European stocks retreated as energy stocks dropped and investors weighed earnings reports. The ESTX 50 (-0.60%), CAC 40 (-0.50%), DAX (-0.12%) and the UK markets (-0.10%) all posted losses in early trading. Credit Agricole slumped -8% after it booked an additional €350 million in litigation provisions while posting second quarter results. BMW also fell -2.7% after its second quarter operating profit eased 3% on slowing China sales, leading the company to caution that while it still expects new records for sales in the full year, earnings momentum was slowing. Royal Bank of Scotland Group Plc slipped -0.8% after the UK government sold a 5.4% in the bank at a discount to yesterday’s closing price.
US stocks declined as tumbling oil prices dragged energy shares to a three year low and factory data from China added to concerns about weakening growth in the world’s second largest economy. The Dow Jones Industrial Average (-0.52%), S&P 500 (-0.28%) and the Nasdaq Composite (-0.25%) all declined. Consol Energy Inc plummeted -7.6%, while Noble Energy Inc and Chesapeake Energy Corp dropped more than -4.2%. West Texas Intermediate crude reached its lowest since March. Alpha Natural Resources Inc plunged -24% to a record low after filing for bankruptcy, becoming the latest victim of the coal industry’s worst downturn in decades. Tyson Foods Inc tumbled -10% after cutting its earnings forecast. Frontier Communications jumped +9.1% after raising its cash flow and capital spending outlooks. Apple fell -2.4%.
Asian shares were mixed as focus turned to a key US employment report that could give valuable pointers to the timing of the Federal Reserve’s planned interest rate increase. The Nikkei 225 (-0.14%) and the Hang Seng (-0.16%) both decreased, while the S&P/ASX 200 (+0.33%) increased. Maruha Nichiro Corp tumbled -7.4% after reporting a 44% drop in net income. Kansai Electric Power Co added +3.4%. Nippon Soda Co surged +6% after boosting its profit forecast. China Southern Airlines Co and China Eastern Airlines Corp jumped by the 10% daily limit as oil prices held near a six month low.
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.