European stocks were mixed as investors considered mixed earnings results and disappointing Chinese output data. The ESTX 50 (-0.07%), CAC 40 (-0.06%) and UK markets (-0.29%) all posted losses in early trading, while the Dax (+0.22%) increased. HSBC Holdings Plc fell -1.3% as RBC Capital said that banks decline in income will lead analysts to downgrade their estimates. Ryanair Holdings Plc dropped -0.7% after warning of a tough winter as rivals add capacity and competition intensifies. Commerzbank AG rose +4.8% after saying quarterly earnings increased by 25%, while Chief Executive Officer Martin Blessing prepares to leave the company.
US stocks declined after a mixed bag of earnings reports. The Dow Jones Industrial Average (-0.52%), S&P 500 (-0.48%) and the Nasdaq Composite (-0.40%) all retreated. CVS Health fell -4.8% after a disappointing profit forecast for 2016. AbbVie jumped +10.1%, the biggest positive driver for the S&P 500, after better than expected profit and a strong long term outlook. Valeant Pharmaceuticals dropped -15.9% to $93.77, its lowest since July 2013, after cutting all ties with speciality pharmacy Philidor. LinkedIn jumped +11% and Expedia gained +7.3% after results beat estimates.
Asian stocks dropped as industrial companies declined following data signalling a contraction in Chinese manufacturing. The Hang Seng (-1.19%), Nikkei 225 (-2.10%) and the S&P/ASX 200 (-1.41%) were all negative. Kobe Steel Ltd tumbled -6.5% in Tokyo after its net income forecast. China Mengniu Dairy Co slid -8.5% in Hong Kong after JPMorgan Chase & Co cut its investment rating on the stock. Westpac Banking Corp lost -2.5% in Sydney after reporting its slowest profit growth since 2009.
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.