European shares retreated amid some weak corporate results. The ESTX 50 (-0.14%), CAC 40 (-0.14%), Dax (-0.01%) and the UK markets (-0.39%) all posted losses in early trading. Novozymes slid -9.2% after reporting second quarter earnings below expectations. KBC rising +3.5% after it posted higher profits. Zurich Insurance Group AG slipped -3.5% after reporting earnings that trailed projections. Munich Re AG climbed +3.1% after raising its full year profit forecast. BP Plc and Total SA lost -1% each, pushing oil and gas shares to the worst performance among European industry groups.
US stocks rose as tech shares advanced. The S&P 500 (+0.31%) and the Nasdaq Composite (+0.67%) both gained, while the Dow Jones Industrial Average (-0.06%) declined. Disney’s shares fell -9.2% after it cut its profit forecast for its cable networks unit, fuelling concern for the entire industry. Comcast fell -4.7%, Discovery Communications lost -12.1% and Twenty-First Century Fox fell -7%. Disney’s shares are still up +17.3% year to date, compared with a 2% on the S&P 500. First Solar jumped +16.7% after it reported sharply higher quarterly sales and earnings and said results for the year would top Wall Street estimates. Chesapeake Energy tumbled -12.1% on worries about hefty debt and spending at the company. Apple added +0.7%.
Asian stocks were mixed despite optimism over the US economy and as the yen weakened. The S&P/ASX 200 (-1.13%) and the Hang Seng (-0.56%) both retreated, while the Nikkei 225 (+0.24%) advanced. Nippon Telegraph & Telephone Corp rose +4.6% after saying it will buy back as much as 100 billion yen of shares. Meiji Holdings Co surged a record +18% after boosting its profit forecast. Ebara Corp slumped -7.4% after posting a wider net loss. Toyota Motor Corp added +1.5% as the yen weakened. Global exporter Li & Fung fell -3.9% to their lowest level since January 2009.
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.