On 25 April, 2016 – Stocks retreat globally

Investors were waiting for policy decisions from the Federal Reserve, Bank of Japan and Reserve Bank of New Zealand.
United States
Stocks declined on disappointing earnings news and economic data. The S&P and Nasdaq were down 0.2 percent and the Dow Jones industrials were 0.1 percent lower.
Energy companies declined along with oil and gas prices. Xerox tumbled after it cut its profit estimate for the year after its first-quarter profit dropped 85 percent. The company’s costs went up as it prepared to split into two businesses and its revenue fell. Gannett, the owner of USA Today and other papers, offered to buy Tribune Publishing for $388 million. Tribune owns 11 newspapers including The Los Angeles Times and Chicago Tribune. It said Tribune has refused to start constructive talks. Gannett stock advanced while Tribune stock skyrocketed. Industrial and materials companies declined. Union Pacific retreated along with Caterpillar. Packaging companies WestRock and International Paper were lower. Tyson Foods and supermarket operator Kroger were up as was McCormick.
For the third month in a row, sales of new homes decreased. New home sales were down 1.5 percent with sales in the West dropping more than 20 percent. Homebuilder stocks PulteGroup and KB Home dropped.
As part of a series of economic reforms, the government of Saudi Arabia said a portion of the world’s largest oil company would go public. The kingdom valued Saudi Aramco at more than $2 trillion.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$4.35 to US$1,238.90. Copper futures were down 0.7 percent to US$2.25. WTI spot crude was down 95 US cents to US$42.78. Dated Brent spot crude was down 52 US cents to US$44.59. The US dollar was down against the yen, euro, pound and Swiss franc. However it was up against the Canadian and Australian dollars. The Dollar Index was down 0.2 percent. The yield on US Treasury 30 year bond was up 1 basis point to 2.72 percent while the yield on the 10 year note was up 2 basis points to 1.91 percent.
Europe
European markets began the new trading week the way they ended last week — down. Investors began the week cautiously before the FOMC and Bank of Japan monetary policy meetings mid-week. Weaker than anticipated German Ifo business confidence data did little to inspire risk taking. Both the FTSE and DAX lost 0.8 percent, the CAC was down 0.5 percent and the SMI retreated 0.4 percent.
Deutsche Bank, Commerzbank, Société Générale, BNP Paribas and Credit Agricole were lower. Also down were E.ON, RWE, ThyssenKrupp and Salzgitter. In Paris, EDF sank after delaying a final investment decision on its contentious Hinkley Point nuclear project until September. Technip and Total retreated. In London, fashion retailer Ted Baker and Imperial Brands both gained on brokerage upgrades. Ashtead Group also finished higher on a broker upgrade. Mining stocks were under pressure due to falling commodity prices. Anglo American, BHP Billiton, and Rio Tinto tumbled. Philips Electronics retreated in Amsterdam after saying it is considering an initial public offering of shares for its lighting division. Oil companies including BP and Royal Dutch Shell declined.
Germany’s April Ifo survey reading for overall confidence was 106.6, about the same as in March. Current conditions slipped to 113.2 while expectation climbed to 100.4.
Asia Pacific
Most stock indices retreated Monday as oil prices fell after three weeks of gains and concerns intensified over dangers to China’s debt and commodities markets. Investors were also cautious prior to central bank policy announcements from the US, New Zealand and Japan.
The Shanghai Composite was down 0.4 percent while the Hang Seng declined 0.8 percent. Chinese shares fell on concerns over risks in debt and commodities markets after the official Xinhua News Agency reported another scam in China’s risk-laden shadow banking sector involving about 1 billion yuan of investor funds. In China’s commodities market, exchanges are trying to cool speculation after turnover of rebar futures reached 606 billion yuan last Thursday, more than China’s full year production of steel rebar — a reinforcing steel bar used in concrete.
The Nikkei was down 0.8 percent even as the yen hit a three week low against the dollar on expectations the Bank of Japan could start lending to banks at negative rates after its two-day policy review ending on April 28. Mitsubishi Motors continued to tumble after news it had falsified fuel economy data on its vehicles. Oil explorer Inpex and Japan Petroleum declined as oil prices retreated during Asian hours after a strong rally into the end of last week. Sony declined after it said it would delay announcing earnings forecasts for the full year in order to assess the impact of the powerful earthquakes that have halted its image sensor plant in southern Japan. Honda Motor, Panasonic, Toyota Motor and Mazda Motor advanced on the yen’s decline.
The Kospi was virtually unchanged while the Sensex retreated 0.6 percent. Markets in Australia and New Zealand were closed for ANZAC day.
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*
In the US, March durable goods orders and April consumer confidence along with April Richmond Fed manufacturing index and February Case-Shiller house price index will be released.
*Note — all releases are listed in local time.

Source: Fidelity

Fidelity disclaimer:

The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.

Jesmond Mizzi Financial Advisors Disclaimer:

This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]