European stocks advanced as several companies posted profits that beat estimates. The ESTX 50 (+0.76%), UK Markets (+0.36%), CAC 40 (+0.67%), DAX (+0.62%) posted gains in early trading. F&C Asset Management Plc climbed +4% after Bank of Montreal bought the owner of the UK’s oldest investment fund for £708 million. STMicroelectronics NV slipped -1.1% after posting an unexpected loss for the final three months of last year. Siemens increased +1.5% after saying profitability improved. Swedbank AB fell -3% after saying net income declined 15% because of rising costs. Swedbank also said it would pay a dividend of 10.10 kronor per share, less than the 10.50kronor projection compiled by Bloomberg. Crest Nicholson Holdings Plc climbed +1.7% after reporting an increase in sales. ARM Holdings Plc and Imagination Technologies Group Plc dropped at least -2% each as Apple Inc missed estimates for quarterly sales of iPhones.
US stocks retreated as concern over Federal Reserve plans to cut stimulus and an economic slowdown in China tempered gains in Industrial shares. The Dow Jones Industrial Average (-0.26%), S&P 500 (-0.49%) and the NASDAQ Composite (-1.08%) all declined. Visa declined -2.2%, Microsoft slipped -2.1% and Goldman Sachs lost -1.8% to lead declines among large companies. Liberty Global Plc slipped -2.2% after agreeing to buy Ziggo NV for €4.9 billion. Liberty will combine Ziggo’s 2.7 million customers with its UPC cable unit as it competes with Dutch carrier Royal KPN NV. Xerox Corp dropped -5.6% after being cut to “market perform” from “outperform” at BMO Capital Markets, citing that the stock’s valuation already reflected the company’s improved services and technology mix. Caterpillar Inc jumped +5.9% after announcing a stock buyback and forecasting earnings above analysts’ estimates amid demand for construction equipment.
Asian stocks fell amid concern over the Federal Reserve’s plan to cut stimulus and as profit growth at China’s industrial companies slowed. The Nikkei 225 (-0.17%), Hang Seng (-0.07%) and S&P/ASX 200 (-1.26%) all retreated. Zijin Mining Group Co sank -2.8% in Hong Kong after reporting that full year net profit tumbled 58% from a year earlier. Apple suppliers declined. LG Display dropped -3.3% in Seoul, Sharp Corp fell -3.4% and AAC Technologies Holdings Inc decreased -4.8% in Hong Kong. LG Electronics Inc sank -3.9% in Seoul after posting an unexpected loss as a stronger South Korean Won decreased the value of overseas sales. Kawasaki Heavy Industries Ltd climbed +2% after JPMorgan Chase & Co advised buying shares of 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.