US equities were once again strong in Tuesday’s trading session with the S&P 500 back close to it’s all time high. Consumer Price inflation of 0.3% in June showed that despite the recovery, inflation simply has not been an issue thus far in the economic recovery. Companies reporting yesterday included Peabody Energy up 1.2%, Comcast also rose 1.2% and the restaurant company, Chipotle, surged 11%. On the negative side, Coca Cola lost 3% on results that missed expectations, reflecting sluggish demand in the juice business. Harley-Davidson lost nearly 6% on reduced sales volume and Kimberly-Clark fell 2.6%.
In Asia there was more optimism on China, with the MSCI Asia Pacific Index finishing at a six year high. In South Korea, the confectionery company, Lotte, gained just over 8% on new that the parent company is considering unwinding cross shareholdings. After positive results from Apple there were rises among the suppliers with AAC Technologies up 1%, Sharp rose 1.2% and TCL Corp rose 1.7%. On the negative, Tokyo Electron lost 3% after strong opposition to the proposed merger with Applied Materials. Financials in Japan also trended lower with Softbank down 1.3%, Aplus Financial dropped just over 3% and Japan Exchange fell 2%. In Australia, Magellan Financial was up 7% on news of strong fund inflows.
Europe is relatively quiet in early trading. Akzo Nobel, Europe’s largest paint company has reported strong second quarter results and the shares are up over 4%. The company is benefitting from stronger sales revenue combined with previous cost cutting. In Germany, Daimler is up just over 2% after reporting results ahead of expectations. However, in Switzerland, industrial giant ABB is down nearly 1.5% on a profit shortfall. There are few standout features in the UK, although support services company, Capita, is up 3% on strong results.
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.