European stocks advanced as banks continued their rebound. The ESTX 50 (+0.41%), CAC 40 (+0.51%) and the UK markets (+0.02%) all posted gains in early trading, while the Dax (-0.08%) was down. European banks are heading for their best monthly performance since February 2015, supported by earnings that beat analysts’ estimates for the first time in a year. Commerzbank AG led banks to the best performance among industry groups, rising +4% after Manager Magazin reported that rival Deutsche Bank AG considered the possibility of a merger. Bouygues SA added +3.8% after saying average revenue per mobile user stabilised and it reiterated a 2016 target to improve profitability. Iliad SA gained +4% after reporting an increase in first half sales and earnings.
US stocks declined as Apple weighed on the major indexes, but gains in bank shares partly offset the decline. The Dow Jones Industrial Average (-0.26%), S&P 500 (-0.20%) and the Nasdaq Composite (-0.18%) all retreated. Apple dropped -0.77% after the European Commission ordered the company to pay Ireland €13 billion in unpaid taxes, as it ruled the firm had received illegal state aid. Hershey dropped -11.2% after Mondelez abandoned its pursuit to buy the company. Mondelez rose +3.7%. Abercrombie & Fitch plunged -20.3% after posting its 14th straight quarter of declining sales and said it no longer expects comparable sales to improve this year.
Asian stocks were mixed, with Japanese shares wiping out a monthly decline, as car manufacturers rallied on a weaker yen amid expectations for an increase in US interest rates this year. The Hang Seng (-0.17%) and the S&P/ASX 200 (-0.83%) both retreated, while the Nikkei 225 (+0.97%) rallied. Toyota Motor Corp rose +0.84%, Nissan Motor Co added +1.4% and Canon Inc gained +1.7% as they benefited from the weaker yen. Bank of China gained +1.2% after it reported a 2.5% rise in first half net profit, lifted by strong growth in fee income. Hyundai Merchant Marine Co surged +21% after the government prodded the company to acquire the healthy assets of Hanjin Shipping Co, which is teetering on the verge of bankruptcy following a decision by its creditors to cut financial support.
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.