On 22 December, 2015 – Stocks were mixed in light pre-holiday trading

Shares continued to respond to gyrations in energy prices.

United States

Stocks advanced Tuesday, helped by stabilization in oil prices, which helped broadly lift energy stocks. The Dow Jones industrials were up 1.0 percent, the S&P climbed 0.9 percent and the Nasdaq added 0.65 percent.

Markets were searching for direction as the flow of economic data eases off until after the new year. Investors have already had plenty of time to digest this month’s major decisions by the United States Federal Reserve to raise rates and by the European Central Bank to increase its stimulus efforts. At this point, many fund managers and traders have closed their books for 2015. The holiday-shortened weeks of Christmas and New Year’s also are contributing to lower trading volumes.

Existing home sales tumbled in November thanks in large part to a change in closing rules that postponed sales into December. The final estimate of third quarter gross domestic product indicated that the economy grew at an annualized pace of 2.0 percent, down from the previous estimate of 2.1 percent.

Chipotle Mexican Grill dropped after the fast-food chain disclosed additional cases of E. coli at its restaurants. Caterpillar and Wal-Mart rallied.

These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$3.85 to US$1,074.90. Copper futures were down 1.4 percent to US$2.11. WTI spot crude was up 33 US cents to US$36.14. Dated Brent spot crude was down 14 US cents to US$36.21. The US dollar was up against the pound. However, it declined against the yen, euro, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.3 percent. The yield on US Treasury 30 year bond was up 4 basis points to 2.95 percent while the yield on the 10 year note added 4 basis points to 2.23 percent.

Europe

Stock markets were mixed Tuesday in light trading with many investors already celebrating the holidays. Energy and resource stocks were among the best performing stocks. The FTSE added 0.8 percent and the CAC edged up 0.1 percent. The DAX retreated 0.1 percent while the SMI was 0.3 percent lower.

Positive sentiment was driven by an unexpected increase in German consumer confidence and optimism about the possibility of further Chinese stimulus following statements from government officials. At the end of the Chinese government's Central Economic Work Conference, officials said monetary policy must be more "flexible" and fiscal policy more "forceful" to halt the country's economic slowdown.

Volkswagen, Daimler and BMW finished higher. In Paris, Carrefour was down after the company announced an agreement to acquire Billa Romania from the Rewe Group. Kering and LVMH advanced. Technip and Total gained. In London, Marks & Spencer and Next declined after a broker downgrade on both. Mining stocks were among the best performing stocks on hopes for further Chinese stimulus measures. Anglo American, Antofagasta, Fresnillo, Glencore and Rio Tinto advanced. Royal Dutch Shell, BP gained and BG Group were higher.

Asia Pacific

Most Asian stocks were up Tuesday — prospects of more stimulus in China underpinned investor sentiment. Oil prices regained some ground in Asia but traders feared oversupply will continue to undercut prices for months to come.

The Shanghai Composite was up 0.3 percent after Chinese leaders flagged more stimulus at the government's Central Economic Work Conference. The Hang Seng added 0.2 percent. China needs a more "flexible" monetary policy and a more "forceful" policy to boost economic growth, Xinhua news agency reported. Monetary policy should be more flexible in order to create appropriate conditions for structural reforms and defuse financial risks in 2016.

The Nikkei was down 0.2 percent in directionless trade ahead of a national holiday on Wednesday. Toshiba plummeted after saying it has reached an agreement with China-based Skyworth on the sale of PT Toshiba Consumer Products Indonesia, the company's manufacturing base for TVs and twin-tub washing machines. McDonald's Holdings Japan slumped on a Nikkei report that McDonald's may sale a stake in its troubled Japanese unit for about ¥100 billion. Panasonic retreated after the electronics maker agreed to buy a majority stake in US refrigeration systems maker Hussmann for $1.54 billion. Japan Airlines and ANA Holdings gained. Taisei advanced after Japan selected a design submitted by a consortium led by the company for the main stadium of the 2020 Tokyo Olympic and Paralympic Games.

The S&P/ASX edged up 0.1 percent while the All Ordinaries added 0.2 percent. While energy stocks rebounded, banks and miners ended mostly lower. The Kospi was up 0.6 percent after China’s statements. However, the Sensex retreated 0.6 percent.

Looking forward

Final third quarter GDP will be released for France along with November consumption of manufactured goods. The UK also posts its final estimate of third quarter GDP. In the US, November durable goods orders, new home sales and personal income and spending will be reported. December consumer sentiment will also be posted.

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.