On 09 May, 2016 – Global shares were mixed

Energy companies dragged down indices in Europe and the US.
United States
US stocks indices were mixed Monday as worries again about China pulled down prices for oil. Energy companies were down Monday after weak economic reports from China renewed fears that the economy was slowing. The Dow Jones industrials retreated 0.2 percent while the S&P and Nasdaq advanced 0.1 percent and 0.3 percent respectively.
Chevron and Exxon Mobil declined. LendingClub plunged after its chairman and chief executive resigned following an internal review of the sale of loans to an investor. Krispy Kreme Doughnuts agreed to be taken private by JAB Holding Company for about $1.35 billion, or $21 per share. The company’s board approved the sale and shareholders will vote on it in June. Krispy Kreme’s stock jumped on the news.
Allergan, which makes Botox, gained after reporting encouraging results from a late-stage clinical study of a treatment for uterine fibroids, a noncancerous growth in the uterus. Mallinckrodt, which has tumbled in recent months as investors worried about its ability to raise drug prices, also advanced. Health care real estate investment trust HCP rose after a strong earnings report. Tyson Foods was up after it raised its annual projections and its second-quarter results surpassed estimates. Hormel Foods also advanced. Tribune Publishing traded lower after it tried to block a takeover by the USA Today owner Gannett. Tribune said it adopted a one-year shareholder rights plan. Known as a “poison pill,” these types of plans are used to fight off hostile takeovers.
Oil extended declines after shifting winds moved wildfires away from oil-sands facilities in Canada’s Alberta region, reducing speculation production cuts would make a substantial dent in U.S. stockpiles. Crude also declined after Saudi Arabia replaced its oil minister Ali al-Naimi over the weekend with the chairman of state energy company Saudi Arabian Oil Khalid Al-Falih. Speaking in January at the World Economic Forum in Davos, Al-Falih indicated that Saudi Arabia plans to act vigorously to defend its market share and exports as the market re-balances.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$23.75 to US$1,265.25. Copper futures were down 2.2 percent to US$2.11. WTI spot crude was down US$1.31 to US$43.35. Dated Brent spot crude was down US$1.78 to US$43.59. The US dollar was up against the yen, euro, pound, and the Canadian and Australian dollars. However, it declined against the Swiss franc. The Dollar Index was up 0.3 percent. The yield on US Treasury 30 year bond was down 1 basis point to 2.62 percent while the yield on the 10 year note was down 3 basis points to 1.75 percent.
Europe
Stock indices were mixed Monday with some rebounding from one month lows as oil prices climbed and readings on German factory orders and Eurozone investor confidence beat estimates. The CAC was up 0.5 percent, the DAX gained 0.5 percent and the SMI added 1.2 percent. However, the FTSE slipped 0.2 percent.
While German factory orders expanded at the fastest pace in nine months in March thanks to stronger overseas demand, a gauge of Eurozone investor confidence hit a 4-month high in May. Investors shrugged off weak data from mortgage lender Halifax showing the UK house price index declined more than expected in April after the introduction of a new tax on the purchase of rental properties. Oil prices climbed about 2 percent in the wake of a change at top in Saudi Arabia’s energy ministry and raging wildfires in Canada. Investors are also monitoring the extraordinary Eurogroup meeting where finance ministers will discuss possible debt relief measures to help reduce Greece’s debt burden.
Low-cost airline easyJet advanced in London ahead of its quarterly results due on Tuesday. G4S shares jumped after the security services and outsourcing provider issued a reassuring trading update showing growth in revenue in the first quarter despite a challenging backdrop. Anglo American, Antofagasta, BHP Billiton, Glencore and Rio Tinto retreated after Chinese data released over the weekend showed both exports and imports fell more than expected in April. BP Plc traded marginally higher while Royal Dutch Shell slipped. Total advanced after the oil & gas company said it has filed a friendly tender offer for Saft, a manufacturer of advanced technology batteries, for $1.1 billion. Italian lender UniCredit dropped on concerns about its capital levels and governance. Vestas Wind Systems climbed after an analyst said new US tax plans would fuel a surge in orders.
Asia Pacific
Asian stocks were mixed Monday. China’s April merchandise trade data disappointed and tempered investor optimism that stemmed from a combination of higher oil prices and reduced expectations that the Federal Reserve would increase its fed funds rate this year.
The Shanghai Composite dropped 2.8 percent. April’s merchandise trade data showed further signs of weakness with both exports and imports falling more than expected. Exports dropped 1.8 percent in US dollar terms from a year ago after increasing 11.5 percent in March while imports dropped 10.9 percent, slowing further from the 7.5 percent decline in March. The Hang Seng edged up 0.2 percent.
The Nikkei snapped a six-day losing streak as the yen’s rally paused after comments on the currency from Finance Minister Taro Aso. The Nikkei added 0.7 percent after losing nearly 9 percent in the past six sessions. Automakers Honda Motor, Mazda and Toyota advanced. Shares of Ono Pharmaceutical gained after the company reported preliminary full-year operating profit of ¥30 billion.
Both the S&P/ASX and All Ordinaries added 0.5 percent as gains among banks and energy companies outweighed losses in the materials sector. Commonwealth Bank was up after reporting 4.5 percent rise in third-quarter quarter earnings. National Australia Bank and Westpac were up but ANZ retreated. Oil Search, Woodside Petroleum, Santos and Origin Energy closed higher. Miners ended broadly lower, with Rio Tinto and Fortescue Metals Group falling as Chinese steel and iron ore futures fell about 6 percent in the wake of the weak Chinese trade data, one of Australia’s top trade partners.
The Kospi lost 0.5 percent after it returned from a two day holiday. The Sensex rallied 1.8 percent.
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*
China posts its consumer and producer price indices for April. Germany, France and Italy report March industrial production. The UK releases March merchandise trade data. In the US, March JOLTS and wholesale trade will be released.
*Note — all releases are listed in local time.

Source: Fidelity

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