Morgan Stanley tumbles as profit misses analysts' estimates Metals drop as China posts slowest economic growth since 2009 Share on Facebook Share on Twitter U.S. stocks futures declined and European shares pared gains as investors’ focus swung to disappointing Morgan Stanley earnings following a mixed reaction to Chinese growth data. Morgan Stanley tumbled more than 5 percent in early trading after saying net income fell on lower fixed-income trading revenue and a loss in Asian private-equity investments. European stocks were little changed after gaining as much as 0.8 percent on local corporate earnings. German and French bonds declined after a rally last week. While copper and nickel fell after China reported the slowest economic growth since 2009, South Korea’s won and Australia’s dollar gained. Treasuries 10-year note yields hovered above 2 percent after dropping last week on speculation the Federal Reserve will keep interest rates lower for longer. “For the U.S. market, the earnings season and the expectations for a Fed rate hike are the key near-term factors,� said Otto Waser, chief investment officer at R&A Group Research & Asset Management AG in Zurich. “Expectations are still low for earnings and global companies are still suffering from a strong dollar.� Morgan Stanley followed Goldman Sachs Group Inc. and JPMorgan Chase & Co. in missing profit expectations, renewing concerns about earnings at financial companies, which are the biggest component of the S&P 500 Index by weight. China’s cooler growth weighed on commodities and producers, even if the slowdown was less than economists anticipated because of services and robust consumption helping offset weakness in manufacturing and exports. Stocks Standard & Poor’s 500 Index E-mini futures expiring in December fell 0.4 percent as of 8:13 a.m. in New York. The Stoxx Europe 600 Index was up about 0.1 percent. Weight Watchers International Inc. surged about 70 percent after media tycoon Oprah Winfrey agreed to a buy stake in the diet-product company and join its board. Deutsche Bank AG jumped as much as 3.9 percent after Co-Chief Executive Officer John Cryan started the bank’s biggest management shakeup in more than a decade and split its investment bank. Foodmaker Danone gained 1.9 percent after Chinese demand for foreign-made infant formula helped the company beat analysts’ third-quarter sales estimates. Currencies The won strengthened 0.7 percent to 1,121.14 a dollar, data compiled by Bloomberg show. The South Korean currency has gained 5.7 percent this month, the best performance in Asia after Indonesia’s rupiah. Data on Friday will probably show that the nation’s economic growth quickened last quarter, according to economists surveyed by Bloomberg. Australia’s dollar rose to 72.77 U.S. cents, erasing a drop of as much as 0.3 percent to 72.39 cents. The euro dropped 0.1 percent to $1.1333 before European Central Bank policy makers meet this week in Malta. The dollar was also little changed at 119.37 yen. Bonds German government bonds declined along with French peers. Yields on 10-year bunds increased one basis points to 0.56 percent, after a slide of seven basis points last week, while yields on 10-year French government bonds rose one basis points to 0.93 percent. The yield on U.S. 10-year Treasuries was little changed at 2.04 percent, after falling five basis points last week. Emerging Markets The MSCI Emerging Markets Index was little changed. The Borsa Istanbul 100 Index rose 1.5 percent, heading for the highest close in more than two months. German Chancellor Angela Merkel said she would support Turkish demands for progress in stalled EU membership talks and for 3 billion euros in aid. Merkel is seeking Turkey’s cooperation in resolving a refugee crisis. Commodities Gold dropped 0.4 percent to $1,173.05 an ounce, declining for a third day, after a private report on Friday showed a bigger-than-expected increase in consumer sentiment. That revived expectations that the Federal Reserve may raise interest rates. Silver fell 0.9 percent. Copper was 1.7 percent lower in London at $5,195.50 a metric ton. Nickel fell 1.5 percent and zinc lost 1.3 percent. West Texas Intermediate crude fell 1.8 percent to $46.41 a barrel, while Brent dropped 2 percent to $49.40.

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