European stocks were little changed ahead of data that may show German unemployment fell for the first time in five months and as investors weighed China’s tighter rules to control its shadow banking industry. The ESTX 50 (-0.01%), UK Markets(-0.01%), CAC 40 (-0.15%) and the DAX (-0.01%) were all flat in early trading. Swedish Match AB dropped -6.5% after Citigroup Inc advised investors to sell the shares. Hugo Boss slid -2.4% after Societe Generale downgraded the shares to “hold” from “buy”. BASF SE rose +2.9% after UBS AG recommended buying the stock. Deutsche Boerse AG dropped -1.4% for the biggest decline in the DAX. Commerzbank AG and Deutsche Bank climbed more than +1.3% each. The Ashtead Group Plc (+1.08%), ITV Plc (+0.71%) and Barclays Plc (+0.58%) were the biggest gainers in the UK this morning, while Fresnillo Plc (-1.97%), Rio Tinto Plc (-1.07%) and the Royal Mail Plc (-0.87%) were the biggest drags.
US stocks fell after slower than forecast growth in service industries. The Dow Jones Industrial Average (-0.27%), S&P 500 (-0.25%) and the NASDAQ Composite (-0.44%) all declined. Twitter Inc fell -3.9% after Morgan Stanley said investors should sell the shares because it may lose online advertising revenue to larger rivals like Facebook Inc. Whole Foods Market Inc fell -3.5% after an analyst report cited risks from increased competition. Verizon Communications Inc climbed +0.6% after T-Mobile US Inc agreed to buy airwaves from Verizon Wireless for about $2.4 billion. EBay Inc slid -2.8% after Morgan Stanley cut the shares to “equalweight” from “overweight”. First Solar Inc lost -9.7% for the biggest drop in the S&P 500 after Goldman Sachs cut the stock to “sell” from “buy”, saying the company’s valuation may contract as earnings decline.
Asian stocks fell as a report showed US service industries expanded less than expected. The Nikkei 225 (-0.59%) and the S&P/ASX 200 (-0.15%) both retreated, while the Hang Seng (+0.13%) increased. Oversea-Chinese Banking Corp fell -0.8% in Singapore amid concern it may pay too much to take over Hong Kong’s Wing Hang Bank Ltd. Li & Fung Ltd gained +8.5% in Hong Kong as the company called its 2013 performance solid. Shanghai Petrochemical lost -5.9%, leading raw material shares lower. Fortescue Metals Group Ltd declined -4.7%. Samsung Electronics Co fell -0.2% after posting its first profit decline in nine quarters.
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.