European stocks declined following US and Asian stocks lower after comments by the Federal Reserve. The ESTX 50 (-0.91%), UK markets (-0.23%), CAC 40 (-1.00%) and the Dax (-0.60%) all posted losses in early trading. Nokia Oyj dropped -8.1% after posting first quarter profitability for its networks unit that missed analyst estimates. STMicroelectronics NV slipped -6.8% after forecasting revenue and profit that fell short of analysts’ estimates amid a slowdown in demand. Royal Bank of Scotland Group Plc retreated -1.9% after posting a larger quarterly loss than analysts estimated as it set aside more money for restructuring and currency manipulation probes. Sanofi advanced -1.1% after quarterly profit and sales exceeded projections and predicted foreign exchange effects will boost earnings by 12% this year.
US stocks declined as the Federal Reserve cited weakness in the US economy and data showed US growth slowed more sharply than expected in the first quarter. The Dow Jones Industrial Average (-0.41%), S&P 500 (-0.37%) and the Nasdaq Composite (-0.63%) all retreated. The central bank’s policy statement put in place a meeting-by-meeting approach toward the timing of its first rate hike since June 2006, making such a decision solely dependent on incoming economic data. Insurer Humana’s shares fell -7.2% after results missed forecasts. Shares of rivals also fell, including UnitedHealth, which was down -3.4%. Twitter fell -8.9%, a day after the company cut its full year forecast due to weak demand for its new direct response advertising. Wynn Resorts fell -16.6% after reporting weaker than expected first quarter profit.
Asian stocks dropped after the Federal Reserve downplayed weak US economic growth and kept raising interest rates on the table for later this year. Earnings from Japanese companies also failed to live up to expectations. The Nikkei 225 (-2.69%), Hang Seng (-1.09%) and the S&P/ASX 200 (-0.83%) were all negative. Honda Motor fell -6.7% after it forecast only a 0.4% rise in net profit for the current financial year to March. NTT Docomo dropped -6.1% as its profit guidance of 6.4% operating profit growth in 2015/16 failed to excite investors. Oriental Land, the operator of Tokyo Disney Land, fell -5.2% and Yamasaki Baking fell -9.7% after reporting earnings. Takeda Pharmaceutical dropped -3% after it reported its first annual loss in history to take charge for settlement costs of a lawsuit related to its diabetes drugs in the US. Jiangxi Copper Co plunged -2.2% after posting the lowest first quarter earnings growth since listing in 2006.
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.