European markets were mixed as several company reported results. The ESTX 50 (-0.24%), CAC 40 (-0.08%) and the Dax (-0.21%) all posted small drops this morning, while the UK markets (+0.50%) were up. UBS rose +4.7% after saying net income in the first three months of the year almost doubled. Adidas added +1.8% after reporting first quarter earnings that topped forecasts. Infineon Technologies AG advanced +2.5% after reporting better than estimated quarterly sales. Diageo Plc added +1.2% after saying potential acquirers have expressed interest in its wine business. BP Plc and Royal Dutch Shell Plc climbed more than +1%. TUI AG advanced +3.3%, which was the biggest increase in the UK markets. Aberdeen Asset management Plc slid -2.3% after saying clients withdrew more money from its funds. Glencore Plc fell -1.1% as it reported that copper production declined in the first quarter.
Asian stocks retreated and the Australian dollar dropped after the central bank cut interest rates for the second time in four months as the region’s growth falters in the face of slowing demand from China. The Nikkei 225 (+0.06%) and the S&P/ASX 200 (-0.02%) were fairly flat, while the Hang Seng (-1.64%) dropped. Australia & New Zealand Banking Group Ltd jumped +3.8% in Sydney after posting a record first half cash profit. Fortescue Metals Group Ltd rose +3.1% in Sydney after Vale SA signalled that it may be willing to moderate supply growth amid a glut in iron ore. Alibaba Pictures Group Ltd declined -7.3% in Hong Kong after actress Zhao Wei and her husband sold shares in the company. China Oilfield Services Ltd and Offshore Oil Engineering Co jumped more than +7% on industry reform speculation. Poly Real Estate Group Co slumped -7.8%.
US stocks rose as corporate earnings came in better than anticipated. The Dow Jones Industrial Average (+0.26%), S&P 500 (+0.29%) and the Nasdaq Composite (+0.23%) all increased. With three quarters of corporate earnings reports in, investors are now trying to guess when the US Federal Reserve will begin raising interest rates. An April payroll report due on Friday could provide a hint. Mondays’ rally in utilities suggested some investors believe the Fed will not raise rates soon and may be looking for yield. Berkshire Hathaway Inc rose +1.6%, giving the biggest boost to the S&P 500 after reporting results that beat forecasts. Cognizant surged +6.2% after reporting better than expected rise in revenue and raised its full year forecast. McDonald’s Corp closed -1.7% lower after its plan to modernise the company failed to impress investors.
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.