On 19 November, 2015 – Most European markets rose on central bank announcements

Stocks in Asia and Europe followed Wednesday’s US share rally upward. However, US stocks paused for breath and were barely changed on the day.
United States
US stock indexes drifted between small gains and losses in afternoon trading Thursday as traders weighed a mix of company earnings news. The Dow Jones and Nasdaq were virtually unchanged as they drifted 4.41 points and 1.56 points lower for the day. The S&P slipped 0.1%. US stocks rallied Wednesday after minutes from the Federal Reserve’s latest meeting showed that the Fed was likely on track to raise interest rates in December. The positive reaction in stock markets to the Fed minutes contrasts with the selloff that had initially followed the Fed’s decision to keep rates on hold in September as investor focus shifts to the pace of interest-rate increases.
In absence of major economic news, investors were balancing some disappointing company earnings and outlooks with more favorable results by others. Health care stocks were among the biggest decliners. The payments company Square soared in its market debut. UnitedHealth declined after it cut its 2015 earnings forecast. The company said it would pull back on the marketing of its exchange business a few weeks after open enrollment for that coverage began nationwide. It also said it would decide in the first half of next year to what extent it could continue to serve the public health insurance exchange markets in 2017. Shares of Tenet Healthcare, Aetna, Anthem and Cigna also slumped.
JM Smucker shares jumped after the company’s latest quarterly earnings beat expectations. Keurig Green Mountain and Salesforce.com rose after they reported better than expected earnings and revenue. Energy companies were pulled lower as US crude oil futures slipped. Chevron and Exxon Mobil retreated. Intel rallied after it raised its dividend, forecasting growth for 2016. Best Buy retreated after the electronics retailer reported a sales slowdown at existing stores and warned about a drop in fourth quarter revenue, adding to investor jitters about the coming holiday shopping season.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing rebound US$14.85 to US$1,082.60. Copper futures were down 0.2% to US$2.08. WTI spot crude was down 32 US cents to US$40.43. Dated Brent spot crude was slipped 3 US cents to US$44.11. The US dollar was up against all of its major counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.8%. The yield on US Treasury 30 year bond was down 4 basis points to 3.00% while the yield on the 10 year note slipped 3 basis points to 2.24%.
Europe
Most stock indices ended Thursday’s session in positive territory. The markets climbed in early trade in reaction to the minutes from the most recent Federal Reserve meeting, which were released after the European markets closed on Wednesday. The Fed minutes signaled that is likely to raise interest rates next month. Meanwhile, the ECB minutes released today suggest that further stimulus measures are likely. The FTSE was up 0.8%, the DAX added 1.1% and both the CAC and SMI were 0.2% higher.
According to the minutes published from the European Central Bank’s governing council meeting on October 22, it considered boosting its monetary stimulus after it was suggested that the deflation risk remained relevant despite the ongoing slow recovery in the euro area. According to the minutes, “The view was put forward that a case could be made for considering reinforcing the ECB’s accommodative monetary policy stance already at the current meeting and, in any case, to act sooner rather than later.” The minutes also reiterated that the governing council was set to review the stimulus measures at the December 3 policy meeting. The bank is widely expected to raise the size of its monthly asset purchases to €80 billion from €60 billion and also extend the €1.1 trillion program beyond its September 2016 deadline.
ThyssenKrupp gained after its full year report. Both E.ON and RWE advanced as did Lufthansa and Volkswagen. In Paris, Sodexo surged after the company said its group profit for fiscal 2015 increased 43% to €700 million. The company’s board has also decided to implement a €300 million share repurchase and cancellation program in fiscal 2016. In London, specialty chemicals company Johnson Matthey jumped after the company reported increased first-half profit and announced a special dividend. Royal Mail, which announced first-half results, advanced.
UK October retail sales were down 0.6% on the month after increasing 1.7% in September as food sales declined the most in 17 months.
Asia Pacific
Stocks across Asia advanced Thursday after various Federal Reserve officials signaled confidence in the economy and the October FOMC minutes implied that the Fed would increase its fed funds rate at its mid-December meeting. Stocks here followed US stocks higher. Investors across Asia downplayed fears of capital flight from emerging markets after the Fed minutes reinforced speculation that the upward move in rates will be exceptionally shallow and gradual. Recent concerns surrounding the Paris terrorist attacks were put on the back burner.
The Shanghai Composite was up 1.4%. Technology stocks paced the gainers after the Xinhua News Agency said the government will support targeted industries to upgrade their technology. The Hang Seng added 1.4% as well, lifted by strong gains in Tencent and Glencore Holdings.
The Nikkei was up 1.1%, hitting a three month high even as the yen strengthened and merchandise trade data pointed to continued weakness in the economy. The dollar eased from a three month high against the yen after the Bank of Japan maintained its current pace of monetary stimulus in a widely expected decision. While Japan’s exports fell 2.1% in October to post the first annual drop in more than a year, imports declined 13.4%. This led to the first trade surplus of ¥111.5 billion. Mitsubishi Electric gained on a Nikkei report it aims to boost North American sales by roughly ¥100 billion by fiscal 2020. Softbank Corp and aviation group ANA Holdings retreated. The Bank of Japan kept its monetary policy unchanged. Interest rates remain in a range of zero to 0.1%. It said it would continue to buy JGBs at an annual pace of ¥80 trillion.
The S&P/ASX was up 2.1% while the All Ordinaries added 2.0% boosted by gains in banks and miners. BHP Billiton and Rio Tinto climbed along with Newcrest and Evolution as a dip in the dollar gave commodities a reprieve from recent selling. Woodside Petroleum advanced while Santos retreated. The big four banks were higher on the day. The Kospi gained 1.3% while the Sensex was 1.4% higher.
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*
Germany posts October producer prices. Canada releases October consumer prices and September retail sales.
*Note — all releases are listed in local time.