On 24 November, 2016 – Global markets were mixed in light trading
US markets were closed for Thanksgiving. European shares rose, while Asian markets were broadly lower.
Europe
European stocks scored modest gains during a quieter-than-usual session as US markets were closed for Thanksgiving. The Stoxx Europe 600, Germany’s DAX 30 and France’s CAC 40 gained 0.3%, while the UK’s FTSE 100 rose 0.2%.
In the UK, mining shares were mixed as the US dollar rose. A higher dollar can hurt dollar-denominated metals prices and related stocks. Shares in Randgold Resources and BHP Billiton slid, while Rio Tinto and Antofagasta advanced. Elsewhere, Sweden’s Boliden and ArcelorMittal gained. However, Thyssenkrupp’s shares declined after the German industrial conglomerate’s full-year profit fell short of expectations.
On the economic front, German business sentiment was steady in November, with the Ifo institute saying its business climate index came in at 110.4 points in November, broadly in line with analysts’ forecasts.
Asia Pacific
Asian markets were broadly lower Thursday, in response to strong economic data from the US, which raised the odds of an increase in interest rates, strengthening of the US dollar and increased capital outflows from Asia. Australia’s S&P/ASX 200 was flat, Hong Kong’s Hang Seng Index was down 0.3% and South Korea’s Kospi sank 0.8%. However, Japan’s Nikkei was up 0.9%, while the broader Topix advanced 0.6%, rising for an 11th day to post the longest winning streak since May 2015.
In China, blue-chip stocks rose as investors chased cyclical stocks, but the broader market struggled for traction as growth stocks were under pressure. The outperformance of blue-chips reflects investors’ renewed inclination towards cyclical sectors such as financials and commodities amid signs that the economy is stabilising. Shares in China’s major base metal producers rallied across the board as futures prices of copper, zinc and nickel jumped.
Japanese stocks advanced as the US dollar rose further against the yen, lifting prospects for better corporate earnings. Japanese stocks benefit from the weaker yen, which boosts the competitiveness of the country’s exporters. Shares in Toyota Motor, Honda Motor and Panasonic surged. However, banking stocks, including Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group, declined.
Looking Forward
The following indicators will be released this week…
Europe
Nov 25
UK
Gross Domestic Product (Q3.2016 second estimate)
Asia Pacific
Nov 25
Japan
Consumer Price Index (October)
Americas
Nov 25
United States
International Trade in Goods (October)
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
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