European stocks retreated as a report showed that German business confidence fell for a sixth month, which offset earlier gains following the region’s bank stress test results. The ESTX 50 (-0.31%), Dax (-0.32%), UK markets (-0.19%) and the CAC 40 (-0.29%) all posted losses in early trading. Erste Group Bank AG rallied +5%, Raiffeisen Bank International AG climbed +4.4%, Commerzbank AG gained +2.8% and Eurobank Ergasias SA rose +3.1%. TNT Express lost -7% after reporting an operating loss for the third quarter because of provisions related to restructuring and a competition case in France. Lloyds Banking Group Plc slid -2.2% after Jefferies Group LLC lowered its rating on the stock to “sell”, saying the bank probably won’t pay a dividend until 2016 as it will require a higher capital ratio than initially thought.
US stocks rose after several companies climbed after reporting earnings. The Dow Jones Industrial Average (+0.76%), S&P 500 (+0.71%) and the Nasdaq Composite (+0.69%) all advanced. P&G gained +2.3% after saying it would exit Duracell, preferably by splitting the business into a standalone company and giving shareholders the option of exchanging P&G shares for stock in the new equity. Microsoft climbed +2.5% after revenue at the Nokia handset business which Microsoft acquired earlier this year, topped projections. United Parcel Service Inc advanced +0.1% after profit beat estimates. SodaStream surged +15% after industry newsletter Beverage Digest said the company plans to test PepsiCo-branded products. Amazon.com Inc slid -8.3% after posting the biggest quarterly loss since 2003.
Asian stocks rose amid optimism about the financial strength of European banks. The S&P/ASX 200 (+0.86%) and Nikkei 225 (+0.63%) both increased, while the Hang Seng (-0.68%) declined. Tokyo Electric Power Co jumped +17% on report the utility’s profit may nearly triple. JSR Corp soared +6.5% after announcing a share buyback. Fanuc Corp fell -4.3% after saying its second quarter orders fell to 134.5 billion yen from 142 billion yen in the previous quarter. Fujifilm Holdings Corp gained +2.9% after it agreed to acquire Kalon Biotherapeutics LLC. Hong Kong Exchanges & Clearing Ltd plunged -4.7% after Charles Li, the CEO of the bourse operator, said he had no idea when authorities will give the green light to proceed on the Shanghai-Hong Kong stock link. Tencent retreated -1.2% while Galaxy Entertainment Group Ltd tumbled -3.1% after being citied as beneficiaries of the trading link.
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.