Skip Header

On 24 October 2019 - Global shares: US mixed, Europe up on earnings; Asia better

Anne D Picker

Anne D Picker - Econoday

Microsoft leads tech stocks higher.

US markets

US equity indexes ended mixed Thursday on a busy day of corporate results, with good news for Microsoft leading tech stocks higher but the Dow held back by weakness among index heavyweights. The Dow industrials eased 0.1 percent, the S&P 500 rose 0.2 percent, and the NASDAQ gained 0.8 percent.

Among companies in the news, Microsoft beat expectations with strong results in cloud computing and rose 1.9 percent. Dow member Dow Inc., the chemicals firm, rose 4.6 percent on an earnings beat. Tesla, the upstart automaker, surged by 17.8 percent on better than expected quarterly results. On the downside, Ford Motor fell 6.1 percent on a big miss and lower guidance. Another Dow stock, 3M, the industrial conglomerate, fell 3.7 percent on an earnings miss.

In US economic news, a weak set of durable goods headlines for September raised the alarm for the health of the manufacturing sector while contraction in capital goods orders has deepened specific questions on the outlook for business investment. Durable goods orders fell a monthly 1.1 percent in September, on its face significantly weak but roughly near expectations, in contrast to ex-transportation orders which fell 0.3 percent to just make the bottom of Econoday's consensus range.

These data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 59 cents to US$61.63, while gold rose by US$10.30 to US$1,1504.90. The US dollar rose against most major currencies. The US Treasury 30-year bond yield was up 1 basis point to 2.26 percent while the 10-year note yield was steady at 1.76 percent.

European markets

European equities rose Thursday on supportive earnings corporate earnings and expectations for a US-China trade deal. The Europe-wide STOXX 600, the German DAX and the French CAC all rose 0.6 percent and the UK FTSE-100 gained 0.9 percent.

Autos and chemicals led the gains. BASF, the big German chemical company, rose 3 percent after affirming its guidance, while AstraZeneca, the UK pharma, rose 5.8 percent on an earnings beat to lead health care stocks higher. Daimler, the German automaker, rose 2.9 percent on upbeat earnings.

In economic news, the ECB left rates unchanged and offered a gloomy outlook for the Eurozone economy, which was confirmed by the latest economic data. According the flash PMI findings, the Eurozone economy was again struggling to achieve any growth in October. At 50.2, the composite output index was only minimally firmer than September's final 50.1 and so still barely above the 50-expansion threshold. Weakness continues to be concentrated in manufacturing where, at 45.7, the flash sector PMI was unchanged from its lowly final level at quarter-end. However, business activity in services has also slowed markedly in recent months and while its flash reading of 51.8 was marginally firmer than September's final 51.8, it was still one of the worst prints since 2014.

Asia Pacific markets

Most major Asian markets posted moderate to solid gains Thursday, with a light regional data calendar keeping the focus during the Asia trading session on Brexit developments and the ECB meeting later in the day. Hong Kong’s Hang Seng index outperformed most other regional markets with a gain of 0.9 percent, while Japan’s Nikkei and Topix indices advanced 0.6 percent and 0.3 percent respectively. Australia’s All Ordinaries index closed up 0.3 percent but the Shanghai Composite index was flat on the day.

Flash PMI surveys for Japan suggest that conditions so far this month have weakened in both the manufacturing sector and the services sector. The headline index for the manufacturing survey fell from 48.9 in September to a flash estimate of 48.5 in October, while the equivalent index for the services survey dropped sharply from 52.8 to 50.3. This resulted in the composite index falling from 51.5 in September to a flash estimate of 49.8 in October. Final estimates rescheduled for publication early next month.

Hong Kong trade data released after the Asia session showed an increase in the trade deficit from HK$28.0 billion in August to HK$31.6 billion in September. Exports dropped 7.3 percent on the year after falling 6.3 percent previously, reflecting another year-on-year decline in exports to mainland China and a bigger drop in exports to the United States. Imports declined 10.3 percent after falling 11.1 percent previously. Officials again cited weaker global growth and ongoing trade tensions between the US and China continue to represent downside risks to what they already expect will be weak performance in the near-term.

Looking forward

On Friday in Europe, French PPI, German Ifo Survey, and German Gfk Consumer climate data are due. In the US, consumer sentiment and US Treasury budget reports are scheduled.

Global stock markets

 

Index

24 Oct 2019

Daily Change

% Change Daily

North America

 

 

 

 

United States

Dow

26805.53

-28.42

-0.1

 

NASDAQ

8185.8

66.01

0.8

 

S&P 500

3010.29

5.77

0.2

Canada

S&P/TSX Comp

16369.32

33.39

0.2

Europe

 

 

 

 

UK

FTSE 100

7328.25

67.51

0.9

France

CAC

5684.33

30.89

0.6

Germany

XETRA DAX

12872.1

73.91

0.6

Italy

MIB

22527.42

176.35

0.8

Spain

Ibex 35

9391.8

6.80

0.1

Sweden

OMX Stockholm 30

1736.98

11.11

0.6

Switzerland

SMI

10106.53

83.01

0.8

Asia/Pacific

 

 

 

 

Australia

All Ordinaries

6796.69

18.47

0.3

Japan

Nikkei 225

22750.6

125.22

0.6

 

Topix

1643.74

5.60

0.3

Hong Kong

Hang Seng

26797.95

231.22

0.9

S. Korea

Kospi

2085.66

5.04

0.2

Singapore

STI

3168.87

24.59

0.8

China

Shanghai Comp

2940.92

-0.70

0.0

Taiwan

TAIEX

11320.14

80.47

0.7

India

Sensex 30

39020.39

-38.44

-0.1

Note: all releases are listed in local time.

Important Information

Econoday Inc. is a US company that provides financial commentary and indicators to industry professionals. All information provided and views expressed are those of Econoday. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Past performance is not a reliable indicator of future results. The value of investments can go down as well as up and investors may not get back the amount invested.