On the week, stocks were mixed in Asia and Europe and were up in the US.
United States
Stocks were up for the fourth day in five and their fourth consecutive gain after a turbulent Monday that sent investors seeking safety after Britain’s vote to leave the European Union. The market came close to regaining all the ground it lost with the three indices ending the week up over 3 percent. The Dow Jones industrials edged up 0.1 percent, the S&P was up 0.2 percent and the Nasdaq added 0.4 percent. For the week, the Dow and S&P both gained 3.2 percent while the Nasdaq was 3.3 percent higher. Volume was light in pre-holiday weekend trading. US markets will be closed on July 4 for the Independence Day holiday.
Consumer focused companies rose more than the rest of the market. Netflix advanced. Automakers were higher after reporting growth in June sales. Ford Motor and General Motors were up. Robust demand for pickups and SUVs pushed up US auto sales in June but the growth fell short of estimates. Harley-Davidson jumped after unsubstantiated market chatter that the motorcycle company might be a takeover target. Micron Technology slumped after the memory chip maker reported disappointing sales and gave an outlook that fell short of expectations. The company also said it will eliminate jobs to reduce its spending.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$19.25 to US$1,340.00. Copper futures were up 1.0 percent to US$2.22. WTI spot crude was up 66 US cents to US$48.99. Dated Brent spot crude was down 93 US cents to US$49.68. The US dollar was up against the pound. It declined against the euro, yen, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.4 percent. The yield on US Treasury 30 year bond was down 7 basis points to 2.23 percent while the yield on the 10 year note was down 4 basis points to 1.44 percent.
Europe
European markets advanced Friday. They too were up for four consecutive trading days after Monday’s tumble. Uncertainty remains regarding how matters will proceed in negotiating the UK’s split from the EU and how it will impact both the UK and Europe. The FTSE was up 1.1 percent on the day and soared 7.2 percent on the week. The CAC advanced 0.9 percent Friday and 4.1 percent on the week. The DAX added 1.0 percent and 2.3 percent while the SMI was 0.8 percent and 4.4 percent higher on the day and week respectively.
Bank of England Governor Mark Carney hinted at providing further stimulus in a speech on Thursday. In remarks to business leaders, Carney said a material slowing in economic growth now looks likely to be the central forecast in reaction to Brexit. Carney subsequently said the deteriorating economic outlook will likely require some monetary policy easing over the summer.
ECB executive board member Peter Praet cautioned Friday that the uncertainty stemming from the UK referendum could weigh on economic confidence and partly reverse the recent improvements in investment and consumption. He said that it is essential to swiftly establish an orderly process that governs the path towards a new post-referendum steady state so as to allow households and firms to adjust their economic decisions to the new environment.
Temenos Group jumped after Standard Chartered Bank selected its wealth management program. Automakers Volkswagen, Daimler, BMW, Peugeot and Renault advanced. ThyssenKrupp and Salzgitter rallied. Deutsche Bank climbed but Commerzbank slipped. Technip and Total advanced. In London, BHP Billiton retreated after suffering a fresh setback regarding the Samarco dam incident in Brazil. Fresnillo and Randgold Resources were higher on rising gold prices. Berkeley Group, Persimmon, Taylor Wimpey and Barratt Development gained.
Eurozone’s final manufacturing PMI rose to 52.8 in June from 51.5 in May. This was the fastest growth in six months. The UK manufacturing PMI rose to 52.1 from a revised reading of 50.4 in May, its highest level since January.
Asia Pacific
Most Asian stocks rose Friday — hints of further central bank stimulus helped offset sluggish Chinese and Japanese data. While Bank of England Governor Mark Carney hinted at fresh economic stimulus measures this summer, a Bloomberg report suggested that the European Central Bank is considering loosening the rules for its bond purchases in response to the Brexit vote.
The Shanghai Composite edged up 0.1 percent as investors devaluated mixed economic data and comments from the People’s Bank of China late on Thursday that there are no reasons for the long-term weakening of the yuan. Growth in China’s CFLP manufacturing PMI stalled in June at the breakeven point of 50.0 while Caixin’s manufacturing PMI hit a four-month low reading of 48.6. The disappointing Chinese data added to pressure on Beijing to stimulate the economy by hastening infrastructure investment and urbanization. On the week, the Shanghai Composite was up 2.7 percent. Markets in Hong Kong were closed for a holiday.
The Nikkei added 0.7 percent on the day and was 4.9 percent higher on the week. The Bank of Japan’s Tankan index for big manufacturers’ sentiment held steady in the second quarter of 2016 while May household spending fell for the third straight month and the May core CPI excluding fresh food dropped for the third straight month, making a strong case for fresh BoJ policy action. Nomura Holdings, Toyota Motor, Toshiba, Mitsubishi UFJ financial and Sumitomo Mitsui Financial advanced. SoftBank Group retreated on reports that U.S. regulators are examining the company on the heels of shareholder accusations of conflicts of interest and insider trading. Japan’s manufacturing sector continued to contract in June, albeit at a slower pace. The manufacturing PMI reading was 48.1 after 47.7 in May.
Both the S&P/ASX and All Ordinaries were up 0.3 percent on the day. For the week, both indices were up 2.6 percent. Shares advanced for a third straight day on optimism that policymakers will introduce measures to curb the economic fallout from Britain’s vote to leave the European Union. BHP Billiton advanced despite suffering a fresh setback regarding the Samarco dam incident in Brazil. Fortescue Metals Group, Regis Resources and Newcrest climbed.
The Kospi added 0.9 percent and was up 3.2 percent on the week. The Sensex added 0.5 percent Friday and 2.8 percent 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

July 5

Australia

Reserve Bank of Australia Monetary Policy Announcement

The following indicators will be released this week…

Europe

July 4

Eurozone

Producer Price Index (May)

July 5

Eurozone

Services & Composite PMI (June)

Eurozone

Retail Sales (May)

Germany

Services & Composite PMI (June)

France

Services & Composite PMI (June)

UK

Services PMI (June)

July 6

Germany

Manufacturing Orders (May)

July 7

Germany

Industrial Production (May)

France

Merchandise Trade (May)

UK

Industrial Production (May)

July 8

Germany

Merchandise Trade (May)

France

Industrial Production (May)

UK

Merchandise Trade (May)

Asia/Pacific

July 5

Australia

Retail Sales (May)

Merchandise Trade (May)

July 10

China

Consumer Price Index (June)

Producer Price Index (June)

Americas

July 5

United States

Factory Orders (May)

July 6

Canada

International Trade (May)

United States

International Trade (May)

ISM Nonmanufacturing Survey (June)

July 7

United States

Initial Unemployment Claims (week ending prior Saturday)

July 8

Canada

Labour Force Survey (June)

United States

Employment Situation (June)

*Note — all releases are listed in local time.

Source: Fidelity

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