On 10 October, 2017 - Investors waited for an independence decision from Catalonia

They were also waiting for third quarter earnings reports.

United States

Stocks rallied Tuesday with the Dow Jones industrials hitting another record closing high. The Dow was up 0.3 percent, the S&P added 0.2 percent and the Nasdaq edged 0.1 percent higher. The indices were helped by a rally in Wal-Mart Stores. However, Amazon and Facebook retreated as investors focused on upcoming quarterly reports.

Wal-Mart jumped to a two-year high after forecasting US online sales would rise by about 40 percent in the next fiscal year and unveiling a $20 billion share buyback plan. Costco and Hormel Foods also advanced. However, P&G dropped after activist investor Nelson Peltz unexpectedly failed in his bid to win a board seat. Nvidia rose after unveiling chips for autonomous vehicles. American Airlines and United Continental jumped after the two airlines gave encouraging third-quarter forecasts. Delta, which is to report on Wednesday, also advanced. Energy stocks got a boost from rising oil prices supported by Saudi Arabian export cuts in November and comments from OPEC and trading companies that the market is rebalancing after years of oversupply.

Catalonia stepped back from immediate independence. Catalan leader Carles Puigdemont proclaimed the region’s independence from Spain. But he stopped short of seeking the explicit support of the regional parliament in Barcelona for the declaration of independence in a vote. He immediately suspended the declaration to allow for “dialogue” with the central government in Madrid. The Spanish government has so far rejected calls to talk with the separatists. The Spanish constitution says that independence is illegal because Spain is ‘indivisible’.

These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$12.65 to US$1,291.40. Copper futures were up 1.0 percent to US$3.06. WTI spot crude was up US$1.35 to US$50.93. Dated Brent spot crude was up 78 US cents to US$56.57. The US dollar was down against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.5 percent. The yields on both the US Treasury 30 year bond and 10 year note were down 1 basis point to 2.88 and 2.35 percent respectively.

European markets

Most indices declined Tuesday as they waited for further news regarding Catalan independence from Spain. The euro advanced against the US dollar on speculation that the European Central Bank may begin scaling back its asset purchase program when it meets October 26. The FTSE and SMI were up 0.4 percent and 0.1 percent respectively. The CAC was down 2.18 points and the DAX slipped 0.2 percent.

K+S advanced after the company said it plans to merge its salt and potash businesses in a company-wide strategic overhaul. Dassault Aviation was lower on news that its Falcon 5X is facing new delays. LVMH was up after the luxury goods firm reported a 14 percent increase in revenues for the first nine months of 2017. Richemont and Swatch advanced in Zurich. In London, Capita jumped after the firm named former Amec boss Jonathan Lewis as its chief executive officer from December 1.

Vedanta Resources declined after releasing its second-quarter and half-year production results. BAE Systems decreased after it announced over 1900 job cuts. Givaudan rallied in Zurich after reaffirming its 2020 targets. CaixaBank and Banco Santander declined in Madrid ahead of the key speech by Catalonia's leader Carles Puigdemont. Novartis and Roche were lower along with Nestlé. Christian Dior and Gucci owner Kering advanced.

Germany's exports increased a calendar-and-seasonally adjusted 3.1 percent from July when they rose 0.2 percent. Imports also increased for a second month running, up 1.2 percent after 2.4 percent increase in July. The trade surplus widened to €21.6 billion from €19.3 billion. France's industrial production declined in August, after rebounding in the previous month. Industrial production dropped a monthly 0.3 percent in August, reversing a 0.8 percent rise in July. British industrial production climbed 0.2 percent in August. It was the fifth successive monthly rise in output. The UK visible trade deficit widened to £14.24 billion in August from £12.82 billion in July.

Asia Pacific

Asian stocks were mostly higher Tuesday as investors assessed political developments in Washington and waited for the US earnings season to begin. They were also looking to read the minutes from the most recent Federal Reserve meeting. Investors were also monitoring developments in Catalonia as its President prepared to address the region's parliament on independence.

The Shanghai Composite erased early losses and ended the day 0.3 percent higher after reports that the government is making efforts to restrain market swings before a key leadership meeting later this month. The Hang Seng was up 0.6 percent.

The Nikkei and Topix were up 0.6 percent and 0.5 percent respectively after the yen weakened over the weekend and Japan's current account surplus figures for August exceeded expectations. Canon, Panasonic, Toyota Motor and Tokyo Electron climbed. Insurance stocks declined with Tokio Marine, MS&AD Holdings and Sompo Holdings all closing lower. Kobe Steel plunged after the company admitted it had fabricated data for aluminium and copper products shipped to some 200 clients.

Australian shares barely moved. The S&P/ASX was down 1.15 points while the All Ordinaries edged up 1.94 points. Miners reversed early losses to end mixed amid signs of weakening demand in China. Banks also ended mixed, with ANZ and Westpac rising while Commonwealth and NAB declined.

The Kospi jumped 1.6 percent to hit 11-week highs as trading resumed after a six-day holiday break. The Sensex was up 0.2 percent.

Looking Forward

Japan releases August machine orders. In the US, JOLTS data for August will be posted. The Federal Reserve publishes minutes of the FOMC meeting held on September 19 and 20.

Global Stock Markets

Global Stock Markets

*Note — all releases are listed in local time.










Source: Fidelity

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