European stocks advanced this morning as better than estimated earnings offset investor concern about the health of the region’s economy. The ESTX 50 (+1.03%), UK markets (+0.56%), CAC 40 (+0.91%) and the Dax (+1.06%) all posted gains in early trading. Natixis advanced +2.3% after higher revenue from asset management and insurance helped third quarter net income rise 10%. M&S climbed +8.2% after saying first half profit rose to £268 million, exceeding the average analyst estimate of £253 million. Hannover Re rose +1.3% after saying third quarter profit exceeded the average analyst estimate. The company also confirmed its full year profit target and said net income will climb next year. ING Groep NV added +2.1% after saying it will make the final repayment of state aid on Friday, ending a six year bailout. Lafarge SA gained +1.1% after saying it will slow asset sales in the fourth quarter. Meggitt Plc jumped +6.64% after saying it will begin a share buyback.
Most US stocks fell as energy companies slumped after oil reached a three year low and several forecasts disappointed. The Dow Jones Industrial Average (+0.10%) gained, while the S&P 500 (-0.28%) and the Nasdaq Composite (-0.33%) both declined. Exxon Mobil slid -0.8% and Chevron fell -1.2% paced losses in energy shares as oil sank to as low as $75.84 a barrel in New York. Sprint plunged -16% after lowering its forecast for earnings for this year, citing the ongoing loss of customers. Priceline slipped -8.4% after forecasting fourth quarter revenue less than analysts’ estimates as customers cut back on travel plans and a stronger dollar curbs growth. Michael Kors Holdings Ltd fell -8.4% after same store sales missed estimates, raising concern that one of fashion’s biggest growth stories is losing momentum. Delta Air Lines climbed +4.2%, while United Continental Holdings Inc and American Airlines Group Inc gained more than +1.6% as the slump in crude oil boosted their earnings prospects.
Asian stocks fell as energy shares retreated after oil extended a three year low, while equities in Tokyo advanced as the yen declined on US elections. The Hang Seng (-0.63%) and the S&P/ASX 200 (-0.04%) both retreated, while the Nikkei 225 (+0.44%) increased. SoftBank Corp fell -2.3% after forecasting its first drop in operating profit. PetroChina Co sank -2.5% and China Petroleum & Chemical Corp fell -1.5% in Hong Kong as the price of oil dropped. Japanese exporters rose as the yen declined. Honda, a company that gets most of its sales outside Japan, added +2.4%, Canon Inc, a company that gets 81% of its revenue abroad, gained +1.7%. Cyberdyne Inc soared +7.6% after the price target of the company was raised at Nomura Holdings Inc. Fuji Oil Co sank -3.3% after projecting an 800 million yen loss for the first half, missing its previous forecast of a 2.1 billion yen profit.
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.