European stocks were mixed as investors awaited the outcome of the European Central Bank’s policy meeting. The ESTX 50 (+0.08%) and the CAC 40 (+0.13%) both posted gains in early trading, while the UK Markets (-0.23%) and the DAX (-0.10%) both retreated. Smith & Nephew Plc gained +6% as Medtronic Inc was said to consider a takeover of the company. Deutsche Telekom gained +0.6% after it was reported that Sprint Corp is nearing an agreement on price, capital structure and termination fee of an acquisition for T-Mobile US Inc. Asos tumbled -35% after forecasting that earnings will be about 4.5% of sales for the year through August, compared with a previous margin estimate of 6.5%. Retail sales increased 25% in the quarter through May after rising 26% in two months through February. Remy Cointreau fell -1.8% after reporting that operating profit fell 39% for the 12 months through March missing the €157.5 million average analyst estimate compiled by Bloomberg. Volvo AG slipped -1.1% after UBS AG cut its rating on the company to “sell” from “neutral”.
US stocks rose amid better than forecast data on service industries before a European Central Bank decision on stimulus and a monthly employment report. The Dow Jones Industrial Average (+0.09%), S&P 500 (+0.19%) and the Nasdaq Composite (+0.41%) all made gains. Prudential climbed +2.4% and MetLife increased +3% after the Senate approved a bill that gives Fed regulators more flexibility in how they apply capital rules to the biggest US life insurers. Medtronic Inc climbed +3.6% as it evaluates a takeover of Smith & Nephew Plc that could see the US company move its tax domicile overseas. Smith & Nephew surged 12% in US trading. Coach declined -2.6% after having its rating downgraded to “neutral” from “buy” at Sterne, Agree & Leach. Protective Life soared +18%. Dai-ichi will buy the company in the biggest foreign acquisition by a Japanese life insurer. Under Armour added +4.9% after being raised to “buy” from “hold” at Jefferies, who cited its long term sales potential, the brands growing popularity among young people and women and its valuation after recent declines.
Most Asian stocks fell as energy and health-care firms retreated and investors await a policy decision from the ECB. The Hang Seng (-0.18%) and the S&P/ASX 200 (-0.15%) both declined, while the Nikkei 225 (+0.08%) was slightly up. Energy shares led the retreat in Asia. China Oilfield Services fell -3.1% in Hong Kong. SK Innovation Co declined -3.3% in Seoul and PTT Exploration & Production Pcl, Thailand’s biggest publicly listed oil and natural gas explorer, sank -1.6%. LG Household & Health Care declined -12% in Seoul after the company’s vice-chairman sold 22,000 of the 32,000 shares he owned. Samsung SDI advanced +6.7% and Cheil Industries Inc gained +6.4%. Both South Korean companies said on 3rd June they will sell treasury shares to Samsung Electronics.
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.