European stocks dropped as investors weighed corporate earnings and escalating tensions in Ukraine. ESTX 50 (-0.79%), UK Markets (-0.32%), CAC 40 (-0.53%) and the DAX (-0.97%) all posted losses in early trading. Royal KPN NV declined -1.2% after reporting first quarter earnings that missed analysts’ estimates. Tele2 AB lost -1.7% after releasing sales and profit figures that trailed projections. Deutsche Bank AG dropped -1.6% after Handelsblatt reported that the bank is considering selling about €5 billion of shares to raise capital levels. Volvo AB lost -1.5% after saying first quarter operating profit surge almost fivefold as the manufacturer scaled back production to meet a cost savings target for 2015. Electrolux AB advanced +7.7% after announcing first quarter earnings that beat the median estimate of analysts compiled by Bloomberg. Tullow Oil Plc declined -2.7% after saying it abandoned a well of the coast of Mauritania. AstraZeneca fell -2.5% after closing at a record.
US stocks rose as technology companies rallied after Apple Inc results topped estimates. The Dow Jones Industrial Average (0.00%) was flat, while the S&P 500 (+0.17%) and the Nasdaq Composite (+0.52%) both declined. Apple jumped +8.2% after selling more iPhones than analysts predicted. Verizon Communications plunged -2.4% for the biggest drop in the Dow as the company prepares for a surge of customers opting to pay for smartphones on instalment plans, threatening to shrink monthly wireless bills. The looming shift in revenue cast a shadow over first quarter earnings and the subscriber gains that beat analysts’ estimates. 3M declined -1% after reporting first quarter earnings that trailed analysts’ estimates as Latin American demand slowed and foreign currencies. Caterpillar rose +1.8% after posting first quarter earnings and sales that beat analysts’ estimates as it boosted its full year outlook on improved expectations for the building industry.
Asian stocks were mixed as investors weighed escalating tensions in Ukraine and corporate earnings. The Hang Seng (-1.42%) dropped, while the Nikkei 225 (+0.17%) and the S&P/ASX 200 (+0.24%) both advanced. Omron Corp slumped -6.4% in Tokyo after forecasting full year profit that missed estimates. China Huishan Dairy Holdings Co fell -5.6% in Hong Kong to a record low after an investor sold $74.5 million worth of shares at a discount. Chugai Pharmaceutical Co jumped +3.2% after the Japanese unit of Roche Holding AG reported first quarter profit doubled. Omron slumped -6.4% after saying it expects full year profit to increase 10% to 51 billion yen, missing analysts’ expectations for a 52.8 billion yen gain. Hyundai Motor Co fell -2.5% in Seoul after posting first quarter profit that missed estimates as a stronger won eroded export earnings.
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.