European stocks climbed amid corporate earnings and increased deal activity. The ESTX 50 (+0.33%), UK markets (+0.22%), CAC 40 (+0.42%) and the Dax (+0.47%) all posted gains in early trading. Royal Bank of Scotland Group Plc added +3.6% after unexpectedly posting a profit. Deutsche Bank AG gained +3% after quarterly net income more than tripled. Nokia Oyj jumped +8.4% after network equipment profitability improved. Royal Dutch Shell Plc advanced +3% after saying it will cut jobs and investments, and agreeing to sell a stake in a Japanese refiner. AstraZeneca Plc climbed +1.8% after reporting quarterly earnings and sales that beat analysts’ predictions. Telefonica SA gained +1.1% after its second quarter sales topped projections.
US stocks rose after the Federal Reserve said the economy and job market continued to strengthen and left its key interest rate unchanged. The Dow Jones Industrial Average (+0.69%), S&P 500 (+0.73%) and the Nasdaq Composite (+0.44%) all increased. The central bank’s comments on the economy and inflation appeared to do little to drastically change expectations that the first hike will come in September or possibly December. After the bell, Facebook and Whole Foods market dropped -4% and -11% respectively, following quarterly reports that left investors wanting more. Twitter fell -14.5% after saying its number of monthly average users rose at the slowest pace since it went public in 2013. General Dynamics rose +3.93% after reporting earnings.
Asian shares gained after the US Federal Reserve painted a relatively bright picture of the economy. The Nikkei 225 (+1.08%) and the S&P/ASX 200 (+0.81%) both advanced, while the Hang Seng (-0.18%) declined. Nomura Holdings Inc rose +3% in Tokyo after first quarter profit more than tripled as brokerage commissions and investment banking fees outweighed a drop in trading income. Daiwa Securities Group Inc advanced +3.3% after also posting a larger than anticipated earnings increase. A weaker yen and sales of a new video game boosted profit at Nintendo, sending shares +8.3% higher. Hitachi soared +6.5% after first quarter net income grew by almost a third. China Shenhua Energy Co fell -1.3% after reporting a 46% drop in first half net income to 11.7 billion yuan.
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.