European stocks dropped as GlaxoSmithKline Plc retreated after becoming the subject of a criminal investigation. The ESTX 50 (-0.25%), UK Markets (-0.06%), CAC 40 (-0.16%) and the DAX (-0.06%) all posted losses in early trading. Glaxo dropped -1.4% after revealing the UK’s Serious Fraud Office has started a probe into the company’s conduct. Elekta AB slid -7.7% after quarterly profit missed estimates. Osram Licht AG slumped -7.6% after cutting its sales forecast for the year ending September. Hugo Boss AG fell -2.3% as its majority shareholder sold a stake in the company. Royal Ahold NV slipped -2.4% after reporting underlying operating income of €392 million, less than the €399 million projected by analysts. The company also said profitability in the US will be lower in the second quarter partly because of increasing commodity prices. Telecom Italia SpA advanced +3.7% after Goldman Sachs added the stock to its conviction buy list, saying the company will benefit from consolidation in the industry.
US stocks advanced after durable goods orders unexpectedly rose and JBS SA offered to buy Hillshire Brands Co for $6.4 billion. The Dow Jones Industrial Average (+0.42%), S&P 500 (+0.60%) and the Nasdaq Composite (+1.22%) all advanced. Facebook Inc jumped +3.5% leading technology shares in the S&P 500 higher. Hillshire jumped +22% as JBS’s Pilgrim’s Pride Corp unit made an unsolicited bid for the company. Bank of America Corp climbed +3.4% after resubmitting its capital plan to the Federal Reserve. Staples Inc slipped -2% after Goldman Sachs Group Inc cut its rating on the stock to “sell” from “neutral”, saying the company’s investments will offset the benefits of closing stores and cutting costs. Cisco Systems Inc rose +0.8% as Deutsche Bank AG boosted its recommendation on the company to “buy” from “hold”, citing higher demand for the company’s new switching, routing, security, wireless and cloud-computing products.
Asian stocks rose as China reported industrial profits and US data added to signs a recovery in the world’s largest economy is intact. The Nikkei 225 (+0.24%), Hang Seng (+0.59%) and the S&P/ASX 200 (+0.28%) all gained. Exporters advanced. Samsung Electronics Co climbed +1.8% in Seoul. Yue Yuen Industrial Holdings ltd jumped +3% in Hong Kong. Li & Fung Ltd, a company that gets 62% of sales from the US, added +1%. Goodpack Ltd climbed +4.3% after KKR & Co offered $1.1 billion to buy the Singapore based provider of bulk containers. Yamada Denki rose +6.4% in Tokyo after saying it will sell convertible bonds and use the proceeds to buy back shares. Mitsui Fudosan sank -4.7% after it was announced that the company plans to sell as many as 110 million shares as it expects a boost from 2020 Tokyo Olympics and the government’s efforts to stimulate growth.
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.