European shares gained in early trading, heading for their best quarterly performance in several years. The ESTX 50 (+0.09%), CAC 40 (+0.12%) and the UK markets (+0.08%) all posted gains in early trading, while the Dax (-0.07%) was negative. Antofagasta Plc added +2.1% after it was reported that it has explored a merger with Teck Resources Ltd. Yoox SpA jumped +6.6% after agreeing to buy Cie.Financiere Richemont SA’s Net-a-Porter business for about $719 million. Cie.Financiere Richemont slipped -0.3%. Kingfisher rallied +4.6% after announcing plans to sell about 60 B&Q stores in Britain as part of new CEO Veronique Laury’s plan to shake up the group.
US stocks climbed, rebounding from a sharp decline last week, helped by deal activity in healthcare and a bounce in energy shares. The Dow Jones Industrial Average (+1.49%), S&P 500 (+1.22%) and the Nasdaq Composite (+1.15%) all advanced. On the deal front, OptumRX Corp, a unit of UnitedHealth Group, agreed to buy pharmacy benefit manager Catamaran Corp in a deal worth $12.78 billion. UnitedHealth rose +2.5%, while US shares of Catamaran added +23.8%. Teva Pharmaceutical said it would buy Auspex Pharmaceuticals Inc for $3.5 billion. Horizon Pharma Plc said it would acquire Hyperion Therapeutics Inc in an all cash deal worth about $1.1 billion. US shares of Teva were up +0.9% while Auspex added +41.5%. Horizon rose +18.2%, while Hyperion rose +7.6%.
Asian stocks rose after a rally on Wall Street and steps by China to shore up its economy boosted risk appetite. The Hang Seng (+0.31%) and the S&P/ASX 200 (+0.78%) both increased, while the Nikkei 225 (-1.05%) dropped. Shimamura Co dropped -7.1% after reporting full year earnings that missed its forecast. Aozora Bank Ltd slid -3.6% after Mitsubishi UFJ Morgan Stanley Securities Co cut its rating on the stock to “underweight” from “neutral”. Japanese companies that do business in China rallied after the People’s Bank of China took steps to revive a slumping property market. Toto Ltd, a company that gets 10% of its sales from China, jumped +4.6%. Nihon Flush Co, a company that gets more than half its sales from China, climbed +4.3%. Chinese banks surrendered their early gains. China State Construction (-3.3%), Bank of China (-1.6%) and the Agricultural bank of China (-1.9%) all posted losses.
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.