European stocks advanced as several companies rallied amid an increase in mergers and acquisitions activity. The ESTX 50 (+0.37%), UK Markets (+0.23%) CAC 40 (+0.17%) and the DAX (+0.25%) all posted gains in early trading. AstraZeneca jumped +15% after Pfizer Inc confirmed its interest in taking over the company for almost $99 billion. Bayer advanced +4.4% after it was reported that it is exploring a sale of its plastics unit and after it posted first quarter profit that beat estimates. Siemens AG slipped -2.1% after French officials asked Alstom SA to consider its rival offer to beat a bid from General Electric Co. BG Group lost -6.4% after the CEO, Chris Finlayson, resigned with immediate effect. Meda AB dropped -6.2% after rejecting a merger proposal from Mylan Inc.
US stocks declined for the week as disappointing results from Amazon.com Inc triggered a selloff in technology shares and tensions over Ukraine escalated. The Dow Jones Industrial Average (-0.85%), S&P 500 (-0.81%) and the Nasdaq Composite (-1.75%) all declined. Amazon dropped -6.5% after predicting an operating loss in the current quarter. Visa Inc lost -4.3% as revenue fell short of targets. Apple Inc jumped +9% for its best week since August as the company sold more iPhones than forecast. Allergan Inc surged +26% after Valeant Pharmaceuticals International Inc offered to merge with the company. Verizon plunged -3.5% and AT&T sank -4.3% on concern that a surge of customers opting to pay for smartphones on instalment plans threatens to shrink monthly bills and lower future profit. Mylan Inc rallied +11% after it was reported that it is raising its offer for Meda AB to about 43.8 billion Swedish kronor.
Asian stocks fell as investors weighed corporate earnings and prospects Russia will be subject to new sanctions as tensions over Ukraine intensify. The Nikkei 225 (-0.98%) and the Hang Seng (-0.42%) both retreated, while the S&P/ASX 200 (+0.09%) was slightly positive. Honda sank -4.5% after forecasting a full year profit that missed analysts’ estimates. Japan Exchange Group Inc tumbled -6.2% after its net income projection fell short of expectations. China Life Insurance slid -0.4% in Hong Kong after saying profit fell -28% in the first quarter from a year earlier as investment returns declined. Japan Display Inc plunged -16% after forecasting operating profit that was than analysts’ projections. Goodman Fielder Ltd surged +15% after rejecting a $1.2 billion offer from Wilmar International Ltd and First Pacific Co, saying it materially undervalues the company.
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.