Market update: Trading subdued ahead of US holiday; mixed performance in asset classes – 27.11.2013

Source: Henderson Global Investors

Trading in US financial markets was subdued on Tuesday ahead of the Thanksgiving holiday tomorrow. It was a flat finish for the Dow Jones and the S&P 500 stock indices, but gains in the technology sector helped the Nasdaq composite close above the 4,000 level for the first time in 13 years (up 0.6% at 4017.8). Consumer discretionary and industrials also finished in positive territory. Robust housing market data supported sentiment. Building permits in September were better than expected while the Case Shiller home price index rose above consensus. A $35bn auction of 5-year US Treasury notes was well received as investors continued their search for yield.

In the Asian overnight trading session, China’s stock markets shrugged off geopolitical concerns regarding a territorial dispute with Japan. The Shanghai Composite closed up 0.8%, while the Hang Seng rose 0.5%. Japan’s Nikkei 225 pulled back from a six-month high, dipping 0.4% on the day. Dragging on the Nikkei was a bout of profit taking in heavyweight Softbank’s shares, which fell 2.8%. European trading this morning is lacking conviction given the upcoming holiday in the US and expected data to flow on consumer confidence (US and Germany) and durable goods orders (US) later today. Both the FTSE Eurofirst 300 and FTSE 100 indices edged up 0.2% at the time of writing.