US shares were mixed in lackluster trading. 

United States

Stocks were mixed Friday after failing to sustain an initial upward move. The Dow Jones industrial and S&P were down 0.3 percent and 0.2 percent respectively while the Nasdaq ended 0.2 percent higher. Despite Friday’s mixed performance, the indices were higher for the second straight week. The Nasdaq surged 1.9 percent while the Dow and the S&P were 1.5 percent and 1.6 percent higher respectively.

Trading was choppy as investors reacted to the release of a batch of largely upbeat US economic data. While the reports eased concerns about the possibility of a recession, at the same time, the data also led to renewed worries about the outlook for interest rates. January personal income and spending each were up 0.5 percent on the month, exceeding expectations. The second estimate of fourth quarter GDP was revised upward to an annualized pace of 1.0 percent from the initial estimate of 0.7 percent. The University of Michigan’s final consumer sentiment report for February improved from its mid-month reading.

Republic Airways plunged after filing for Chapter 11 bankruptcy protection. Energy shares clung to gains even after a rally in crude oil prices faded. JC Penney jumped after the department store operator reported better than expected revenue. Baidu advanced after the Chinese internet search firm posted quarterly results that impressed investors. Raw materials producers rallied on easing growth concerns with Freeport-McMoRan rising as copper surged. Brown-Forman retreated along with PepsiCo and Wal-Mart Stores. Mosaic and CF Industries Holdings gained. Kraft Heinz advanced after its quarterly earnings topped estimates helped by growth of condiment sales. Weight Watchers International tumbled the most in a year. A high-profile partnership with Oprah Winfrey failed to reverse the company’s financial decline as it posted a surprise fourth quarter loss.

These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$9.50 to US$1,226.50. Copper futures were down 0.2 percent to US$2.12. WTI spot crude was down 29 US cents to US$32.78. Dated Brent spot crude was down 54 US cents to US$35.10. The US dollar was up against the yen, euro, pound, Swiss franc and the Australian dollar. However, it declined against the Canadian dollar.  The Dollar Index was up 0.7 percent. The yields on both the US Treasury 30 year bond and the 10 year note were up 6 basis points to 2.64 percent and 1.76 percent respectively.

Europe

European markets advance Friday, extending gains from the previous session. The FTSE added 1.4 percent, the CAC increased 1.6 percent, the DAX advanced 1.9 percent and the SMI was 1.1 percent higher. On the week, the FTSE was 2.4 percent higher while the DAX and CAC added 1.3 percent and 2.2 percent respectively. The SMI edged up 0.2 percent. Financial stocks extended their gains Friday while energy and resource stocks also turned in a solid performance. Economic data was also in focus, with European economic sentiment falling and German inflation data remaining unchanged.

BASF gained after the chemical company lifted its dividend despite warning of a decline in operating income this year. SGL Carbon dropped after the company forecast a wider net loss for 2015 on impairment charges. Deutsche Bank and Commerzbank increased. Both ThyssenKrupp and Salzgitter were higher. Automakers including Volkswagen, Daimler, BMW, Renault and Peugeot advanced. In Paris, Technip and Total increased. In London, BHP Billiton climbed after the mining giant announced that it has made significant progress in negotiations with the Brazilian Government in relation to the Samarco dam failure in Brazil. Glencore, Anglo American and Rio Tinto also finished higher.

Pearson jumped after reporting a surge in its full year profit, reflecting gains from the sale of trophy publishing assets. Burberry surged on a broker upgrade. Royal Bank of Scotland Group dropped after the lender reported its eighth consecutive annual loss, hit by restructuring and litigation costs. Standard Chartered, HSBC, Barclays and Lloyds Banking Group climbed. Telefonica was down in Madrid. The telecoms group reported a 17 percent fall in annual core profit, hit by restructuring costs.

Eurozone economic sentiment dropped to an eight month low in February as weak global environment and financial market concerns weighed on optimism across almost all sectors. The economic sentiment index reading was 103.8, down from a revised 105.1 in January. This was the lowest reading since June 2015. The French economy expanded more than initially estimated in the fourth quarter. Gross domestic product grew 0.3 percent on the quarter, up from the initial estimate of 0.2 percent. The economy had expanded by 0.3 percent in the third quarter as well.

Asia Pacific

Asian shares mostly advanced thanks to a firm finish in the US overnight, oil's gains, a weakening yen and soothing comments by Chinese authorities over the state of the economy and chances of more stimulus helped prop up investor confidence. Investors were looking for reassurance from Group of 20 world leaders that they would stand ready to act if economic conditions worsened. Gains remained capped in Australia, Japan, South Korea and Taiwan as crude prices dipped slightly in Asian deals after closing higher overnight amid reports that OPEC and non-OPEC oil ministers will meet next month to rein in ballooning global oversupply.

The Shanghai Composite index rebounded 0.9 percent after plummeting 6.4 percent Thursday on fears of tighter liquidity and the cooling economy. Sentiment received a boost after People’s Bank of China governor Zhou Xiaochuan said the country has more room to cushion the economy and that there is no reason for yuan to fall persistently. The Hang Seng jumped 2.5 percent as strong buying emerged late in the session. On the week the Shanghai Composite retreated 3.2 percent while the Hang Seng added 0.4 percent.

The Nikkei was up 0.3 percent to close at a three week high as the yen retreated and tepid consumer price inflation data added pressure on the Bank of Japan to expand its already massive monetary stimulus program. For the week, the index added 1.4 percent. Fast Retailing, Honda Motor and Panasonic advanced. Sharp tumbled on reports that Taiwan's Foxconn wasn't ready to sign the deal to take over the troubled electronics firm.

Both the S&P/ASX and All Ordinaries ended the day virtually unchanged as losses among miners offset positive vibrations from US and European markets. The S&P/ASX was down 1.5 percent on the week while the All Ordinaries was 1.3 percent lower. The Kospi edged up 0.1 percent on the day and was 0.2 percent higher on the week. The Sensex added 0.8 percent Friday but was 2.3 percent lower for the week.

Global Stock Markets

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*

 

Central Bank activities

 

 

March 1

Australia

Reserve Bank of Australia Monetary Policy Announcement

March 2

United States

Federal Reserve Beige Book Published

 

 

 

 

 

The following indicators will be released this week…

 

Europe

 

 

 

 

February 29

Eurozone

Harmonized Index of Consumer Prices (February flash)

 

Germany

Retail Sales (January)

March 1

Eurozone

PMI Manufacturing (February)

 

 

Unemployment (January)

 

Germany

PMI Manufacturing (February)

 

 

Unemployment (February)

 

France

PMI Manufacturing (February)

 

UK

PMI Manufacturing (February)

March 2

Eurozone

Producer Price Index (January)

March 3

Eurozone

PMI Services & Composite (February)

 

 

Retail Sales (January)

 

Germany

PMI Services & Composite (February)

 

France

PMI Services & Composite (February)

 

 

ILO Unemployment (Q4.2015)

 

UK

PMI Services (February)

March 4

Italy

Gross Domestic Product (Q4.2015 final)

 

 

 

Asia/Pacific

 

 

February 29

Japan

Industrial Production (January)

 

 

Retail Sales (January)

March 1

Japan

Household Spending (January)

 

 

Unemployment Rate (January)

 

 

PMI Manufacturing (February)

 

China

PMI Manufacturing (February)

 

 

CFLP Manufacturing Index (February)

March 2

Australia

Gross Domestic Product (Q4.2015)

March 3

Japan

PMI Services (February)

 

Australia

Merchandise Trade Balance (January)

March 4

Australia

Retail Sales (January)

 

 

 

 

 

Americas

 

 

February 29

United States

Chicago PMI (February)

 

 

Pending Home Sales (January)

March 1

Canada

Gross Domestic Product (Q4.2015)

 

 

Monthly Gross Domestic Product (December)

 

United States

PMI Manufacturing (February)

 

 

ISM Manufacturing Index (February)

 

 

Construction Spending (January)

March 2

United States

ADP Employment (February)

March 3

United States

Initial Unemployment Claims (week ending prior Saturday)

 

 

PMI Services (February)

 

 

ISM Nonmanufacturing Index (February)

 

 

Factory Orders (January)

March 4

Canada

International Trade (January)

 

United States

International Trade (January)

 

 

Employment Situation (February)

 

*Note — all releases are listed in local time.