European stocks declined after a report showed manufacturing in China declined. The ESTX 50 (-0.87%), UK markets (-0.33%), CAC 40 (-0.64%) and the DAX (-0.38%) all posted losses in early trading. Novartis AG lost -1% after failing to win backing from a European advisory panel for its Serelaxin treatment for acute heart failure. Celesio AG gained +5.4% as McKesson Corp agreed to buy majority owner Franz Haniel & Cie’s entire holding in the company for €23.5 a share. Syngenta AG retreated -3.1% after two grain groups asked the company to halt sales on two types of genetically modified corn seeds in the US that have been approved in China. Adidas fell -3.4% after Deutsche Bank lowered its earnings estimates on the company for 2014 and 2015. Aberdeen Asset Management Plc lost -4% after Morgan Stanley downgraded the shares. TUI Travel Plc gained -1.4% after JPMorgan Chase & Co said tour operators as a group are the strongest among European leisure companies.
US stocks fell after a gauge of China’s manufacturing contracted and investors analysed corporate earnings. The Dow Jones Industrial Average (-1.07%), S&P 500 (-0.89%) and the NASDAQ Composite (-0.57%) all declined. Berkshire Hathaway Inc Class B shares fell -1.5% after it was reported that regulators are starting to scrutinise Warren Buffett’s conglomerate to determine whether it is important enough to the financial system to require Fed supervision. Materials producers declined after commodity stocks retreated in Europe. Prices for industrial metals sank as the manufacturing data from China fell below economists’ forecasts. DuPont Co fell -2%. Alcoa Inc dropped -1.2%. Cliff Natural Resources dropped -4.3%. Noble Corp fell -8.6%, for the steepest decline in the S&P 500, after saying the offshore oil industry may be due for a cyclical pause. Diamond Offshore Drilling Inc fell -5.2% and Rowan Cos lost -2.6%. AT&T Inc gained +1.4% and Verizon Communications Inc added +1.1% as phone stocks were the only group to advance in the S&P 500.
Asian stocks fell amid concern earnings growth will miss estimates on signs of weakness in China’s economy. The Nikkei 225 (-1.94%), Hang Seng (-1.25%) and the S&P/ASX 200 (-0.42%) all retreated. Honda Motor Co fell -2.4% in Tokyo after the Yen strengthened the most in four months yesterday, dragging Japanese exporters lower. Newcrest Mining Ltd rose +3.8% after gold soared in New York. Zijin Mining Group Co advanced +1.8% in Hong Kong. Citic 21CN Co rose +372% after Alibaba Group Holding Ltd and Yunfeng Capital said they will buy a majority stake in the firm. The Reject Shop Ltd slumped -32% in Sydney after profit at the discount retailer missed estimates.
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.