European shares retreated amid mixed earnings, while the euro traded near a nine month low versus the dollar. The ESTX 50 (-0.48%), UK markets (-0.24%), CAC 40 (-0.29%) and the Dax (-0.79%) all posted losses in early trading. Portugal’s Banco Espirito Santo SA had trading in its shares paused after falling 29% in four days. The bank said it needs to raise capital after posting a first half net loss of €3.6 billion. Adidas plunged -9.7% after projecting net income of €650 million compared with a previous forecast for as much as €930 million. Fresenius jumped +5% after boosting its 2014 sales outlook. BNP Paribas climbed +1.9% despite posting a €4.32 billion loss, the largest in its 14 year history. Metro AG dropped -3.3% after it reported fiscal third quarter profit that met analysts’ estimates. BT Group gained +1.8% after reporting first quarter earnings that exceeded analysts’ estimates. Weir Group Plc slid -4% after saying currency fluctuations will continue to affect results.
US stocks were little changed as data showing better than forecast economic growth was offset by weaker earnings and the Federal Reserve’s decision to keep trimming asset purchases. The Dow Jones Industrial Average (-0.19%) was slightly down, the S&P 500 (+0.01%) was flat and the Nasdaq Composite (+0.45%) advanced. Genworth Financial Inc declined -14% after the insurer said it was reviewing whether enough funds had been set aside for claims. Public Service Enterprise Group Inc led a -1.7% retreat among utilities after earnings trailed estimates. Twitter Inc soared +20% as World Cup related demand helped the company double revenue. Regeneron climbed +5.8% after saying the Food and Drug Administration approved its Eylea injection for the treatment of diabetic macular edema. DreamWorks Animation SKG Inc plunged -12% after posting a second quarter loss and said securities regulators are investigating a writedown.
Asian stocks were mixed as Samsung Electronics Co and Nintendo Co led information technology shares lower. The Nikkei 225 (-0.16%) declined, while the Hang Seng (+0.10%) and the S&P/ASX 200 (+0.18%) both increased. Samsung sank -3.7% in Seoul after posting net income that fell short of expectations amid increased competition from Apple Inc and Chinese producers. Nintendo slumped -6.5% in Tokyo after reporting its third loss in the past four quarters. Singapore Airlines Ltd slipped -2.6% after reporting weaker earnings. Exporters advanced after a Commerce Department report showed GDP expanded at a 4% annualised pace in the second quarter, confirming the Fed’s view that a first quarter contraction was transitory. James Hardie, a company that gets about 73% of sales from the US, climbed +1.5% in Sydney. LG Display Co jumped +4.6% in Seoul.
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.