European shares retreated amid tension over Ukraine and before the European Central Bank decides monetary policy. The ESTX 50 (-0.01%), UK markets (-0.19%), CAC 40 (-0.08%) and the Dax (-0.04%) all posted losses in early trading. Munich Re dropped -5.5% after the world’s biggest reinsurer announced profit that missed estimates. Rio Tinto Plc climbed +1.6% after first half profit gained 21% after it shipped record volumes of iron ore. Nestle SA climbed +2.2% after saying it will buy back shares. Aviva gained +2.92% after announcing a 4% rise in first half 2014 operating profit despite the impact of lower annuity sales, higher weather losses, disposals and adverse foreign exchange movements. RSA Insurance Group Plc declined -0.32% after announcing that it aims to restart dividend payments with its 2014 full year results as it posted a significant fall in first half pre-tax profit.
US stocks were little changed as declines in Sprint Corp and Time Warner Inc on failed deals offset gains in consumer staples. The Dow Jones Industrial Average (+0.08%), S&P 500 (0.00%) and the Nasdaq Composite (+0.05%) all finished the session fairly flat. Sprint slid -19% after a deal to merge with T-Mobile US Inc collapsed. T-Mobile retreated -8.4%. Time Warner tumbled -13% after 21st Century Fox Inc withdrew its unsolicited takeover bid. Fox climbed +3.3% as it authorised a $6 billion buyback plan. Walgreen Co retreated -14% after saying it will pay about $15.3 billion for the shares in Alliance Boots it doesn’t already hold, and won’t use the deal to move its tax address abroad. Groupon Inc slumped -13% after forecasting third quarter earnings of no more than 2 cents a share, missing analysts’ estimates. Bank of America Corp gained +1.3% after raising its quarterly dividend to 5 cents a share and dropped plans to buy back stock after the Fed approved its resubmitted capital plan for 2014.
Asian stocks fell as tensions mounted over Ukraine and casino shares slumped. The Hang Seng (-0.85%) and the S&P/ASX 200 (-0.05%) both declined, while the Nikkei 225 (+0.48%) advanced. DeNA Co plunged -7.1% in Tokyo after predicting a decline in first half profit. Galaxy Entertainment Group ltd dropped -6.5%, pacing losses among Macau casino operators, after the world’s largest gambling hub posted the weakest monthly growth in mass market revenues since 2010. Sands China Ltd fell -6.2%. Wynn Macau Ltd sank -7.4% and MGM China Holdings Ltd slipped -5.8%. Mitsui Fudosan Co fell -1.3% after reporting lower quarterly net income. Meiji Holdings Co jumped +12% in Tokyo after reporting net income rose 13% to 7.4 billion yen.
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.