On 19 December, 2016 – Global stocks mixed

Investors were cautious after geopolitical events in turkey and Germany.
United States
Stocks advanced Monday with the Dow Jones industrials and S&P both adding 0.2 percent and Nasdaq 0.4 percent higher. The indices were higher earlier in the day but pulled back to into less risky assets accelerated as investors eyed developments in Germany, where at least nine people were killed after a truck rammed through a Christmas market in Berlin. That rattled US investors already looking to potential global troubles after the Russian ambassador to Turkey was killed in Ankara.
Energy stocks were among Monday’s worst performers, falling 0.6% in the S&P 500. U.S. crude settled up 0.4% at $52.12 a barrel after swinging between gains and losses throughout the session. Microsoft, Amazon.com, Intel and Apple climbed. United Technologies advanced on a broker upgrade. Walt Disney gained after its “Rogue One: A Star Wars Story” movie scored the second-largest December opening in history. Energy stocks retreated on fluctuating crude prices.
Federal Reserve Chair spoke at the University of Baltimore’s mid-year commencement. Ms Yellen said there “are indications that wage growth is picking up” which include strong wage gains for younger workers. She said layoffs are low, job openings are high and she highlighted the strength of the 4.6 percent unemployment rate. But she also noted that economic growth this recovery has been slow and productivity growth has been disappointing. And she warned that workers will continue to face challenges from globalization and from new technologies. Ms Yellen made no comments on monetary policy.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$4.65 to US$1,136.25. Copper futures were down 2.5 percent to US$2.51. WTI spot crude was down 11 US cents to US$51.79. Dated Brent spot crude was down 49 US cents to US$54.72. The US dollar was up against the pound and the Canadian and Australian dollars. However, it declined against the yen and euro. The currency was unchanged against the Swiss franc and the yuan. The Dollar Index was up 0.4 percent. The yields on both the US Treasury 30 year bond and 10 year note were down 6 basis points to 3.11 percent and 2.53 percent respectively.
Europe
Stocks were mixed to begin the week as the indices fluctuated between small gains and losses throughout the trading session. Bank stocks were among the weakest as investors locked in profits following the recent rally in the sector. The upcoming Christmas holiday appears to be keeping some investors away from their desks. The FTSE and SMI edged up 0.1 percent, the DAX added 0.2 percent but the CAC retreated 0.2 percent.
Germany’s economic growth is likely to be significantly higher in the fourth quarter according to the Bundesbank. The Bank said industrial production and construction underpinned activity. UK businesses intend to add more jobs next year despite uncertainty about the future relationship with the EU after the Brexit decision.
Air Berlin soared after the airline appointed a new CEO following a series of restructuring moves. Deutsche Bank declined on a broker downgrade. In Paris, Airbus Group declined after Iran reduced its order with Airbus to 100 planes in a contract that will no longer include A380s. Danone retreated after lowering its sales guidance for this fiscal year, citing weaker than expected fourth-quarter performance at its European dairy business. Vodafone was higher on a report that it is eying role in traffic control for drones in Europe. Carnival weakened on a broker downgrade.
Barclays declined on a Bloomberg report that it is severing ties with up to 7,000 clients to boost returns. Standard Chartered, Royal Bank of Scotland and Lloyds also declined. Antofagasta was lower after the company said it would take legal action to overturn a decision by US authorities not to renew mineral leases in Minnesota. Royal Dutch Shell was higher after signing an agreement to sell its Australian aviation business to Viva Energy. BP advanced after the company was awarded a 10 percent interest in Abu Dhabi’s ADCO onshore oil concession, which has a life of 40 years. Banca Monte dei Paschi di Siena retreated in Milan. The company announced that it will launch a share sale in an attempt to avoid being nationalized.
German business sentiment improved to the highest level in nearly three years. Ifo business confidence climbed to 111.0 in December from 110.4 in November.
Asia Pacific
Stocks were mostly lower Monday. Crude oil futures extended Friday’s gains after production was halted at two of Libya’s major oilfields.
The Shanghai Composite was down 0.2 percent thanks primarily to data showing slowing growth in China’s overheated property market. The Hang Seng was down 0.9 percent on predictions that China’s GDP growth will slow in 2017 and the yuan will depreciate by another 3 percent to 5 percent. Hopes for fresh Chinese stimulus also dimmed after China’s top policy makers said they plan prudent and neutral monetary policy and proactive fiscal policy next year.
The Nikkei was virtually unchanged (down 9.55 points) and the Topix slipped 0.1 percent as the yen strengthened and data showed a smaller-than-expected trade surplus in November. Trading was thin as investors took profits from recent gains. Investors were subdued prior to the Bank of Japan’s policy announcement Tuesday although expectations are that there will be no change in policy.
The S&P/ASX climbed 0.5 percent while the All Ordinaries were 0.4 percent higher after Treasurer Scott Morrison gave his mid-year update and all three big rating agencies indicated there would be no downgrade for now. Commonwealth advanced after the bank offloaded its remaining minority stake in Visa for A$439 million. Biotech firm Sirtex Medical tumbled after saying it was formally investigating the sale of A$2 million in shares by its chief executive in October.
The Kospi was down 0.2 percent. The Sensex declined 0.4 percent.
Looking Forward
The Bank of Japan announces its monetary policy decision. The Reserve Bank of Australia publishes minutes of its monetary policy meeting held earlier this month. Switzerland reports its November merchandise trade balance. December UK CBI distributive trades will be released.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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