European stocks retreated this morning as investors assessed earnings and weak crude prices weighed on oil companies. The ESTX 50 (-1.39%), CAC 40 (-1.48%), Dax (-1.00%) and the UK markets (-0.79%) all posted losses in early trading. Commerzbank AG dropped -4.4% after scrapping its profit target for this year, forecasting a drop in earnings. Metro AG dropped -5.2% after reporting third quarter sales and profit that missed estimates because of swings in currencies. Direct Line Insurance Group Plc rose +5.9% after increasing its dividend and announced a special payout. Fresnillo Plc gained +1.5% after raising its gold output forecast following a surge in profit.
US stocks declined as a drop in oil prices dragged down energy stocks. The Dow Jones Industrial Average (-0.15%) and the S&P 500 (-0.13%) both retreated, while the Nasdaq Composite (+0.43%) advanced. The S&P 500 had hit a record high earlier in the session, but was unable to hold gains as US crude slumped to below $40 a barrel, before settling at $40.06. Exxon and Chevron were down -3.1% and -3.3%, respectively, and the biggest drags on both the Dow and the S&P 500. Apple Inc rose +1.8%, providing the biggest boost to the three main indexes. Apple has gained more than +9% since reporting results last week. Google parent Alphabet Inc was up +1.2%.
Asian stocks fell as Japanese shares slid ahead of the announcement of a 4.6 trillion yen stimulus package and a slump in oil weighed on energy and commodity companies. The S&P/ASX 200 (-0.84%) and the Nikkei 225 (-1.47%) both dropped, while the Hang Seng (+1.09%) gained. Mitsubishi UFJ Financial Group Inc dropped -5.9% after reporting a 32% decline in net income in the first quarter from a year earlier, as negative interest rates lowered lending income and the company slowed sales of its shareholdings. ANA Holdings Inc retreated -4% after the Nikkei newspaper reported the airline’s operating profit last quarter is likely to be around 20% less than last year amid fiercer competition from budget operators on Japan-China routes. Nippon Soda Co surged +6.4% after saying it will spend about 2 billion yen buying back shares.
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.