European stocks declined as investors weighed valuations. The ESTX 50 (-0.24%), UK markets (-0.10%), CAC 40 (-0.16%) and the Dax (-0.06%) all posted losses in early trading. Erste slipped -12% after forecasting a 2014 net loss of as much as €1.6 billion because of bad debt charges and writedowns in Hungary and Romania. The Austrian bank that earns most of its income in Eastern Europe predicted loan-loss provisions will rise to €2.4 billion this year, 40% more than previously estimated. EasyJet added +2.7% after saying it transported about 6.1 million passengers in June, compared with 5.54 million a year earlier. JC Decaux rose +5.1% after HSBC upgraded the shares to “neutral” from “underweight”, citing an attractive valuation after a recent drop. BT Group Plc increased +0.98% after agreeing an insurance and reinsurance deal to protect its pension scheme against the costs associated with increases in life expectancy.
US stocks climbed as data showed employers added more workers than projected in June and the ECB disclosed details of its stimulus plans. The Dow Jones Industrial Average (+0.54%), S&P 500 (+0.55%) and the Nasdaq Composite (+0.63%) all advanced. Life insurers like Lincoln National Corp and MetLife benefit from climbing bond yields, which allow them to invest clients’ premiums and maturing securities at higher interest rates. MetLife added +2% and Lincoln National increased +2.1%. Goldman Sachs added +1.5% for the biggest advance in the Dow. Lorillard Inc climbed +5.3% after CNBC reported that the company may be taken over by Reynolds American Inc. Lululemon rose +2.9% after the Wall Street Journal reported that advisors to founder Chip Wilson have been talking to private equity firms about taking the company private. Cree Inc added +5% after being raised to “outperform” from “market perform” at Oppenheimer & Co.
Asian stocks rose after US unemployment slid to the lowest level since before the peak of the financial crisis. The Nikkei 225 (+0.58%) and the S&P/ASX 200 (+0.61%) both gained, while the Hang Seng (-0.02%) was flat. Companies that do business in the US rose. Mazda Motor gained +1.2% in Tokyo. Techtronic Industries Co, a company that gets 73% of its sales in North America, added +1.2% in Hong Kong. Semiconductor Manufacturing International jumped +8.7% after announcing it will work with Qualcomm to make its Snapdragon processors. Seven & I Holdings added +2% after first quarter operating profit rose +5.1% from a year earlier. HTC Corp jumped +1.1% in Taipei after returning to profit as the release of its marquee M* smartphone and a cut in marketing costs helped stem the effects of a continued decline in sales.
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.