European stocks advanced on China infrastructure plans and as investors awaited data that may show euro-area economic confidence rose in March. The ESTX 50 (+0.62%), UK Markets (+0.51%), CAC 40 (+0.36%) and the DAX (+0.88%) all posted gains in early trading. Intesa Sanpaolo SpA gained +1.9% after it forecast dividend pay-outs of about €10 billion in total for the period 2014 to 2017. Deutsche Wohen AG rose +0.7% after posting a 68% increase in annual profit. Pirelli & C SpA increased +2.6% after reporting 2013 earnings that surpassed analysts’ predictions. Insurers dropped in light of the FCA’s current investigation into policies issued over the last 30 years. Legal & General Group (-5.13%), Aviva Plc (-4.22%), Standard Life Plc (-2.61%), Prudential Plc (-2.40%) and Old Mutual Plc (-0.30%) were among the biggest fallers in the UK this morning. Resolution Ltd was the worst hit, dropping -10.41%, as it specialises in closed book.
US stocks fell as investors resumed a rotation out of the bull market’s biggest winners. The Dow Jones Industrial Average (-0.03%), S&P 500 (-0.19%) and the NASDAQ Composite (-0.54%) all declined. Citigroup lost -5.4% after failing to win approval to raise its dividend to 5 cents a share and put in place a $6.4 billion buyback. The Federal Reserve also expressed concern about the bank’s ability to project losses in parts of its global operations and to reflect all business exposures in its internal stress test. Accenture slumped -5% after saying Eastern Europe adds to uncertainty even as it raised its full year earnings projections. Alcoa surged +6.2% after Sterne, Agee & Leach Inc said a UK ruling against London Metal Exchange’s pending warehousing changes is positive for the company. Exxon Mobil Corp jumped +1.6% for the steepest climb in the Dow as oil rose to a two week high on supply concerns.
Asian stocks rose, heading for their biggest weekly increases in almost a year. The Nikkei 225 (+0.50%), Hang Seng (+1.06%) and the S&P/ASX 200 (+0.31%) all advanced. Brilliance China jumped +7.1%, for its biggest rally since September 2012, after saying net income surged 47% and projecting a 30% growth in sales volume. Industrial Bank of China Ltd advanced +2.2% as net income climbed after setting aside lower provisions for bad debt than analysts’ estimated. Yahoo Japan plunged -6.4% after saying it will start a new service called Y!mobile that shares phone networks with SoftBank, and the transaction will go ahead once eAccess completes a merger with Willcom Inc.
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.