Stock Market News (US Open) – European stocks head higher ahead of crucial meeting in Spain; US indices renew highs on tax optimism
October 20, 2017 2:28 pm
At 1355 GMT, a few minutes after US stock markets opened for the trading day, most major European benchmarks were looking set to finish this week’s last trading day on a positive note. The pan-European Stoxx 600 was higher by 0.25% on the day, though it was lower by 0.3% on a weekly basis after advancing for five straight weeks.
The FTSE 100 and CAC 40 were higher by 0.2% and 0.1% respectively with the DAX being flat. The Spanish IBEX 35 recovered from morning losses to last trade up by 0.3%. Spanish equities have been under pressure over ongoing tensions relating to Catalonia’s bid for independence. PM Mariano Rajoy will meet with his cabinet tomorrow with the triggering of Article 155 to suspend Catalonia’s autonomy being a possibility.
Financials and basic materials were the best performing industry sectors within the Stoxx 600. The former was supported by growing optimism over tax reforms taking place in the US after the Senate yesterday voted in favor of a budget blueprint for fiscal year 2018. The latter was boosted by rising copper prices which in turn pushed mining stocks higher.
Ericsson (up 8.0%), the Swedish-based telecommunications equipment maker, led gains within the Stoxx 600 after Q3 results came in a “tiny bit better than feared” according to investment bank Morgan Stanley. The company’s CEO also made some comments pertaining to the company’s savings program, saying that he thinks it’s enough to reach the margin target after 2018. The firm’s stock price gained following the comments.
Swedish-based Volvo (up 7.0%) was the second best performing stock within the Stoxx 600, with its stock price reaching an all-time high during the day. The truck maker reported a stronger-than-anticipated increase in Q3 core earnings while raising its truck sales outlook for the year. Rivals in the truck industry Volkswagen and Daimler were last trading lower by 0.9% and 1.1% respectively (both of them are DAX component stocks).
Both Ericsson and Volvo are constituents of OMXS 30, the Swedish blue-chip index. The benchmark was last up by 1.3%, the most among major blue-chip benchmarks in Europe.
Husqvarna (down 3.5%), the Swedish manufacturer of outdoor power products, performed the worst among Stoxx 600 stocks after its Q3 operating profits surprised to the downside.
With the US seemingly getting closer to the delivery of tax cuts, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite last traded higher by 0.3%, 0.3% and 0.4% respectively, with the former two recording all-time highs and the latter coming within breathing distance of achieving the same feat.
General Electric (down 3.5%) and Procter & Gamble (down 3.1%) reported quarterly results before today’s opening bell which came in below analysts’ estimates. GE also cut its full-year profit forecast.
At 1355 GMT, a few minutes after US stock markets opened for the trading day, most major European benchmarks were looking set to finish this week’s last trading day on a positive note. The pan-European Stoxx 600 was higher by 0.25% on the day, though it was lower by 0.3% on a weekly basis after advancing for five straight weeks.
The FTSE 100 and CAC 40 were higher by 0.2% and 0.1% respectively with the DAX being flat. The Spanish IBEX 35 recovered from morning losses to last trade up by 0.3%. Spanish equities have been under pressure over ongoing tensions relating to Catalonia’s bid for independence. PM Mariano Rajoy will meet with his cabinet tomorrow with the triggering of Article 155 to suspend Catalonia’s autonomy being a possibility.
Financials and basic materials were the best performing industry sectors within the Stoxx 600. The former was supported by growing optimism over tax reforms taking place in the US after the Senate yesterday voted in favor of a budget blueprint for fiscal year 2018. The latter was boosted by rising copper prices which in turn pushed mining stocks higher.
Ericsson (up 8.0%), the Swedish-based telecommunications equipment maker, led gains within the Stoxx 600 after Q3 results came in a “tiny bit better than feared” according to investment bank Morgan Stanley. The company’s CEO also made some comments pertaining to the company’s savings program, saying that he thinks it’s enough to reach the margin target after 2018. The firm’s stock price gained following the comments.
Swedish-based Volvo (up 7.0%) was the second best performing stock within the Stoxx 600, with its stock price reaching an all-time high during the day. The truck maker reported a stronger-than-anticipated increase in Q3 core earnings while raising its truck sales outlook for the year. Rivals in the truck industry Volkswagen and Daimler were last trading lower by 0.9% and 1.1% respectively (both of them are DAX component stocks).
Both Ericsson and Volvo are constituents of OMXS 30, the Swedish blue-chip index. The benchmark was last up by 1.3%, the most among major blue-chip benchmarks in Europe.
Husqvarna (down 3.5%), the Swedish manufacturer of outdoor power products, performed the worst among Stoxx 600 stocks after its Q3 operating profits surprised to the downside.
With the US seemingly getting closer to the delivery of tax cuts, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite last traded higher by 0.3%, 0.3% and 0.4% respectively, with the former two recording all-time highs and the latter coming within breathing distance of achieving the same feat.
General Electric (down 3.5%) and Procter & Gamble (down 3.1%) reported quarterly results before today’s opening bell which came in below analysts’ estimates. GE also cut its full-year profit forecast.
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