European stocks were negative this morning ahead of a Federal Reserve decision on monetary policy and data on growth in the world’s largest economy. The ESTX 50 (-0.45%), UK Markets (-0.04%), CAC 40 (-0.38%) and the DAX (-0.20%) all posted losses in early trading. Banco Bilbao Vizcaya Argentaria SA slipped -1.1% after reporting a drop in first quarter profit. BNP Paribas SA fell -2.3% despite reporting first quarter profit had increased 5.2%, helped by the purchase of the rest of its Fortis unit in Belgium. Alstom SA added +11% after saying it has approved plans to start official talks with General Electric Co about the sale of the company’s energy business. Rolls-Royce Holdings Group Plc advanced +1% after saying it’s in talks to sell power-generation assets to Siemens. The planned disposal concerns the energy gas turbine and compressor business. Bayer increased +1.3% after it was reported that the company is trying to beat an all-cash bid by Reckitt Benckiser Group Plc for Merck & Co’s consumer business. Sanofi climbed +1.1% after Reuters reported that the company may sell a portfolio of mature pharmaceuticals that could fetch between $7 billion and $8 billion.
US stocks rose as several companies reported results that topped estimates and before a federal decision on monetary policy. The Dow Jones Industrial Average (+0.53%), S&P 500 (+0.48%) and the Nasdaq Composite (+0.72%) all advanced. Merck rose +3.6% as earnings were helped by cuts in spending on promotions and research. Sprint added +11% after sales beat estimates as the company held onto more subscribers than forecast. Coach Inc fell -9.3% after sales in North American stores plunged 21% amid increased competition and bad weather. Yahoo advanced +5.4% after saying it will start two comedy shows to attract viewers to its website. Twitter Inc climbed +4.6% during regular trading but dropped -8.7% after saying membership for the first quarter reached 255 million, with user growth slowing to 25% from 30% in the previous quarter. EBay Inc slumped -3.1% after reporting sales in the current period that missed analysts’ estimates. Facebook Inc climbed +3.6% and Google Inc gained +2.6%.
Asian stocks fluctuated as investors weighed corporate earnings and the Bank of Japan refrained from expanding stimulus. The Nikkei 225 (+0.11%) and the S&P/ASX 200 (+0.05%) both made modest gains, while the Hang Seng (-1.33%) retreated. Aluminium Corp of China Ltd fell -3.5% after its first quarter loss widened. Woolworths Ltd slipped -1.9% after sales fell short of expectations. Kyocera Corp climbed +3.4% in Tokyo after reporting full year profit that beat analyst estimates. Industrial & Commercial Bank of China Ltd slid -1.5% after reporting its weakest quarterly profit growth in almost five years. DBS gained +1% in Singapore after first quarter profit unexpectedly rose. Oversea-Chinese Banking advanced +2.4% after reporting a 29% jump in quarterly income.
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.