European stocks declined as disappointing results from several companies raised concern about the coming earnings season and weakened demand for stocks. The ESTX 50 (-0.64%), UK markets (-0.24%), CAC 40 (-0.50%) and the Dax (-0.49%) all posted losses in early trading. Siemens fell -1.9% after it said profit from its industrial units dropped 4% last quarter. Ericsson was down -3.3% after it reported fourth quarter sales below expectations and said it expected business in North America to remain slow. Philips shed -3.5% as it cut its 2016 sales and earnings estimates after a setback in 2014. EasyJet plc added +4.3% after posting an increase in first quarter revenue. Crest Nicholson Holdings Plc advanced +4.3% as annual profit exceeded projections. IAG SA rose +1.2% after saying takeover target Aer Lingus Group Plc granted access to its books. Royal Mail Plc and Dixons Carphone Plc fell at least -2.4% as brokerages recommended selling the shares.
US stocks rose amid optimism fallout from anti austerity party Syriza’s victory in Greece’s election will be contained. The Dow Jones Industrial Average (+0.03%), S&P 500 (+0.26%) and the Nasdaq Composite (+0.29%) all increased. Microsoft Corp fell more than -2% in after hours trading, despite reporting second quarter sales and profit that exceeded analysts’ estimates. United Technology slid -2.1% after cutting its earnings forecast. D.R.Horton Inc gained -5.5% after posting better than expected first quarter profit as sales and orders jumped. MeadWestvaco Corp jumped +14% after Rock-Tenn Co agreed to acquire the company in a deal valued at about $9.2 billion to create the world’s second largest packaging company. Mattel Inc retreated -5% after replacing the chairman and CEO amid a five quarter sales slump and holiday season earnings that trailed analysts’ estimates.
Asian stocks rose as a weaker yen buoyed Japanese shares amid optimism the actions of Greece’s new government won’t force the nation to leave the euro currency bloc. The Nikkei 225 (+1.72%) and the S&P/ASX 200 (+0.83%) both increased, while the Hang Seng (-0.41%) declined. Honda Motor Co climbed +2%, pacing gains among Japanese exporters after the yen fell by the most in a week yesterday. Meiji Holdings Co surged +6.1% to extend a record high in Tokyo after announcing a price increase for its dairy products. Galaxy Entertainment Group Ltd and Wynn Macau Ltd jumped more than +6.4% after table gaming revenue in Macau gained last week and Union Gaming Group upgraded casino stocks to buy.
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.