European shares declined as energy and commodity producers retreated, while investors assessed earnings and growth prospects ahead of economic data this week. The ESTX 50 (-0.83%), UK markets (-0.69%), CAC 40 (-0.78%) and the Dax (-0.87%) all posted losses in early trading. Rio Tinto Group and BHP Billiton Ltd fell at least -2.2% as base metals retreated. Royal Philips NV dropped -4% after saying it is considering an initial public offering of its lighting business, after reporting better than estimated quarterly profit. Zodiac Aerospace SA fell -1% as Reuters cited an unnamed person as saying that an offer for the company from Safran SA was not on the agenda. Safran SA rose +2%. Volkswagen AG lost -2% and Daimler AG fell -1.5%.
US stocks were mixed on Friday after disappointing quarterly reports from some tech companies, while a surge in oil prices lifted energy shares. The Dow Jones Industrial Average (+0.12%) gained, while the S&P 500 (0.00%) was flat and the Nasdaq Composite (-0.80%) declined. Helped by a softer dollar and a recovery in oil prices, the S&P 500 has rebounded from a steep selloff earlier this year and is only about 2% short of last May’s record high. Microsoft dropped -7.17%, contributing the biggest drag to the S&P 500 and Alphabet lost -5.41% as investors punished both companies for missing profit and revenue estimates. Starbucks fell -4.88% after missing sales expectations, while Visa lost -2.08% after it cut full year revenue forecast.
Asian shares dropped as investors took profits from the currency’s recent gains ahead of central bank meetings in the United States and Japan this week. The Nikkei 225 (-0.76%), Hang Seng (-0.92%) and the S&P/ASX 200 (-0.69%) all retreated. H.I.S Co sank -6.4% after cutting its forecast for first half operational profit by 25% to 8.3 billion yen. The company now sees a net loss when it previously saw a profit. Toyota Motor Corp climbed +1.2%. KDDI Corp sank -4.1% and Nippon Telegraph & Telephone Corp slumped -3.1%. Aluminium Corp of China Ltd dropped -1.4% while China Minmetals Rare Earth Co dropped -3.8%.
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.