On 19 September, 2016 – Global stocks mostly higher Monday

Investors wait for the Bank of Japan and Federal Reserve monetary policy decisions.
United States
After rising in the morning, markets gave up earlier gains in afternoon trading. Bank shares rose as investors waited for the Federal Reserve to meet this week. Shares of several technology companies rose on deal news. Both the Dow Jones industrials and S&P were virtually unchanged on the day while Nasdaq slipped 0.2 percent.
Banks advanced as investors hoped the Federal Reserve might announce an increase in interest rates on Wednesday. JPMorgan Chase and Bank of America shares gained. Isle of Capri Casinos agreed to be bought by Eldorado Resorts for $23 per share or $950 million in cash and stock. Combined, the companies own 21 casinos and racetracks. Isle of Capri stock jumped while Eldorado Resorts retreated. Information technology products distributor Tech Data jumped after it said it would buy the technology solutions business of Avnet for $2.6 billion in cash and stock. Tech Data said the deal would give it operations in 35 countries. Both companies advanced on the day.
Network control company Infoblox gained after it agreed to be bought by Vista Equity Partners for $26.50 per share or $1.51 billion. Apple, which surged last week and reached its highest price this year, retreated along with Intel. Johnson & Johnson agreed Friday to buy Abbott Laboratories’ eye health business for around $4.3 billion in cash. Both companies were lower on Monday. Sarepta Therapeutics soared after the Food and Drug Administration approved its drug Exondys 51, a treatment for a type of muscular dystrophy. General Motors gained on a broker upgrade.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$6.50 to US$1,314.85. Copper futures were down 0.2 percent to US$2.16. WTI spot crude was up 23 US cents to US$43.26. Dated Brent spot crude was up 13 US cents to US$45.90. The US dollar was down against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.1 percent. The yield on US Treasury 30 year bond was unchanged at 2.45 percent while the yield on the 10 year note edged up 1 basis point to 1.70 percent.
Europe
Stocks advanced Monday, fueled by rising commodity prices — and especially by the rebound in crude oil prices. Crude oil prices rose back above $43 a barrel after Venezuelan President Nicolas Maduro said on Sunday that a deal between OPEC and non-OPEC countries to stabilize oil markets could be announced this month. The upward move was tempered by investor caution before the Bank of Japan and Federal Reserve policy announcements Wednesday. The FTSE jumped 1.5 percent, the CAC climbed 1.4 percent, the DAX advanced 1.0 percent and the SMI added 0.8 percent.
UK financial institutions stand to lose their “passporting” rights. The rights allow them to operate freely across Europe. According to European Central Bank governing council member and Bundesbank president Jens Weidmann, the rights would automatically cease to apply if Great Britain is no longer at least part of the European Economic Area (EEA). Passporting rights are crucial for British financial institutions, many of whom operate from London and provide services across the EU. These rights eliminate the need for individual licenses to operate in different European countries. Losing passporting rights could deal a severe blow to London’s status as a financial services hub and many institutions would consider relocating their headquarters, Weidmann said.
Deutsche Bank dropped, extending Friday’s losses on concerns over its fragile finances. Both ThyssenKrupp and Salzgitter advanced. In Paris, food services and facilities management group Sodexo was up after a broker upgrade. Sanofi advanced after it filed a patent infringement suit against Merck Sharp & Dohme in the United States alleging infringement of ten patents. Rolls Royce Holdings advanced on reports that it is reducing more than 200 positions from its middle management. Weir Group gained on a broker upgrade as did Glencore. Anglo American, Fresnillo, BHP Billiton, Rio Tinto and Randgold Resources increased. Wm Morrison Supermarkets was higher on a broker upgrade.
Asia Pacific
Asian stocks rose broadly on Monday, as hopes of more Bank of Japan easing, positive home price data from China and rallying oil prices helped investors shrug off news related to possible terrorist attacks in the United States. Investors are speculating that the BoJ will probably cut the rate on some bank reserves further below zero. Markets in Japan were closed for a national holiday.
The Shanghai Composite was up 0.8 percent as traders returned from the mid-autumn festival holiday and data indicated that the average new home prices in China’s 70 major cities hit a six-month high in August, defying government’s efforts to rein in soaring home values and deter speculative purchases. The Hang Seng added 0.9 percent with property stocks pacing gainers on expectations of continuous money flows from China into Hong Kong stock markets.
Markets in Australia encountered technical problems. The S&P/ASX was virtually unchanged while the All Ordinaries slipped 0.1 percent. The Kospi added 0.8 percent as traders returned to their desks following last week’s holidays. The TAIEX soared 2.8 percent led by Apple suppliers amid reports that sales of its latest iPhone will likely be the strongest in up to four years. The Sensex edged up 0.1 percent.
Looking Forward
Australia posts second quarter residential property prices and the Reserve Bank of Australia publishes minutes from its most recent monetary policy meeting. The US releases August housing starts.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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