8:30AM New York, 1:30PM London – European market rebound on the strength in New York and Asia.
European markets resurged on a bounce back in averages in New York and firm markets in Asia. Averages across the region at mid-day traded near 1.75% gain. U.K. led the region with a gain of 2.2% followed by 2% rise in Germany, and 1.9% increase in France, Norway, and Switzerland. Spain, Italy, and Spain advanced 1.7%. Top eleven markets in the region are trading higher.
In
London trading, Takeover speculation and earnings reports lifted the averages. Alliance & Leicester jumped 2% after market analysts speculated that the National Australia Bank is likely to bid for the UK bank. Earnings news from Lloyds TSB lifted the stock 3%. The company reported earnings of 1.54 billion pounds in earnings from 1.24 billion pounds a year ago. GlaxoSmithKline jumped 3% after the U.S. FDA panel recommended its drug pill Avandia. Mining stocks got a lift on the rising copper and nickel prices in London trading. Copper prices gained on a news report that mine workers at Southern Copper Peru in Mexico have struck for higher wages.
In
Frankfurt trading, stocks surged after the government reported that unemployment in July fell to 3.77 million. The marginal decline of 45,000, on a normalize basis, higher then estimated by economists. A week ago a private association of banks estimated second quarter economic growth of 0.5% matching the growth if the first quarter. MAN jumped 5% after reporting second quarter earnings increase of two-fold on sales gain in Eastern European nations. Commerzbank jumped 4%, Deutsche Bank increased 1% and Allianz edged 0.9% higher. Deutsche Boerse jumped 1.5% ahead of earnings before the market close.
8:00AM General Motors swung to profit in Q2, beating estimates.
General Motors (
GM: chart) announced Tuesday it swung to a Q2 net income profit. The automotive giant posted Q2 increase to $891 million, or $1.56 per share, reversing from a loss of $3.4 billion, or $5.98 a share a year ago. However, company’s sales fell to $46.8 billion vs. a restated $53.9 billion last year. Quarterly results exceeded analyst expectations of earnings of $1.13 a share and revenue of $44.45 billion.
Adjusted net income advanced to $2.4 billion, or $2.48 a share, compared to $1.1 billion, or $2.03 a share last year. Global market share slightly declined to 13.3%, compared to 13.7% in the year-ago period, driven by a softer U.S. market and a reduction in fleet sales. The stock jumped 7.2% in pre-market trading.
7:00AM New York, 8:00PM Tokyo – Earnings results drive market sentiment in Tokyo trading.
Nikkei 225 dropped 0.23% or 40.41 to close at 17,249.89 finishing the moth with a loss of 5%. A day after election market switched its focus to local earnings and regional trends. The positive close in New York helped averages in the morning hours.
June unemployment fell to 3.7% from 3.8% in May and total monthly wages fell 1.1% from a year ago. The report also showed that available jobs to the number of applicants ratio increased to 1.07 from 1.06 in May. In a separate report, the government also reported that the overall household spending in the month gained 0.1%, lower than expected rise of 0.7%. Last week, the government reported that June retail sales fell 0.4% and supermarket sales keep declining for 18 consecutive months.
Gainers
Nikon surged 5.5% ahead of earnings report. The company reported after the close first quarter earnings rise of 59% and net revenue gain of 29.4%. The company reported net revenue of 223.54 billion yen and earnings of 2.34 billion yen. For the year company guided revenue gain of 13% and 15.3% in the first half of the year. The earnings are expected to rise 33.7% and 13.1% in the similar periods.
Earnings News
Shinsei Bank reported earnings rise of 63% to 31.2 billion yen.
Olympus jumped 6% to 4,910 yen after reporting earnings 17.6 billion from 7.12 billion yen from a year ago. The company reported net sales increase of 17.2% to 264 billion yen from 225.4 billion yen from a year ago. The earnings gained 147.4% to 17.6 billion yen from 7.12 billion yen fro a year ago.
Mitsubishi Corp gained 5% to 3,540 after it reported first quarter earnings. The company net revenue increased to 5.46 trillion of yen from 4.877 trillion yen and earnings declined to 115 billion yen from124 billion yen. The revenue jumped 12% and gross profit increased 1.8% but net profit declined 8% on lower sales price in Australian coking coal business.
Decliners 
