European stocks were little changed after several companies reported earnings. The ESTX 50 (-0.49%) and CAC 40 (-0.24%) both declined, while the UK markets (+0.02%) and Dax (-0.02%) were both flat. Electrolux AB jumped +8.6% after saying fourth quarter operating profit increased 20%. Anglo American Plc climbed +1.4% after saying coal and iron ore output rose in the fourth quarter. Hennes & Mauritz AB lost -2.1% after fourth quarter pre-tax profit trailed projections. Johnson Matthey Plc slumped -5.9% after reporting third quarter results and JPMorgan Chase & Co cut its price target on the company, citing lower operating profit at the company’s Process Technologies Group. Greek stocks continued to tumble amid concern a newly formed Syriza led coalition will challenge austerity measures imposed in the debt ridden nation. The new government also opposed moves by the EU to impose more sanctions on Russia. National Bank of Greece and Piraeus Bank slid more than 9%, extending record lows.
US stocks retreated as disappointing results from several companies pointed to weakening conditions, while an unexpected decline in durable goods orders also weighed on sentiment. The Dow Jones Industrial Average (-1.65%), S&P 500 (-1.34%) and the Nasdaq Composite (-1.89%) al declined. Microsoft fell -9.3% a day after sales of Windows and Office showed signs of waning. Caterpillar dropped -7.2% after giving an outlook below expectations, warning the recent plunge in oil prices would hurt its energy equipment business. Many multinational companies disappointed with earnings this quarter, with the stronger dollar a common culprit. P&G was one of the companies pressured by a strong dollar, dropping -3.4%. Apple Inc rose +5.4% after it posted better than expected revenue growth, along with record sales of its iPhone line. AT&T Inc rose +1.8% after reporting that revenue rose more than expected in the last quarter.
Asian stocks gained as strong corporate earnings among Japanese companies and a weaker yen boosted sentiment. Which offset concerns that inflows into Chinese equities will slow after some banks reduced leverage for trust products investing in shares. The Nikkei 225 (+0.15%), Hang Seng (+0.22%) and the S&P/ASX 200 (+0.10%) all gained. Industrial & Commercial Bank of China Ltd and China Life Insurance Co dropped at least -1.9% to lead Chinese financials lower. Shaanxi Coal Industry Co plunged -6.3% after the Shanghai Securities News said the nation’s biggest coal producing province won’t approve new mines for five years. Poly Real Estate Group Co slid -3.6% after China’s banking regulator in Shanghai asked local lenders to conduct the widest ever tests on their exposure to the struggling real estate industry. ANA Holdings Inc added +3.3%, while Chugoku Electric Power Co jumped +6.6% to lead gains by power producers. Komatsu Ltd declined -2.3% ahead of its earnings release and after industry bellwether Caterpillar posted disappointing results.
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.