European shares dropped this morning on concerns over Greece’s debt situation prompting investors to trade cautiously. The ESTX 50 (-0.76%), UK markets (-0.40%), CAC 40 (-1.02%) and the Dax (-0.21%) all posted losses in early trading. German Finance Minister Wolfgang Schaeuble hinted on Saturday that Berlin was preparing for a possible Greek default, drawing parallel with the secrecy of German reunification plans in 1989. Volkswagen gained +4% after the resignation of its chairman. HSBC rose +3.2% on a report that Europe’s biggest bank was weighing plans to spin off its British retail bank. Deutsche Bank AG lost -2.8% after scrapping its goal of 12% return on equity target for next year, saying it plans to achieve 10% in the medium term. Anglo American Plc and ArcelorMittal added more than +1.3% after China boosted stimulus measures.
US stocks closed higher for the weekend, propelled by strong results from several companies. The Dow Jones Industrial Average (+0.12%), S&P 500 (+0.23%) and the Nasdaq Composite (+0.71%) all advanced. Amazon surged +14.1% to a high after revenue beat estimates. Google ended -2.9% after reporting quarterly results, while Microsoft jumped +10.5% after it topped estimates. Xerox slumped -8.75% after it cut its 2015 profit forecast, blaming the strong dollar. Time Warner Cable jumped +4.8% on news Charter Communications Inc’s representatives reached out to be begin discussions on a potential merger. Comcast earlier abandoned its proposed $45 billion merger with Time Warner Cable.
Asian stocks climbed, following US stocks higher. The Hang Seng (+1.33%) and the S&P/ASX 200 (+0.83%) both gained, while the Nikkei 225 (-0.18%) declined. Chinese stocks rallied, led by heavyweights such as China Petroleum & Chemical Corp and PetroChina Co Ltd on expectations that Beijing will accelerate mergers among state owned enterprises. China Petroleum & Chemical and PetroChina jumped by their +10% limit in Shanghai on merger expectations. Bets on consolidation also pushed shares of China Shipbuilding, CSSC Holdings Ltd and Guangzhou Shipyard International Co Ltd up over +8%. Sony Corp sank -0.3% after Nikkei newspaper report that the company’s operating profit will reach about 300 billion yen, below estimates. Mazda Motor Corp sank -2.8% after its operating profit projection missed expectations.
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.