European stocks climbed as Portugal bailed out Banco Espirito Santo SA, easing concern about the region’s most indebted banks. The ESTX 50 (+0.47%), UK markets (+0.11%), CAC 40 (+0.45%) and the Dax (+0.03%) all posted gains in early trading. Alcatel-Lucent SA rose +2.1% as Morgan Stanley upgraded the company to “overweight” from “equal weight”. Balfour Beatty added +1.4% after the Sunday Telegraph reported that WS Atkins, WSP and two private equity firms are competing to buy Parsons Brinckerhoff. Balfour Beatty’s merger talks with Carillion Plc collapsed last week after Balfour Beatty refused to abandon its planned sale of the New York business. Hugo Boss AG dropped -1.4% after it was reported that Permira Advisors LLP, which owns 56% of the company through its Red & Black Holding GmbH company, is in talks with advisors about a potential sale of its remaining stake.
US stocks fell giving it the biggest weekly drop in two years, as concerns over Argentina and Portugal overshadowed data that signalled the Federal Reserve may have leeway to keep rates low. The Dow Jones Industrial Average (-0.42%), S&P 500 (-0.29%) and the Nasdaq Composite (-0.39%) all retreated. JPMorgan Chase & Co and Morgan Stanley slumped more than -2.1% as a committee ruled that Argentina’s default will trigger $1 billion of credit default swaps. LinkedIn Corp jumped +12% after projecting revenue that beat forecasts. Procter & Gamble Co increased +3% as profit topped estimates amid cost reductions. Expedia Inc advanced +6.4% for the largest increase in the S&P 500 after reporting second quarter profit that beat estimates. GoPro Inc slumped -15% after reporting a net loss of $19.8 million for the second quarter.
Asian stocks swung between gains and losses as investors weighed a smaller than forecast increase in US payrolls and the bailout of a Portuguese bank. The Nikkei 225 (-0.31%) and the S&P/ASX 200 (-0.28%) both declined, while the Hang Seng (+0.24%) increased. Japanese exporters declined. Honda dropped -1.5%, Nintendo Co slid -1.1% and Panasonic Corp fell -1%. Anton Oilfield Services Group slid -4.3% in Hong Kong after the provider of oil drilling services said it expects first half profit to drop. Horizon Oil declined -6.8% after it was reported that Roc Oil will likely terminate its merger agreement with Horizon after Roc’s board unanimously recommended a rival takeover offer from Fosun International Ltd. Fosun, which agreed to buy Roc for $441 million in cash, added +0.6% in Hong Kong.
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.