European shares retreated this morning, with China’s rate cut effect fading slightly in Europe after markets rallied to two month highs last week on signs of more central bank support. The ESTX 50 (-0.24%), UK markets (-0.33%) and the CAC 40 (-0.54%) all posted losses in early trading, while the Dax (+0.03%) was lightly positive. Philips fell -2%, in spite of better than expected results, after saying the sale of its $3.3 billion Lumileds division was in doubt due to unexpected opposition from the US government. Peugeot fell -2% despite posting a +3.2% increase in quarterly revenue helped by recovering European demand. WPP Plc declined -2% after posting a 3.3% increase in quarterly comparable sales growth. Aberdeen Asset Management Plc climbed +4% after the Financial Times reported that the company has made informal approaches to potential buyers. Anglo American Plc and Rio Tinto Tinto Group dropped at least -1.1%
US stocks rose as earnings from several companies beat analysts’ expectations, with healthcare shares rebounding from recent losses. The Dow Jones Industrial Average (+0.90%), S&P 500 (+1.10%) and the Nasdaq Composite (+2.27%) all advanced. Microsoft rose +10.1% after adjusted revenue beat expectations for the ninth quarter in a row. Alphabet, Google’s new holding company, and Amazon soared to record intraday highs after results beat expectations. Alphabet ended up +5.6%, while Amazon rose +6.2%. Facebook Inc and Twitter also jumped, with Facebook rising above $100 for the first time. Proctor & Gamble rose +2.9% after its profit beat estimates. Whirlpool Corp dropped -8.7% after executives said currency would subtract $2.5 billion from the company’s annual revenue. Whirlpool lowered its 2015 expectations despite posting higher than expected third quarter earnings.
Asian stocks were mixed after China’s central bank cut its benchmark lending rate, stepping up efforts to cushion a deepening economic slowdown. The Nikkei 225 (+0.65%) advanced, while the Hang Seng (-0.15%) and the S&P/ASX 200 (-0.07%) both declined. Hitachi Ltd climbed +6.1% in Tokyo after lifting its profit forecast. BlueScope Steel Ltd soared +11% in Sydney after agreeing to buy the remaining 50% of its joint venture in the US with Cargill Inc for $720 million, giving the company full ownership of North America’s most profitable steel mill. Panasonic Corp surged +6.1% after the Nikkei newspaper reported the company’s first half operating profit will top analyst estimates. Sony Corp added +2.5% after it was reported that it is in talks to buy Toshiba Corp’s image sensor business. Toshiba gained +3.6%.
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.