European stocks were little changed ahead of tomorrow’s European Central Bank meeting. The ESTX 50 (-0.08%), UK Markets (-0.02%), CAC 40 (-0.01%) and the Dax (+0.01%) were all pretty flat in early trading. Tesco gained +0.9% after saying UK comparable sales declined 3.8% in the first quarter, less than the 4% drop predicted by analysts in a Bloomberg survey. Tesco also said trading conditions remain challenging in the UK grocery market. Volkswagen retreated -1.2% after selling preferred shares at €191 apiece to institutional investors as part of funding its acquisition of Swedish company Scania. Volkswagen is spending €6.7 billion for the stake it doesn’t already own in Scania. Sports Direct International Plc climbed +1% after Exane BNP Paribas added it to its key-ideas list. SABMiller Plc slipped -1% after Morgan Stanley downgraded the shares.
US stocks were little changed as investors awaited a European Central Bank decision on stimulus measures and a report on American employment in May. The Dow Jones Industrial Average (-0.13%), S&P 500 (-0.04%) and the Nasdaq Composite (-0.07%) all made small moves before the session closed. Krispy Kreme Doughnuts Inc dropped -15% after cutting its earnings forecast because of mounting costs and slow first-quarter sales. Quicksilver Inc slumped -41% after posting a wider loss than analysts had predicted. Hillshire Brands Co jumped +9.5% after confirming that Pilgrim’s Pride Corp has increased its bid for the company. Casino companies declined as May revenue from Macau rose 9.3%, falling short of the average analyst estimate for growth of 14.5%. Wynn Resorts Ltd and Las Vegas Sands Corp decreased more than 2.6%. Applied Materials Inc increased +4.4% after Jefferies & Co initiated coverage on the company and rated it a “buy” with a price target of $28.
Asian stocks fell as investors awaited reports on US jobs and a decision from the ECB on monetary policy. The Hang Seng (-0.67%) and the S&P/ASX 200 (-0.64%) both declined, while the Nikkei 225 (+0.22%) increased. HTC Corp tumbled -4.3% after sales slumped at the Taiwanese company. Japanese utilities retreated. Tepco fell -2%, Tohoku Electric Power Co retreated -1% and Kansai Electric Power Co declined -0.8%. Australand Property Group surged +5.6% and Stockland gained +1.8 after Frasers Centrepoint Ltd offered AUD 4.48 per share compared with Stockland’s AUD 4.43 all-share bid. Australand’s board said it intends to recommend the offer in the absence of a superior proposal. JFE Holdings Inc climbed +3.2% after Credit Suisse Group AG advised buying shares of the company.
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.