On 10 April, 2017 – Stocks were mostly lower to begin the week

Investors were cautious as they waited for earnings season to begin.
United States
Stocks gyrated around the unchanged line but closed slightly higher. The Dow Jones industrials were virtually unchanged (up 1.92 points) and the S&P and Nasdaq added 0.1 percent. While an increase in crude oil prices generated early buying interest, traders quickly cashed in on the early gains. The economic calendar for the week begins quietly but picks up as the week progresses. Traders also continue to keep watch on geopolitical developments following the US strike on a Syrian airbase in retaliation for a chemical weapons attack on civilians. Investors are also waiting for earnings season to begin.
In an event at the University of Michigan’s Ford School of Public Policy on Monday afternoon Fed Chair Janet Yellen said that the Fed plans to increase US interest rates gradually to sustain healthy growth without overheating the economy. In prior statements, she has described employment as “essentially” and “close to” full employment but in today’s comments she questioned whether the economy may be “little below” full employment. Regarding inflation, Yellen said it is near but still below the Federal Reserve’s 2 percent goal, which she stressed is an objective and not a ceiling. In upbeat comments, she said business spending is showing greater strength and that the global economy is operating in a more robust and healthy way.
Bank stocks have retreated of late as investors question lofty valuations and US President Trump’s ability to swiftly introduce simpler regulations and other policies following the failure of a healthcare reform bill. Bank of America, JPMorgan and Wells Fargo retreated. Straight Path Communications surged after AT&T offered a huge premium to buy the owner of wireless spectrum licenses. Swift Transportation jumped after agreeing to a merger with fellow trucking company Knight Transportation. Knight’s shares also advanced. Whole Foods Markets jumped Monday after activist hedge fund Jana Partners revealed that it has taken a 9 percent stake in the supermarket chain and demanded the retailer take steps to improve its share price, including exploring a sale of the company. Kroger and Sprouts Farmers Market also gained.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$16.40 to US$1,250.05. Copper futures were down 1.5 percent to US$2.61. WTI spot crude was up 84 US cents to US$53.08. Dated Brent spot crude was up 73 US cents to US$55.97. The US dollar was up against the Australian dollar. The currency declined against the yen, pound and the Canadian dollar. The US currency was unchanged against the yuan, euro and Swiss franc. The Dollar Index was down 0.2 percent. The yields on both the US Treasury 30 year bond and 10 year note were down 2 basis points to 2.99 percent and 2.36 percent respectively.
Europe
Stocks were mostly lower to begin the new trading week. Geopolitical concerns continue to keep investors on edge following the US airstrikes on a Syrian airbase late last week. The mounting concerns over tensions on the Korean peninsula also added to the cautious mood among investors. Trading activity is expected to be on the light side this week, ahead of the Good Friday and Easter Monday holidays. The FTSE was virtually unchanged (down 0.43 point), the CAC lost 0.5 percent, the DAX was down 0.2 percent and the SMI was 0.3 percent lower.
It was a light day on the economic front. Investors paid little attention to survey data from Sentix, which showed that Eurozone investor confidence strengthened to the highest level in almost a decade in April. The Bank of France downgraded the economic growth outlook for the first quarter. The economy is now forecast to grow 0.3 percent in the first quarter, down from an earlier estimate of 0.4 percent. Italy’s industrial production recovered in February. Industrial output climbed 1 percent on the month after declining 2.3 percent in January.
Fresenius was higher after the healthcare firm said it is in talks to acquire US generic-pharmaceuticals manufacturer Akorn. Stada Arzneimittel jumped after the drug-maker decided to support a joint takeover offer by private-equity firms Bain Capital and Cinven Group. Barclays finished higher after the bank announced that it is under investigation over a whistle blower probe.
BHP Billiton gained percent after an activist US hedge fund urged the mining giant to demerge its petroleum arm. Anglo American slipped after it announced the sale of its Eskom-tied domestic thermal coal operations in South Africa to a subsidiary of Seriti Resources Holdings Proprietary. Oil stocks including BP, Total, Tullow Oil and Royal Dutch Shell advanced on higher oil prices. Randgold Resources and Fresnillo climbed.
Asia Pacific
Asian stocks were mixed as a weaker yen and higher oil prices helped offset worries over rising geopolitical tensions and weaker than expected US jobs data.
The Shanghai Composite was down 0.5 percent after the country’s chief insurance regulator came under investigation by its anti-corruption agency. The Hang Seng was virtually unchanged (down 5.12 points). Hong Kong bucked the regional weakness, due to strength in property stocks and financial counters.
Both the Nikkei and Topix added 0.7 percent as the US dollar rose for a third day against the yen after comments from a top Federal Reserve official reinforcing the Fed’s commitment to increase its fed funds interest rate. Honda Motor and Toyota advanced along with Toshiba. Rising US yields helped lift financial stocks including Sumitomo Mitsui Financial and Mitsubishi UFJ Financial.
The S&P/ASX and All Ordinaries were up 0.9 percent and 0.8 percent respectively. Higher oil and metal prices helped lift commodity stocks. Energy majors such as Woodside Petroleum, Santos, Origin Energy and Oil Search were higher after oil prices extended gains above $52 a barrel. HP Billiton rallied after an activist US hedge fund urged the mining giant to demerge its petroleum arm. The big four banks advanced.
The Kospi dropped 0.9 percent amid concerns over the geopolitical tensions surrounding the Korean Peninsula after the White House increasingly made it clear that it is prepared to “deal with” North Korea and their ballistic missile and nuclear programs alone if China will not help out.
The Sensex was 0.4 percent lower as tepid US jobs data as well as rising geopolitical tensions in the Middle East and the Korean peninsula kept underlying sentiment cautious. Investors also eyed inflation data and earnings results from Infosys due this week for further direction.
Looking Forward
The UK posts March consumer and producer prices. Germany reports April ZEW survey. The Eurozone releases February industrial production. In the US, NFIB March small business optimism index will be reported along with February JOLTS.
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]