after quarterly profit beat estimates on gains in private banking and wealth management. Unilever climbed +2.1% after reporting higher than forecast second quarter sales growth. BP Plc’s dropped -1.2% as oil neared a bear market. Daimler AG rose +1.3% after saying second quarter operating profit jumped 54%, beating estimates as Mercedes-Benz outpaced rivals in China and new models boosted sales. Roche Holding AG advanced +1.5% after reporting first half profit that exceeded analyst estimates.
US stocks declined as the technology sector fell on disappointing results. The Dow Jones Industrial Average (-0.38%), S&P 500 (-0.24%) and the Nasdaq Composite (-0.70%) all retreated. Apple shares slumped -4.3%, a day after forecasting revenue would fall below expectations, its biggest percentage drop since January 2014. Apple was the biggest drag on all three indexes and contributed nearly 37 to the Dow’s overall decline. Microsoft fell -3.7% after reporting its biggest ever quarterly loss, as the company wrote down its Nokia phone business and demand fell for its Windows operating system. Yahoo shed -1.2% after it forecast lower than expected revenue for the current quarter as it struggles to revise its core online advertising business. Lennar Corp gained +2.3% after data showed home re-sales rose to their highest level in nearly 8 ½ years in June.
Asian stocks rose as a rally in Japanese equities countered a decline in mining shares and a deepening commodities rout. The Nikkei 225 (+0.44%) and the Hang Seng (+0.49%) both rose, while the S&P/ASX 200 (-0.43%) declined. Brokerages paced gains among Chinese financial shares, with Citic Securities Co and Haitong Securities Co both advanced at least +2%. Ping An Insurance (Group) Co jumped +4.2% after saying it expects first half net profits to have risen 62%. Airline ANA Holdings Inc climbed +2.3% on the prospect for lower fuel costs. Oji Holdings Corp jumped +3.9% after the Nikkei newspaper forecast that the company’s operating profit will soar. Nidec Corp surged +8.7% to a record after reporting better than expected earnings. Eisai Co sank -5.9% after trials of an experimental Alzheimer’s drug it is co-developing were inconclusive.
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.