European shares advanced this morning after some strong company results and mergers and acquisitions news supported the market. The ESTX 50 (+0.32%), UK markets (+0.48%), CAC 40 (+0.25%) and the Dax (+0.23%) all posted gains in early trading. RSA Insurance Group surged +12.9% after Zurich Insurance said it was weighing up a bid for the group with a market capitalisation of £4.4 billion. Melrose jumped +15% after saying it would sell its Elster business to Honeywell International for £3.3 billion in cash. Kering rose +5.6% after Gucci, the flagship brand of the French luxury and sportswear group, posted a 4.6% in underlying second quarter sales, marking a much sooner than expected rebound under its new creative and management duo. GKN Plc climbed +3.9% after agreeing to buy Fokker Technologies Group.
US stocks declined after the steepest decline in Chinese stocks in eight years increased concerns that cooling growth in the world’s No.2 economy could hurt China’s trading partners. The Dow Jones Industrial Average (-0.73%), S&P 500 (-0.58%) and the Nasdaq Composite (-0.96%) all retreated. With second quarter reports well under way, analysts expect overall earnings of S&P 500 companies to dip 0.3% and revenue to decline 3.9%, according to Thomson Reuters data. Teva Pharmaceutical’s shares jumped +16.41% to a record high of $72.00 after the company agreed to buy Allergan’s genetic drug business for $40.5 billion, giving up on its bid to buy Mylan, Allergan rose +6.09% while Mylan fell -14.51%. Fiat Chrysler fell -4.88% after a US auto safety watchdog announced a $105 million fine against the company over lapses in safety recalls.
Asian stocks were mixed as Chinese shares see-sawed after Beijing scrambled to prop them up while some investors took shelter from market volatility in safe haven assets such as government bonds and the Japanese yen. The Nikkei 225 (-0.10%) and the S&P/ASX 200 (-0.09%) retreated, while the Hang Seng (+1.02%) increased. Laox Co, a company that sells about 70% of its appliances to Chinese tourists, gained +1.2%. Japan Exchange Group Inc jumped +3.7% after first quarter operating profit rose 38%. Komatsu Ltd dropped -2.1%. PetroChina Co, long considered a favourite holding of state linked rescue funds, declined -4.2%. China Railway Group Ltd slumped -8% for a three day 20% retreat. Hundsun Technologies Inc plunged by the daily limit of 10% for a second day.
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.