European equities were little changed amid mixed earnings results. The ESTX 50 (+0.11%), CAC 40 (+0.22%), Dax (+0.14%) all posted gains in early trading, while UK markets (-0.15%) declined. Barclays Plc climbed +4% as revenue at the investment bank fell less than expected. Banco Santander SA added +2.9% after net income beat analysts’ estimates. Adidas AG gained +4.9% after raising its annual profit forecast as consumers spend more before this year’s European Football Championship in France. Societe BIC SA sank -6.3% after reporting a decline in margins. Total SA added +1.7% after posting a smaller than projected drop in quarterly earnings, helped by cost cuts and rising production. Dialog Semiconductor Plc slipped -2.3% after Apple reported a drop in quarterly revenue.
US stocks advanced, buoyed by gains in the energy and materials sectors, even though lacklustre economic data weakened the US dollar, thereby giving support to oil and gold prices. The Dow Jones Industrial Average (+0.07%) and the S&P 500 (+0.19%) both gained, while the Nasdaq Composite (-0.15%) was down. DuPont rose +2.4% after saying it is aiming to buy back $2 billion in shares this year. 3M and Proctor & Gamble were down -1.3% and 2.3% respectively after reporting declining sales. Apple shares almost dropped almost -7% after the bell as its earnings fell below expectations and its outlook also disappointed. Twitter lost more than -10% after it reported lower than expected revenue for the first quarter, hurt by weaker spending by big advertisers.
Asian stocks fell as suppliers to Apple Inc declined and fund managers awaited policy decisions from the Federal Reserve and the Bank of Japan. The S&P/ASX 200 (-0.63%), Hang Seng (-0.21%) and the Nikkei 225 (-0.36%) all retreated. Suppliers to Apple slipped after Apple posted its first quarterly revenue drop in more than a decade and forecast another decline in the current period. Alps Electric Co fell -1.2%, while Murata Manufacturing Co dropped -4.4% in Tokyo. iPhone sales in China, Taiwan and Hong Kong fell -26% in that period. Mitsubishi Motors Corp lost -2.8%, taking its loss since April 19th to 51% as a scandal over improper fuel economy testing deepens. Coca-Cola East Japan Co surged +13% and Coca-Cola West Co jumped +10% after the companies announced plans to merge.
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.