European stocks declined after several companies posted worse than expected financial results. The ESTX 50 (-0.39%), UK Markets (-0.04%), CAC 40 (-0.80%) and the Dax (-0.22%) all posted losses in early trading. LVMH lost -4.9% after saying first half profit from recurring operations fell 5% as Asian demand weakened in the second quarter, led by slower Chinese spending. Danone fell -1% as sales and profit missed projections. Air France-KLM Group rose +4.8% after reporting second quarter profit that exceeded estimates. Sky Deutschland AG added +2.2% after British Sky Broadcasting Group Plc offered to buy the German broadcaster. Kronen tausend985 GmbH, a subsidiary of BskyB, offered to pay €6.75 per share for the rest of Sky Deutschland after agreeing to buy 21st Century Fox Inc’s 57.4% in the company. BskyB fell -4.1%. Royal Bank of Scotland Group Plc gained +1.6% after predicting first half profit almost doubled. Balfour Beatty Plc and Carillion Plc rallied +12% and +7.8% respectively, after saying they are in preliminary merger talks.
Asian stocks rose as earnings from several companies boosted investor sentiment. The Nikkei 225 (+1.13%) and the Hang Seng (+0.19%) both advanced, while the S&P/ASX 200 (-0.08%) declined. Fanuc jumped +5.3% after posting quarterly profit that beat analyst estimates. Itochu Corp rose +2.5% after announcing a share buyback. Treasury Wine Estates Ltd slipped +1.8% in Sydney after Credit Suisse Group AG said the proposed deal with KKR & Co is unlikely to happen, lowered its share price forecast by 33% and reiterated its “underperform” rating. Advantest Corp plunged -6.7% after posting profit that missed estimates. Kia Motors Corp gained +1.6% in Seoul after reporting second quarter profit that beat analyst estimates.
US stocks were little changed as growth in global manufacturing offset a drop in home sales. The Dow Jones Industrial Average (-0.02%), S&P 500 (+0.05%) and the Nasdaq Composite (-0.04%) registered small changes. Facebook jumped +5.2% to a record after saying second quarter sales surged 61%. Under Armor Inc surged +15% after increasing its 2014 profit target. Caterpillar sank -3.1% after forecasting full year profit that fell short of estimates. D.R.Horton dropped -12% for the biggest loss and its worst day since November 2009 after saying its fiscal third quarter earnings as the company’s sales margins shrank. Airline stocks slumped, as a third fatal airline crash in the past week left 2014 on track for the worst year in almost a decade for passenger fatalities. United Continental Holdings Inc slid -2.4% and American Airlines Group Inc lost -2.7% even after the two companies disclosed dividends earlier in the day. Amazon.com Inc sank -6.2% in late trading after reporting a loss wider than analysts’ projected.
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.