European shares climbed this morning as investors speculated on further monetary support from the European Central Bank. The ESTX 50 (+1.30%), UK markets (+0.63%), CAC 40 (+1.40%) and The Dax (+1.35%) all posted gains in early trading. Gjensidige surged +11.2% after the company reported third quarter profits ahead of market expectations. Electrolux gained +3.8% after the company reported third quarter earnings that beat market expectations. Ericsson fell -4.3% after it posted third quarter revenue and profits below market expectations. Volvo rose +2.6% after saying third quarter operating profit surged 75%. Vinci SA gained +1.1% after forecasting better than projected annual sales. TalkTalk Telecom Group Plc declined -3.2% after saying a data hack may have compromised customers credit card details.
US stocks rallied as stronger than expected earnings from several companies relieved investors’ concerns about the profit outlook. The Dow Jones Industrial Average (+1.87%), S&P 500 (+1.66%) and the Nasdaq Composite (+1.65%) all advanced. Buying accelerated after the close, with broad gains in tech and other companies that reported results, including Alphabet, up +9.6% and Microsoft up +7.2%. Amazon rose +10.6% after it posted results. McDonald’s jumped +8.1%, giving the Dow its biggest boost, after its quarterly results beat estimates as demand recovered in China. eBay rose +13.9% after it reported better than expected results. Dow Chemical rose +5.1% after its results, while the S&P materials index jumped +2.8% and led the S&P sector gains along with industrials, also up +2.8%. Community Health Systems sank -35.1% after it gave a disappointing revenue outlook.
Asian stocks rose after the European Central Bank signalled it may boost stimulus this year and amid speculation the Chinese government will take more measures to bolster the economy before a top-level Communist Party meeting starts next week. The S&P/ASX 200 (+1.67%), Hang Seng (+1.29%) and the Nikkei 225 (+2.11%) all increased. Calbee gained +9.6% after the Nikkei Business Daily reported its April-September profits were likely to come in strong, while Megmilk Snow Brand soared +10.5% on raised April-September guidance. Kweichow Moutai Co jumped +4.2% after reporting an increase in third quarter profit. China Vanke Co climbed +2.9% after home prices increased in more Chinese cities. Nomura Holdings Co surged +3.7% and Daiwa Securities Group Inc climbed +2.3%.
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.