European shares were mixed despite strong earnings from some companies. The ESTX 50 (-0.15%), UK markets (-0.48%) and the Dax (-0.22%) all posted losses in early trading, while the CAC 40 (+0.11%) was positive. Vestas Wind Systems rose +4.3% after reporting a stronger than expected third quarter operating profit before special items and raising its 2015 profit outlook. Societe Generale also advanced +4% after its third quarter income rose 2.4% as growth at its retail network and lower risk provisions helped offset weakness in investment banking. Adecco fell -8.8% after posting a surprise half billion euro net loss in the third quarter due to a €740 million impairment of goodwill. Credit Agricole SA dropped -4.3% after its net income fell at its corporate and investment bank. Amec Foster Wheeler Plc slumped -20% after saying it will halve dividends amid falling oil prices.
US stocks declined, retracing recent gains along with energy shares, while comments by Federal Reserve Chair Janet Yellen pointing to a possible interest rate hike in December added to investor caution. The Dow Jones Industrial Average (-0.28%), S&P 500 (-0.35%) and the Nasdaq Composite (-0.05%) all decreased. Stocks added to losses after comments by Yellen, who told Congress the Fed expects the economy to continue to grow at a pace that returns inflation to policy makers’ target and that if the incoming information supports that expectation, December would be a live possibility for a rate increase. Time Warner dropped -6.6% after saying rating s for its key domestic entertainment networks have dropped more than anticipated. Twenty-First Century Fox Inc dropped -5.2% after it reported lower than expected quarterly revenue. UnitedHealth declined -2.6% after WellCare Health Plans Inc announced that its new Iowa Medicaid contract will be net unprofitable over its three year contract life. WellCare shares dropped -9.1%.
Most Asian shares climbed after comments from Janet Yellen boosted the dollar against the yen spurring equity gains in Tokyo, and Chinese shares entered a bull market as state rescue efforts halted a $5 trillion rout. The Nikkei 225 (+1.00%) gained, while the Hang Seng (-0.01%) was flat and the S&P/ASX 200 (-0.94%) declined. Citic Securities Co advanced +7.4% amid speculation of state intervention in financial stocks. Japan Tobacco Inc jumped +6.8% after raising its year-end dividend. Yokogawa Electric Corp surged +6.8% in Tokyo after reporting first half operating profit doubled. SJM Holdings Ltd fell -3.7% in Hong Kong after China Merchants Securities downgraded its rating on the Macau casino operator to “sell”.
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.