European stocks declined after several companies reported earnings. The ESTX 50 (-0.41%), UK markets (-0.42%), CAC 40 (-0.60%) and the Dax (-0.52%) all posted losses in early trading. Orange dropped -2% after reporting a decline in quarterly sales and earnings as increased competition in its European markets weighed on prices. Commerzbank AG retreated -5.4% after saying it plans to sell €1.4 billion of shares in an accelerated offering to boost capital after a US fine eroded its buffers. Daimler AG climbed +2.4% after saying first quarter operating profit jumped 41% amid rising demand. Banco Santander SA added +1% after posting a 32% rise in first quarter profit. BP gained +1.6% after reporting first quarter profit that was than double what analysts estimated. Total SA rose +1.4% after first quarter profit beat forecasts as refining gains and the fastest rate of production growth in more than a decade helped offset lower oil prices.
US stocks retreated after disappointing news from several companies. The Dow Jones Industrial Average (-0.23%), S&P 500 (-0.41%) and the Nasdaq Composite (-0.63%) all declined. Amgen shares led the decline in the S&P 500 and Nasdaq, dropping -3.3% after US regulators said Amgen’s skin cancer immunotherapy cannot be considered for an accelerated review at this time. Celladon Corp fell -80.7% and hit a record low after saying it expected layoffs and cost cuts after the company’s lead experimental gene therapy to treat heart failure failed a key trial. Mylan fell -5.7% after it rejected Teva Pharmaceutical’s unsolicited $40 billion takeover offer, saying it grossly undervalues the company. Teva lost -4.3%. After the bell, Apple shares gained +1.1% after reporting a 27% jump in quarterly revenue.
Asian stocks declined as sentiment gave way to caution ahead of the Federal Reserve’s policy two day meeting. The Hang Seng (-0.19%) and the S&P/ASX 200 (-0.57%) both retreated, while the Nikkei 225 (+0.38%) gained. Shares of PetroChina and Sinopec Corp, which surged yesterday due to merger speculations, softened after the two oil giants dismissed the rumour, saying they have never received any official information after such a restructuring. PetroChina shares dropped -2.2% in Shanghai, also hit by a sharper than expected 82% fall in first quarter profit. Sinopec shares rose +1.4%. China COSCO and Merchants Energy Shipping Co both jumped their maximum 10% on consolidation expectations. Fanuc Corp rose +3.3% after saying it will double its dividend. Osaka Gas Co added +3.2% after reporting profit that beat its forecast.
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.