US equities closed mixed on Tuesday as investors responded to a number of company results. JP Morgan and Wells Fargo beat analyst expectations with the stocks rising 1.56% and falling 0.73% respectively. Goldman Sachs was up 1.1% and Morgan Stanley gained 1.5%. The latest consensus earnings projection from Thomson Reuters for the US market is a 2.7% year on year decline, hit mainly by the strength of the US$. Other gainers included Merck up 1.8%, Nabors up 3.8% and Transocean up 4.9%. Losers included Abercrombie & Fitch down 2.3%, Google down 1.6% and Norfolk-Southern lost 4.4%.
Asia was also mixed in trading with the Chinese economy posting the lowest GDP figure in six years. The Shanghai index fell 1.2% on the news, which was also combined with industrial production that was weaker than any economic survey. Brokers were hard hit by the news with Citic Securities down over 3%, Haitong Securities was down a similar amount and Northeast lost nearly 7%. Conversely the Australian mining sector was boosted by higher Chinese import data with Rio Tinto up 1.6%, BHP up 1.3% and Fortescue up 1.1%. In Japan, JGC Corp fell 6.6% on a profit warning, whilst Japan Airlines surged over 5% on a Nomura upgrade.
Europe is higher with news of the confirmed £11 billion Nokia takeover of Alcatel. It will create the world’s largest supplier of mobile phone network equipment. Having gained yesterday, Alcatel is actually down over 11%, whilst Nokia is up 1.35%. After a poor day for the Banking sector on Tuesday, Deutsche Bank is up 1.2%, Credit Agricole is up 1.5% and Credit Suisse is up nearly 1%. Other gainers include Seadrill up 5%, CRH is up 2.5% and Statoil is 1.6% higher. Miners are also boosting the UK market with Glencore up 3.4% and Fresnillo up 2.9%.
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.