European shares traded flat this morning, the modest moves masking significant results driven games by several companies on a bust day for European earnings. The ESTX 50 (+0.18%), UK markets (+0.06%) and the Dax (+0.14%) all posted modest gains in early trading, while the CAC 40 (-0.04%) was slightly negative. Adidas jumped +8.2% after it increased sales and profit growth targets, having posted a 12.5% increase in 2016 sales. The move adds more than 2 billion dollars to the company’s market value. Adidas lifted its mid-term sales growth target to 10% – 12%. G4S rose +6.7% after it posted its first rise in revenue in four years, and reported a cut in leverage. EDF dropped -8.3% and hit a fresh all-time low after the French government sold 231.1 million preferential shares in the firm as part of EDF’s capital hike.
US stocks finished the session lower as weakness in pharmaceutical and financial shares sent the S&P 500 and the Dow to their first consecutive declines in more than a month. The Dow Jones Industrial Average (-0.14%), S&P 500 (-0.29%) and the Nasdaq Composite (-0.26%) all decreased. Pharmaceutical stocks came under pressure after President Trump tweeted he was working on a new system to reduce treatment prices in the industry, without providing details. Trump also backed a draft bill unveiled by Republicans to repeal and replace the Obamacare healthcare law, but said the bill was open to negotiation. Snap Inc plunged -9.8% after analysts gave the company a lukewarm reception following its red-hot market debut, attracting short-sellers. Nimble Storage soared +46.3% after Hewlett Packard Co said it would buy the company for $1.09 billion in cash.
Asian stocks were mixed after China posted a shock trade gap. China posted an extraordinary set of official February trade data. The Nikkei 225 (-0.47%) and the S&P/ASX 200 (-0.03%) declined, while the Hang Seng (+0.43%) increased. Contrary to expectations it chalked up a large deficit in yuan terms, the first since early 2014. Behind the headline was the impressive detail that imports had risen more than 44% on the year. The data was probably skewed by the timing of the Lunar New Year celebrations, but even allowing for that demand looks pretty robust. Nintendo Co Ltd climbed +2.6% after magazine Famitsu reported that a hybrid home console and handheld device that Nintendo released on March 3rd sold an estimated 330,637 units in the first three days. Takeda Pharmaceutical Co Ltd dropped -1%, Ono Pharmaceutical Co Ltd shed -1.4% and Eisai Co Ltd declined -1.4% following President Tumps comments regarding drug pricing.
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.
Morning Spread 26th September 2016 Asian shares declined following losses on Wall Street as investors attention turned from central banks to American politics ahead of the first US presidential debate.