European stocks rose as investors weighed company earnings and awaited US data to gauge whether the Federal Reserve will end its bond purchases this month. The ESTX 50 (+0.90%), CAC 40 (+0.44%), Dax (+1.35%) and UK markets (+0.45%) all posted gains in early trading. UBS gained +2.3% despite posting a smaller than estimated gain in third quarter profit after setting aside $1.94 billion for legal costs as it prepares to settle probes into alleged currency rigging. Novartis rose +1.8% after earnings beat estimates. Sanofi lost -6.9% after posting results that were in line, but said pricing in the US diabetes market has become more challenging recently, which will impact sales of the bestselling Lantus insulin next year. Lloyds Banking Group Plc dropped -2.39% after saying it would set aside a further £900 million to compensate customers for mis-sold loan insurance, bringing its total bill so far to over £11 billion. BP Plc gained +0.44% after saying it will raise dividends for the third quarter by 5.3% year on year, while trimming organic capital expenditure for the full year.
US stocks were little changed as energy producers declined after oil dipped below $80 a barrel, while telephone and consumer shares rose. The Dow Jones (+0.07%), S&P 500 (-0.15%) and the Nasdaq Composite (+0.05%) all registered small changes before closing. Halliburton lost -6.1% as 40 of 43 energy companies in the S&P 500 retreated. Newfield Exploration, which explores for oil in the Rocky Mountains, retreated -4.6%. Nabors slid -6.7%. Goldman Sachs Group said that accelerating output from producers outside North America including Brazil and Azerbaijan will result in an oversupply in 2015. Merck & Co slid -2% after cutting the top end of its sales forecast. Sarepta Threapeutics Inc plunged -32% after saying regulators require more data on a new drug proposal. Micron Technology Inc rallied +4% after announcing a share buyback program.
Asian stocks outside Japan rose as Chinese industrial profits advanced and investors awaited a Federal Reserve decision on its stimulus program. Shares in Tokyo fell ahead of a central bank meeting. The S&P/ASX 200 (-0.12%) and Nikkei 225 (-0.38%) both declined, while the Hang Seng (+1.63%) advanced. Belle International Holdings Ltd surged +9.9% in Hong Kong after saying first half profit increased. China Railway Group Ltd jumped +9.9% in Shanghai and +7.6% in Hong Kong after government officials said the State Council has ordered the merger of train makers China Northern Locomotive & Rolling Stock Industry Group Corp and CSR Group into one company. Standard Chartered Plc sank -5.5% after posting a 16% slide in third quarter profit before tax.
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.