On 03 November, 2015 – European markets were mixed as financials stocks were under pressure

Stocks were mostly higher Tuesday with commodity stocks leading the way. With few new economic indicators available, investors monitored earnings reports carefully.
United States
Trading was indecisive in the morning with markets drifting between slight gains and losses. However, stocks turned higher as investors worked through a raft of corporate news and prepared for important economic data later this week. The Dow Jones industrials were up 0.5%, the S&P gained 0.3% and the Nasdaq added 0.4%.
The volatile energy sector continued its big swings on Tuesday. Exxon Mobil and Chevron advanced on higher oil prices. King Digital Entertainment, the publisher of the Candy Crush Saga video game, jumped after Activision Blizzard announced it would buy the company for $5.9 billion. Activision Blizzard shares retreated. Archer Daniels Midland declined after the ethanol and agricultural products maker posted third quarter earnings that badly missed expectations. Archer Daniels has struggled because of lower interest in corn ethanol as a fuel and a strong dollar, which makes American agricultural products more expensive to export. American International Group, the financial and insurance conglomerate, fell after the company posted a loss in the third quarter, blaming market volatility earlier this year. The company also pushed back on activist investors who want to break up the company. Both Apple and Microsoft advanced. Sprint retreated after the wireless carrier reported lower than expected results.
October total auto sales came in at an annualized rate of 18.2 million units, easily topping estimates of 17.7 million. General Motors, Ford and Chrysler all posted low double-digit annual gains in sales. Even embattled Volkswagen saw a slight uptick in sales in October.
Gold at the afternoon London fixing was down US$10.90 to US$1,123.10. Copper futures were up 0.7% to US$2.33. WTI spot crude was up US$1.72 to US$47.86. Dated Brent spot crude was up US$1.76 to US$50.56. The US dollar was up against the euro, yen and Swiss franc. It was lower against the pound and the Canadian and Australian dollars. The Dollar Index was up 0.4%. The yield on US Treasury 30 year bond was up 5 basis points to 3.00% while the yield on the 10 year note added 3 basis points to 2.21%.
Europe
Stocks were mixed and, with little new economic data, corporate news captured investors’ focus. The FTSE gained 0.3% and the CAC, 0.4%. Both The DAX and SMI were virtually unchanged with the former adding 0.48 point and the latter slipping 0.58 point. Financial stocks were under pressure thanks to news from UBS and Standard Chartered. The emission scandal at Volkswagen worsened after further allegations from the United States. Meanwhile, energy stocks were among the best performing stocks, due to rising crude oil prices.
Volkswagen dropped after the US Environmental Protection Agency (EPA) alleged that the defeat device installed in more than 11 million diesel vehicles around the world has also been found in its larger 3.0 liter diesel engines. However, the company has denied these claims. BMW retreated after the company confirmed its full year sales and profits targets after posting a surprise increase in third quarter operating profit. Utility E.ON gained after buying a stake in American start-up Bidgely. Sanofi slipped after the drug maker signed a collaboration and license agreement with BioNTech to develop up to five cancer immunotherapies. Both Technip and Total advanced. Burberry Group said it will invest more than £50 million in a new manufacturing plant in Leeds, northern England that will employ more than 1,000 people.
In London, Associated British Foods edged upward. The group, which owns discount fashion retailer Primark and British Sugar, reported a drop in pretax profits due to unfavorable movements in exchange rates. Standard Chartered retreated after the lender announced job cuts and unveiled plans to raise £3.3 billion pounds in a rights offering after posting a loss before tax of US$139 million for the third quarter. Homebuilders including Persimmon, Taylor Wimpey and Barratt Developments retreated after a broker downgrade. UBS declined in Zurich. The company reported a significant rise in its third quarter net profit but warned of ongoing underlying macroeconomic challenges and geopolitical issues. Royal Dutch Shell and BG Group advanced after Shell announced plans for further benefits and cost cuts from its planned US$70 billion takeover of BG.
Asia Pacific
Most stocks advanced Tuesday after US shares posted strong gains during the Monday global market day and the Reserve Bank of Australia kept alive the prospects of an interest rate cut in December. Broader gains in commodities also prompted a surge of interest from bargain hunters. Japanese markets were closed for the Culture Day holiday.
The Shanghai Composite slipped 0.3% in thin trading as concerns over the slowing economy kept investors on the sidelines. The Hang Seng however was 0.9% higher on the day as investors waited for finer details of Beijing’s 13th five-year plan, which begins in 2016.
The S&P/ASX added 1.4% and the All Ordinaries 1.3% after the Reserve Bank of Australia left its cash rate unchanged at 2.0%, saying the prospects for an improvement in economic conditions had “firmed a little over in recent months.” The RBA left the door open for a rate cut if growth and inflation fail to pick up.
The Kospi was up 0.6%. The Sensex snapped a six day losing streak on Tuesday as positive global cues and encouraging core sector data helped spur some bargain hunting. However, with investors eagerly awaiting the Bihar election results, stocks pared much of their early gains.
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 posts September merchandise trade balance and retail sales. October services PMIs will be released for India, Japan, the UK and US. Composite PMIs will be posted for the Eurozone, Germany and France. The Eurozone releases its September producer price index. The US and Canada release September international trade data. The US also posts October ADP private employment report and the ISM nonmanufacturing report.
*Note — all releases are listed in local time.