Asian stocks fell after faster US economic growth fuelled concern the Federal Reserve may reduce stimulus sooner than expected. The Nikkei 225 (-1.00%), Hang Seng (-0.60%) and the S&P/ASX 200 (-0.39%) all retreated. Sony Corp, a company that gets 68% of sales outside Japan, lost -2.7% after the yen’s surge against the dollar yesterday weighed on Japanese exporters. Panasonic Corp declined -2.6%, Toyota Motor Corp fell -1.1% and Honda Motor Co slid -0.8%. Fortescue Metals Group Ltd sank -4.2% after Teck Resources Ltd sold a stake worth about $473 million in the company. Samsung Electronics Co preferred shares declined -5% in Seoul after Citigroup Inc managed the sale of $350 million stake in the electronics manufacturer. DeNA Co slumped -11% after reporting a larger than forecast decline in second quarter profit.
European stocks dropped after Standard & Poor’s France’s credit rating and investors awaited data on American jobs. The ESTX 50 (-0.53%), FTSE 100 (-0.28%), CAC 40 (-0.70%) and the DAX (-0.56%) all posted losses in early trading. France’s long-term foreign and local currency credit rating was lowered one step to AA from AA+ by S&P, citing slower growth that will constrain the government’s ability to improve public finances. French banks were among the biggest losers, with Societe Generale down -1.3% and Natixis down -1.2%. Telefonica SA slipped -1% after reporting a 13% slide in third quarter profit before some items. International Consolidated Airlines Group SA rose +3.6% after saying third quarter earnings more than doubled and raised its full year outlook. Cie Financiere Richemont slid -1.8% after posting first half operating profit that missed analysts’ estimates. Puma SE fell -3.1% after lowering its full year profit forecast. K+S AG added +2.7% after JPMorgan upgraded Europe’s biggest potash distributor.
US stocks fell as speculation the Federal Reserve may scale back stimulus amid faster than estimated economic growth overshadowed a move by the ECB to cut their interest rate. The Dow Jones Industrial Average (-0.97%), S&P 500 (-1.32%) and NASDAQ Composite (-1.90%) all declined. Twitter Inc, which raised $1.82 billion in its IPO, rallied +73% in its debut. Qualcomm Inc dropped -3.8% after predicting quarterly sales that missed analysts’ estimates. J.C.Penney Co jumped +5.6% after posting its first rise in monthly same stores sales in two years. Whole Foods Markets Inc slumped -11% after cutting its profit forecast. Tesla Motors Inc plunged -7.5% after a Model S sedan fire yesterday, the third in five weeks involving the car. SolarCity Corp tumbled -17% company predicted a loss that surpassed the average analyst estimate. Transocean Ltd jumped +7% after posting third quarter adjusted earnings that beat analyst estimates.
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.