On 19 October, 2015 – European markets were mixed on weak energy and resource stocks

Stocks were mixed globally. Investors weighed disappointing data from China while at the same time waited for a deluge of earnings reports.
United States
United States markets wavered between small gains and losses in afternoon trading on Monday as investors considered company earnings news and a slowdown in China’s growth. Energy stocks were among the biggest decliners as the price of oil fell. The Dow Jones industrials edged up 0.1% while the Nasdaq added 0.4%. The S&P was virtually unchanged.
Lower commodity prices helped pull down shares in oil companies and materials makers. Exxon Mobil and Chevron declined along with Freeport-McMoRan. Hasbro was down after the toy maker reported that sales of girls’ toys and games dropped 28% in the third quarter. Morgan Stanley stock slid after it reported a sharp drop in quarterly earnings as the bank’s bond trading business weakened. Weight Watchers stock surged on news that Oprah Winfrey is paying about US$43.2 million for a 10% stake in the weight management company and joining its board. Ms. Winfrey also agreed to endorse the company’s programs and services and to help promote the company. PMC-Sierra stock climbed on news that Microsemi had offered to buy the semiconductor company for about US$2.4 billion, topping a bid from Skyworks Solutions. Diebold jumped after the ATM maker offered to buy Wincor Nixdorf of Germany in a deal worth more than €1.7 billion. If it lands Wincor, Diebold could become the largest maker of ATMs in the world, displacing NCR.
China’s economic growth decelerated in the latest quarter, but relatively robust spending by Chinese consumers helped to avert a deeper downturn. China’s economy grew by 6.9% in the three months ended in September, down from the previous quarter’s 7% and the slowest since early 2009, after the global crisis.
Morgan Stanley said its third quarter profit declined to US$1.02 billion or 48 US cents per share. That compares with the US$1.69 billion or 83 US cents per share it reported in the same period of 2014. Revenue fell to US$7.77 billion from US$8.91 billion. International Business Machines’ revenue declined for the 14th straight quarter, hurt by a strong dollar and as the company sold certain low-margin businesses. IBM’s net income from continuing operations declined to US$2.96 billion or US$3.02 per share in the third quarter ended September 30, from US$3.46 billion or US$3.46 per share a year earlier. Revenue fell 13.9% to US$19.28 billion. Revenue adjusted for currency and divestitures fell 1%.
Gold at the afternoon London fixing was down US$5.45 to US$1,175.40. Copper futures were down 1.7% to US$2.36. WTI spot crude was down US$1.20 to US$46.06. Dated Brent spot crude was down US$1.78 to US$48.68. The US dollar was up against the euro, Swiss franc and the Canadian and Australian dollars. It was virtually unchanged against the yen. However, it declined against the pound. The Dollar Index was up 0.4%. The yield on US Treasury 30 year bond was up 1 basis point to 2.89% while the yield on the 10 year note was unchanged at 2.03%.
Europe
Shares were mixed Monday. Disappointing Chinese GDP data raised concerns over demand for metal and energy products. European energy and resource stocks were among the weakest performers. The DAX added 0.6% while the CAC was virtually unchanged. The FTSE and SMI lost 0.4% and 0.1% respectively.
Deutsche Bank gained after announcing a management shakeup. Commerzbank also advanced. Metro climbed after the department stores operator reported growth in like-for-like sales for the fourth quarter. Wincor Nixdorf surged after US-based peer Diebold announced combination talks with the German rival. RWE and E.ON weakened. Danone was up after announcing increased quarterly organic sales. Eurofins Scientific, which announced new mid-term objectives, rallied.
Both Technip and Total declined. In London, mining stocks were under pressure on China concerns. Anglo American, Glencore, Fresnillo, Antofagasta and BHP Billiton retreated. Royal Dutch Shell, BP and Tullow Oil declined. Tribal Group plunged after the provider of student management systems and services for education management said it now expects revenues for the current year to be lower than the prior year and sees operating profits significantly below its previous expectations.
Asia Pacific
Shares were mixed Monday as prices of most commodities fell in the wake of somewhat mixed economic indicators out of China.
The Shanghai Composite slipped 0.1% while the Hang Seng was virtually unchanged. China’s economy grew at its slowest pace since the global financial crisis in the third quarter, denting hopes of a quick recovery and leaving scope for policymakers to expand fiscal and monetary measures to avert a sharper slowdown. GDP expanded by 6.9% on the year, beating forecasts for 6.8% growth after expanding 7% in the second quarter. September industrial production was up only 5.7% from a year ago, missing forecasts of 5.9%.
The Nikkei dropped 0.9% in thin trading as the yen strengthened and investors locked in some recent gains. Among the companies that declined were Canon, Panasonic, Honda Motor, Sharp, Mazda Motor, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial Group. Tokyo Electric Power rallied on a Nikkei report that the utility will resume bond offerings in September 2016. Nintendo advanced after it was reported that the company has started releasing software development kits for its new videogame platform code-named NX. Bank of Japan Governor Haruhiko Kuroda today maintained his optimism on growth and inflation prospects but said the BoJ would make necessary policy adjustments if needed to ward off downside risk.
Both the All Ordinaries and S&P/ASX were virtually unchanged. Westpac rallied as trading resumed after raising A$3.5 billion in capital. Miners lost ground as China’s growth statistics pointed to continued deceleration in economic activity. The Kospi also ended virtually unchanged. The Sensex added 0.6%.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. 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.
Looking forward*
Australia publishes minutes of its monetary policy meeting held earlier this month. Germany posts September producer prices. September housing starts will be reported in the US.
*Note — all releases are listed in local time.