European shares rose for a fourth straight session as miners tracked a rally in prices of key industrial metals. The ESTX 50 (+0.97%), UK markets (+0.68%), CAC 40 (+0.74%) and the Dax (+0.87%) all posted gains in early trading. SABMIller rose +2.8% after AB InBev increased its bid for its largest rival to £42.15 per share in cash, valuing SABMiller at nearly £68 billion. Anglo American Plc, Rio Tinto Group and BHP Billiton Ltd all rose at least +3.2% after prices of copper, aluminium and nickel rose and Morgan Stanley upgraded the shares. Seadrill Ltd and Subsea 7 SA rallied +4.4%, leading gains in energy stocks. Tesco Plc declined -3.6% after its first half operating income more than halved from a year earlier. Rexel SA dropped -2.9% after cutting its profitability target.
US stocks fell as investors focused on upcoming quarterly reports that are expected to reflect a dip in corporate earnings. The S&P 500 (-0.36%) and the Nasdaq Composite (-0.69%) both declined, while the Dow Jones Industrial Average (+0.08%) increased. The IMF cut its global growth forecasts for the second time this year, citing weak commodity prices and a slowdown in China. Underscoring concerns about the world economy, S&P 500 companies are expected to report a 4.2% fall in earnings in upcoming third quarter reports, the biggest decline in six years, according to Thomson Reuters data. DuPont rose +7.67% after CEO Ellen Kullman said she would step down. Pepsi rose +1.31% after it reported better than expected quarterly results and raised its forecast for the year. After the bell, Yum! Brands dropped -16% after reporting third quarter results that disappointed investors. Pfizer and Merck were down -2.06% and 2.79% respectively.
Asian stocks climbed, building on their biggest five day advance in almost four years, as several companies reported earnings and investors awaited a Bank of Japan decision on monetary policy. The Nikkei 225 (+0.75%), Hang Seng (+2.72%) and the S&P/ASX 200 (+0.59%) all increased. Cnooc surged +11%, while Kunlun Energy Co and PetroChina jumped +6.3% after oil futures rose as much as 2.4% in New York as US industry data showed crude stockpiles fell and the Energy Information Administration increased its forecast for 2015 global oil demand. Inpex Corp surged +7.2%. Ryohin Keikaku Co lost -6.9% after analysts said the company’s earnings report was slightly negative. Yamada Denki Co jumped +6.6% after Mitsubishi UFJ Morgan Stanley raised its rating on the company.
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.