European stocks declined as investors awaited data that may show a rebound in US housing activity and a drop in German business confidence. The ESTX 50 (-0.16%), UK Markets (-0.19%), CAC 40 (-0.07%) and the DAX (-0.03%) all posted small losses in early trading. Pandora A/S fell -3.5% as some investors sold a stake of about 10% in the company. Smiths Group Plc fell -3.2% after forecasting a drop in profitability at its Smiths Detection unit. The company cited working capital adjustments, reduced volumes and lower margin contracts. Adecco advanced +0.9% after UBS raised its rating on the company from “sell” to “buy”. Alstom retreated -1% after GE agreed to a French government request to extend its deadline for the acquisition until 23rd June as officials seek better terms. Separately, the Wall Street Journal yesterday reported that Siemens is considering a formal offer for Alstom’s energy unit as due diligence comes to an end. Randstad climbed +2.6% after UBS raised its rating on the stock from “neutral” to “buy”. BTG Plc rallied +4.8% after saying the US Food and Drug Administration approved its EkoSonic Endovascular System for treating pulmonary embolism.
US stocks rose and small-cap shares rebounded as data showing strength in manufacturing boosted confidence in the global economy. The Dow Jones Industrial Average (+0.06%), S&P 500 (+0.24%) and the Nasdaq Composite (+0.55%) all advanced. Best Buy rallied +3.4% after posting first quarter profit that topped analysts’ estimates as the company continued to trim costs. Hewlett-Packard dropped -2.3% after saying sales in the second quarter fell 1% to $27.3 billion from a year earlier, lower than the $27.4 billion analysts projected for the period. Hess Corp jumped +1.1% after Marathon agreed to acquire the company’s petrol stations and retail business for a total $2.87 billion, expanding its footprint to 23 states from nine. PulteGroup Inc soared +2.2% and D.R.Horton Inc climbed +2.4% after a report on existing home sales. Activision Blizzard Inc dropped -1.6% after saying that Vivendi SA is selling half of its remaining stake in the company in an offer valued more than $850 million.
Asian stocks rose after data showed US manufacturing expanded and as the yen held yesterdays losses. The Nikkei 225 (+0.87%), Hang Seng (+0.10%) and the S&P/ASX 200 (+0.23%) all gained. Li & Fung Ltd, a company that gets 62% of its revenue in the US, gained +2.3% in Hong Kong. Sunac China Holdings Ltd jumped +7.4% in Hong Kong after it agreed to buy a stake in developer Greentown China Holdings Ltd. Greentown China soared +6.2%. Takeda Pharmaceutical Co added +1.6% in Tokyo after it was found not liable for the bladder cancer of two women who used its Actos diabetes medication. Chinese developers climbed after China Securities Journal reported the government will remove home purchase restrictions depending on market situations and avoid causing market volatility, citing an unidentified researcher with the housing ministry.
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.