On 30 March, 2017 – Global stocks were mixed
Asia mostly retreated but Europe and the US were mostly higher on positive US economic data.
United States
US stocks advanced Thursday with the Nasdaq closing at a new record high. The Dow Jones industrials, S&P and Nasdaq all gained 0.3 percent. Financial shares led the way after fourth quarter gross domestic product was revised upward. The energy sector rose for a third straight day, supported by stronger oil prices. Investors are beginning to turn their attention to looming first quarter earnings season to support the lofty valuations for stocks.
Investors have been focusing on recent commentary from Federal Reserve officials suggesting that the Fed remains optimistic about the economy regardless of fiscal policy. Most have suggested the Fed should raise rates at least two more times this year, with some pointing to an even more aggressive policy tightening schedule.
ConocoPhillips rallied after its agreement to sell oil and gas assets. Bank of America and JPMorgan advanced. Lululemon Athletica plunged after the Canadian yoga and leisure apparel retailer said first quarter comparable sales were expected to fall.
U.S. economic growth slowed less than previously reported in the fourth quarter as strong consumer spending provided a boost. Gross domestic product increased at an annualized pace of 2.1 percent, up from the previous estimate of 1.9 percent. Weekly jobless claims were down 3,000 to 258,000. The data reflected the annual new seasonal adjustment factors. A measure of after-tax U.S. corporate profits jumped 22 percent in the fourth quarter compared with the year-earlier period.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$2.30 to US$1,248.80. Copper futures were down 0.1 percent to US$2.68. WTI spot crude was up 87 US cents to US$50.38. Dated Brent spot crude was up 54 US cents to US$52.96. The US dollar was up against the yen, euro, Swiss franc and the Australian dollar. The currency declined against the pound. It was unchanged against the Canadian dollar and yuan. The Dollar Index was up 0.6 percent. The yields on US Treasury 30 year bond and 10 year note were up 4 basis points to 3.03 percent and 2.42 percent respectively.
Europe
European stocks were mixed after fluctuating between small gains and losses for much of the day. The early struggles in Europe were partly due to disappointment with the weak Eurozone economic confidence report. The FTSE slipped 0.1 percent while the CAC and DAX added 0.4 percent and the SMI was 0.5 percent higher.
Daimler was lower after it began trading on an ex-dividend basis. Linde gained after reports that worker representatives of the company are opposed to a merger with US rival Praxair. Peugeot slipped and Total edged higher after the companies renewed their long-standing partnership for automotive lubricants. Vedanta Resources climbed after extending the term of its chief executive officer until the end of August. SSE declined after warning of lower earnings at its retail gas and electricity arm. Ashtead Group gained 2.44 percent after a broker upgrade. Hennes & Mauritz was lower in Stockholm after it reported a fall in profit for the latest quarter and unveiled a new store brand.
Several heavyweight UK stocks went ex-dividend including Old Mutual, Schroders, Smith & Nephew and Prudential. All declined. However, miners were boosted by strong metals prices which provided support for Glencore, Rio Tinto and Anglo American. The London Stock Exchange after the disappointment over a planned merger with Deutsche Börse being denied by the EU antitrust regulator advanced.
March Eurozone economic confidence weakened marginally — improvements in sentiment among consumers and builders were offset by declines in industrial and services sectors. The economic sentiment index slipped to a reading of 107.9 from 108.0 in February. German flash consumer price index slowed to a four-month low. The flash CPI eased to an annual increase of 1.6 percent from 2.2 percent the month before.
Asia Pacific
Shares ended the day mostly lower as oil prices retreated in Asia trading after two days of gains and investors assessed the possible effects of a hard Brexit as the UK began the formal process of exiting the European Union.
The Shanghai Composite was down 1.0 percent. Investors were concerned about tightening liquidity and stepped-up regulation in the property market. The Hang Seng was 0.4 percent lower.
The Nikkei was down 0.8 percent and the Topix lost 0.9 percent. The indices were dragged down by financials after US Treasury yields fell on reports that ECB officials are wary of altering their dovish message before June. The yen was flat after comments from Federal Reserve officials suggested that the Fed is on track to raise interest rates twice more this year. Toshiba climbed after it received shareholder approval for selling its memory chip unit.
Both the S&P/ASX and All Ordinaries advanced 0.4 percent led by mining and energy stocks as commodity prices strengthened and domestic data on new home sales and job vacancies painted a positive picture of the economy. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group gained along with energy majors Woodside Petroleum and Oil Search.
The Kospi slipped 0.1 percent on institutional selling as investors pondered the economic impact of Brexit. The Sensex ended 0.4 percent higher after the Modi government moved closer to implementing the GST regime from July 1.
Looking Forward
Japan posts February data for unemployment, household spending, consumer prices and industrial production. China releases March CFLP manufacturing PMI. France reports February consumption of manufactured goods, CPI and PPI. Germany releases March unemployment rate. The UK posts the final estimate of fourth quarter gross domestic product. The Eurozone releases flash March harmonized index of consumer prices. Canada posts January monthly gross domestic product. The US releases February personal income and spending, March Chicago PMI and consumer sentiment.
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
Fidelity disclaimer:
The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.
Jesmond Mizzi Financial Advisors Disclaimer:
This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]