European shares fell on concern that the crisis in Ukraine may escalate. The ESTX 50 (-0.12%) UK Markets (-0.36%), CAC 40 (-0.21%) and the DAX (-0.10%) all posted losses in early trading. Hennes & Mauritz AB fell -2.9% after reporting quarterly profit that missed analysts’ estimates. United Internet AG added +4.3% after saying that profit jumped 25% last year. RBS lost -1.7% while Santander declined -0.9% after the Federal Reserve failed their US subsidiaries, citing flaws in the quality of their capital spending. Babcock international Group Plc fell -2.9% after agreeing to buy private equity owned Avincis for £920 to expand in helicopter servicing. Under the terms of the deal, Babcock will absorb £705 million of Avincis debt and carry out a rights offering to help fund the acquisition. Raiffeisen Bank International AG rose +1.7% after saying fourth quarter income surpassed analysts’ projections.
US stocks after Barack Obama warned the crisis in the Ukraine may escalate and Facebook Inc dropped the most since 2012. The Dow Jones Industrial Average (-0.60%), S&P 500 (-0.70%) and the Nasdaq Composite (-1.43%) all declined. Facebook slid -6.9% after saying it will spend $2 billion to buy Oculus. King Digital tumbled -16% after raising $500 million in its initial public offering, pricing the shares in the middle of the marketed range. Peabody Energy Corp fell -2.7% after UBS AG cut its rating on the stock to “neutral” from “buy”, citing more financial distress in the coal industry over the next one or two years amid an oversupply. Citigroup dropped -5.4% in after-hours trading after it was revealed that it was among five banks that failed Fed stress tests, while Goldman Sachs Group and Bank of America passed only after reducing their requests for buybacks and dividends.
Asian stocks were mixed as utilities advanced and internet shares sank on concern valuations are too high. The Nikkei 225 (+1.01%) advanced, while the Hang Seng (-0.24%) and the S&P/ASX 200 (-0.50%) both declined. Kansai Electric Power Co advanced +4.8% and Tohoku Electric Power added +4.1% in Tokyo. Citic Pacific Ltd soared +13% in Hong Kong on a plan to buy its parent’s assets. Tencent fell -5.9% in Hong Kong after King Digital Entertainment Plc posted the biggest decline of a newly listed US company in over four months, even after pricing at a discount to peers. Naver Corp lost -3% in Seoul. People.cn Co declined -6.6% in Shanghai and Yahoo Japan Corp dropped -2.9%.
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.