On 16 May, 2016 – Oil prices climbed

Shares were higher in Asia and the US but mixed in thin holiday trading in Europe.
United States
US stocks rallied Monday thanks to a jump in Apple shares and gains from energy stocks that were backed by stronger oil prices. The Dow Jones industrials and S&P added 1.0 percent and the Nasdaq rallied 1.2 percent.
Oil prices advanced after news of continued production troubles in Nigeria and an upbeat forecast from analysts. Berkshire Hathaway, Warren Buffett’s holding company, bought 9.8 million Apple shares as the tech giant traded near its lowest price in almost two years. Apple stock rallied. Memorial Resource Development gained after Range Resources said it would buy it for $3.3 billion. Range Resources stock retreated. Anacor Pharmaceuticals soared after Pfizer announced a deal to buy the company for $5.2 billion. Tribune Publishing jumped after USA Today owner Gannett raised its offer to buy the rival newspaper publisher. Gannett increased its bid to $15 per Tribune share, up from $12.25. Gannett shares advanced.
On the U.S. economic front, the May Empire State manufacturing survey unexpectedly declined. The New York Fed said its general business conditions index slid to a negative 9.0 in May from a positive 9.6 in April. A negative reading indicates a contraction in regional manufacturing activity. Expectations were for a positive reading of 7.0. A separate report from the National Association of Home Builders said homebuilder confidence held steady at a reading of 58 in May.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$19.85 to US$1,285.75. Copper futures were up 0.8 percent to US$2.09. WTI spot crude was up US$1.66 to US$47.87. Dated Brent spot crude was up US$1.16 to US$48.99. The US dollar was up against the yen and Swiss franc. However, it declined against the euro, pound and the Canadian and Australian dollars. The Dollar Index was down 0.1 percent. The yield on US Treasury 30 year bond was up 4 basis points to 2.59 percent while the yield on the 10 year note was up 5 basis points to 1.75 percent.
Europe
Stocks were mixed in quiet trading with several markets including the DAX and the SMI closed in observation of Whit Monday. Weak economic data from China and the United States weighed on investor sentiment. However, rising commodity prices provided a boost to mining, resource and energy stocks. The FTSE was up 0.2 percent while the CAC lost 0.2 percent. The MIB was virtually unchanged while the Ibex was 0.5 percent lower.
The Confederation of British Industry downgraded its UK growth outlook as uncertainty ahead of the EU referendum weighs on investment plans. The CBI lowered its growth outlook to 2 percent for both 2016 and 2017. The projection for 2016 was lowered from 2.3 percent and that for 2017 from 2.1 percent. There are signs that uncertainty over the outcome of the EU referendum is having a tangible impact on the spending plans of some firms. The CBI noted that growth is set to be driven by household spending and investment, but the deterioration in the global economic outlook, including weaker prospects for China and other emerging markets continue to represent major challenges.
Eutelsat Communications sank on a broker downgrade. Total and Technip advanced. In London, Prudential edged up despite a broker downgrade. British Land declined after the company reported earnings that were lower than a year ago. Drax weakened on a broker downgrade. Anglo-American gained after a broker upgrade. The rest of the mining stocks including Antofagasta, Fresnillo, BHP Billiton, Glencore and Rio Tinto also turned in a strong performance thanks to rising commodity prices. Telecom Italia advanced in Milan, after nearly tripling its target for reducing expenses by 2018.
Asia Pacific
Asian stocks advanced as gains in oil prices and hopes for economic stimulus in Japan helped investors shrug off disappointing Chinese data.
The Shanghai Composite added 0.8 percent despite a raft of disappointing data pointing to continued economic weakness. April industrial output was up 6.0 percent from a year earlier, down from 6.8 percent growth in March and below expectations. Retail sales also were below expectations. They were up 10.1 percent after increasing 10.5 percent in March. Fixed-asset investment in urban areas grew by a less than expected 10.5 percent. Sentiment was bolstered somewhat after the China Securities Regulatory Commission denied media reports about an adjustment to the policies on refinancing and mergers and acquisitions by listed companies. The Hang Seng was up 0.8 percent.
The Nikkei advanced 0.3 percent. Shares rallied earlier in the day after media reports suggested that Prime Minister Shinzo Abe will postpone a planned sales tax increase scheduled for next year. However, the early rally faded soon after a top government spokesman denied the report. Exporters ended mixed, with Nissan Motor and Panasonic climbing while Sony, Sharp and Toshiba ended lower. Shiseido soared after raising its full-year profit forecast. Sumitomo Electric Industries jumped after projecting an increase in its operating profit. But Fast Retailing and Softbank declined. Mitsubishi UFJ Financial Group was lower after reportedly promoting two women to top executive ranks at its core banking unit.
The S&P/ASX added 0.6 percent while the All Ordinaries climbed 0.4 percent. Sirtex Medical rallied after appointing Kevin Richardson as its chief executive for the Americas. Primary Health Care and Sonic Healthcare advanced. Lenders also found fresh support, with the big four banks advancing on the day. BHP Billiton and Rio Tinto gained despite a slump in iron prices below US$54 a ton.
The Kospi was virtually unchanged (up 0.92 point). The Sensex ended a choppy trading session 0.6 percent higher. While higher oil and metal prices as well as broad-based gains in Asia offered some support, overall gains for Sensex were capped by sluggish Chinese data and slightly worrying inflation data on the domestic front. India’s wholesale price based inflation unexpectedly turned positive for the first time in 18 months in April, driven by costlier food items such as vegetables and pulses.
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*
The Reserve Bank of Australia publishes minutes from its policy meeting held earlier this month. The UK releases April consumer and producer price indices. The Eurozone releases March merchandise trade data. In the US, April consumer price index, housing starts and industrial production will be released.
*Note — all releases are listed in local time.

Source: Fidelity

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