On 29 September, 2017 – Shares were mostly higher on the last day of the third quarter and September.
Investors will be anxiously waiting third quarter earnings reports.
United States
Trading was subdued on the last day of September and the third quarter. However both the Nasdaq and S&P managed to close at new record highs. The Dow Jones industrials edged up 0.1 percent, the Nasdaq added 0.7 percent and the S&P was 0.4 percent higher. For the week, the three indices were up 0.2 percent, 1.1 percent and 0.7 percent respectively. The three indices also were higher for September. The three have been up eight of nine months. Investors were trying to digest the administration’s tax cut initiative.
US President Donald Trump met with four candidates for the upcoming Federal Reserve chair vacancy. Present chair Janet Yellen’s term ends in February. The administration said a decision on the appointment will be made in the next several weeks.
August personal income was up 0.2 percent on the month after increasing 0.3 percent in July. On the year, income was up 2.8 percent from a year ago. Personal spending inched up 0.1 percent after increasing 0.3 percent in July. On the year, spending advanced 3.9 percent. September final consumer sentiment reading was 95.1, down from August’s 96.8 as hurricanes pummeled sentiment.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down 25 US cents to US$1,283.10. Copper futures were down 0.87 percent to US$2.96. WTI spot crude was up 11 US cents to US$51.67. Dated Brent spot crude was down 37 US cents to US$56.79. The US dollar was up against the yen, pound and the Canadian and Australian dollars. It declined against the euro and Swiss franc. The Dollar Index was down 0.1 percent. The yield on the US Treasury 30 year bond was down 1 basis point to 2.86 and the 10 year note yield was up 2 basis points to 2.33 percent.
European markets
European markets advanced across the board Friday, extending gains from the previous six trading days. The recent upward trend in Europe brought the markets to their highest level in nearly two months. The FTSE and CAC added 0.7 percent each while the DAX was up 1.0 percent and the SMI, 0.5 percent. Only the FTSE retreated during the month of September, down 0.8 percent. The CAC, DAX and SMI advanced 4.8 percent, 6.4 percent and 2.6 percent respectively.
Volkswagen declined after its former engine chief was reportedly arrested in connection with its diesel emission scandal. Porsche retreated. In Paris, Orange rose after its CEO ruled out buying stakes in Bouygues or Vivendi. In London, Petra Diamonds climbed after the diamond mining group said workers had ended a strike on pay at its Finsch and Koffiefontein mines.
Aviva advanced after selling its entire holding in its joint venture in Italy to Avipop Assicurazioni to Banco BPM for €265 million. ABN Amro climbed on a broker upgrade. Glencore, Rio Tinto, BHP Billiton and Anglo American gained. Oil majors including Royal Dutch Shell and BP also advanced. Swatch and Richemont climbed. Zurich Insurance, Swiss Re Baloise and Swiss Life were higher as were Novartis, Roche and Nestlé in Zurich.
European economic data were mixed. In Germany, unemployment tumbled to a record low but German retail sales disappointed. Traders also continued study the proposed US tax reform plan to attempt to assess the path forward for the proposal. September flash harmonized index of consumer prices for the Eurozone was unchanged at 1.5 percent from a year ago. France's consumer spending decreased in August after rebounding in the previous month. Consumer spending fell 0.3 percent on the in August, reversing a 0.6 percent rise in July. Final estimate of UK second quarter gross domestic product was confirmed at 0.3 percent on the quarter.
Asia Pacific
Asian stocks were mixed Friday, although overall gains remained muted given expectations of a US Federal Reserve rate increase in December. Caution prior to upcoming holidays in China and South Korea for the October second also served to keep gains lower. The US dollar rally paused and gold held near six-week lows on improved risk appetite following the tax reform speech from US President Donald Trump.
The Shanghai Composite was up 0.3 percent. The focus is now on the upcoming Communist Party Congress beginning October 18 — a once-every-five-years meeting where new leaders are appointed and the government’s key political and economic initiatives are laid out, though details are usually not announced until much later. The Hang Seng added 0.5 percent on the day. For the week, the Shanghai Composite slipped 0.1 percent while the Hang Seng retreated 1.2 percent. Both indices were down for the month of September.
The Nikkei was down 6.83 points and the Topix declined 0.1 percent event though a slew of August data offered a mostly positive picture of the economy. Industrial output bounced back in August after falling in July, core inflation accelerated amid continued tightness in the labor market and household spending rose while growth in the retail sector slowed in the month. Investors were wary of political developments after Tokyo Governor Yuriko Koike emerged as the main challenger to Japan Prime Minister Shinzo Abe ahead of the October 22 snap election. The Nikkei and Topix added 3.6 percent and 3.5 percent respectively on the month. Toshiba rallied 2.9 percent after the company struck an $18 billion deal to sell its flash memory unit to a consortium led by US private equity firm Bain Capital.
Both the S&P/ASX and All Ordinaries added 0.2 percent Friday. For the week, the All Ordinaries added 0.1 percent while the S&P/ASX was down 0.53 point. BHP Billiton, South32, Rio Tinto and Fortescue Metals Group all advanced. Banks were mixed with Commonwealth and NAB edging up 0 while ANZ and Westpac declined.
The Kospi climbed 0.9 percent on institutional buying in large-cap stocks ahead of national holidays. Markets will be closed from October 2 through October 9 for Chuseok and two other public holidays. The index was up 0.2 percent on the week and 1.3 percent in September.
The Sensex edged up 1.24 points and was down 2.0 on the week and 1.4 percent for the month of September. Investors were a cautious stance ahead of a long weekend. Markets will be closed on Monday for Mahatma Gandhi Jayanti.
Looking forward
Japan releases August household spending, retail sales, industrial production, unemployment and consumer prices data. Germany posts August retail sales and September unemployment. France releases consumption of manufactured goods. The UK posts its final estimate of gross domestic product. The Eurozone reports September flash harmonized index of consumer prices. In the US, August personal income and spending will be released along with final September 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]