On 16 October, 2015 – Global markets ended the week on a mixed note

Stocks mostly advanced Friday but were mixed for the week. Investors focused on earnings reports and upcoming central bank meetings.
United States
Stocks traded with a lack of direction in early trading but rallied to end the session higher. The Dow Jones industrials and the S&P reached nearly two month closing highs while the Nasdaq rose to its best levels in a month. The Dow was up 0.4%, the S&P gained 0.5% and the Nasdaq added 0.3%. For the week, they were up 0.8%, 0.9% and 1.2% respectively. This was the third consecutive week that the indices have risen. The higher close seemed to reflect the recent upward momentum for the markets, with stocks continuing to recover from mid-August’s sell-off. The markets recently benefited from signs that the Federal Reserve will hold off on raising interest rates, although lingering concerns about the global economy have limited the upside.
September industrial production slipped 0.2% after edging down by a revised 0.1% in August. The modest decrease was primarily due to the steep drop in mining output. Preliminary October University of Michigan consumer sentiment rebounded to 92.1, up from September’s 87.2. Richard Curtin, the survey’s chief economist, said, “The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street.” Further he said “Importantly, the renewed confidence did not simply represent a relief rally, but instead reflected renewed optimism,” he added.
Mattel advanced even though the company reported weaker than expected third quarter results. Quanta Services dropped after the contracting services provider lowered its third quarter guidance. GE advanced hitting their highest level in seven years after the company reported better than expected earnings. Honeywell declined even though it beat profit estimates. Industrial tool maker Grainger slumped after results. Twitter was up after it was reported that former Microsoft Chief Executive Steve Ballmer owns a 4% stake in the company.
Gold at the afternoon London fixing was down US$3.40 to US$1,180.85. Copper futures were down 0.8% to US$240.35. WTI spot crude was up 88 US cents to US$47.26. Dated Brent spot crude was up 73 US cents to US$50.46. The US dollar was up against all of its major counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was up 0.4%. The yields on both the US Treasury 30 year bond and 10 year note were up 1 basis point to 2.88% and 2.03% respectively.
Europe
The European markets ended the week higher as the strong rally in the US on Thursday followed by the positive performance of the Asian markets translated into early strength in Europe. The FTSE was up 0.6% but still lost 0.6% for the week. The CAC was up 0.6% and was virtually unchanged on the week. The DAX however, was 0.4% higher Friday and inched up 0.1% from a week ago. The SMI was up 0.7% and 0.4%.
Healthcare and energy stocks were among the best performers Friday. Shares of Carrefour surged on sales data and Nestle pulled back on disappointing sales. Volkswagen declined after announcing recalls in Europe. Daimler and BMW also retreated. Hugo Boss cut its sales and earnings forecasts for 2015 citing weak third quarter sales in China and the US. RWE and E.ON gained. Commerzbank and Deutsche Bank increased. In Paris, Carrefour climbed after announcing sales data. However, Gucci owner Kering and luxury group LVMH dropped. In London, Rio Tinto weakened after it said that third quarter iron ore production advanced. However, quarterly total mined copper production decreased from last year to 115 million tons, primarily due to lower output at Kennecott Utah and Escondida mines.
AstraZeneca recovered from early losses and finished higher. The company received a complete response letter from the US FDA regarding combination of saxagliptin and dapagliflozin for the treatment of adult patients with type 2 diabetes. The letter states that more clinical data is required to support its new drug application. Nestle retreated in Zurich. The company reported lower net sales in its nine month period, affected by the withdrawal of Maggi noodles in India and slower than expected recovery in China. Nestle also cut its organic growth target. Burberry was among the worst performing stocks on the FTSE, falling again to extend the previous session’s slide, as a profit warning late on Thursday from Hugo Boss hit luxury goods companies.
Asia Pacific
Stocks here advanced Friday after US core inflation was up a better than expected 1.9% in September, dampening expectations for a delayed rate increase by the Federal Reserve. While US stocks posted strong gains overnight in the wake of upbeat inflation and jobless claims data, investors in Asia exercised some caution amid the recovery of the US dollar and weak oil prices.
The Shanghai Composite was up 1.6% (6.5% on the week) as encouraging bank lending data helped ease concerns about the economy. The Peoples Bank of China said Chinese banks issued 1.05 trillion yuan (US$165.4 billion) worth of new loans in September, up from 809.6 billion yuan in the previous month as authorities step up efforts to achieve the target of 7% GDP growth for 2015. The Hang Seng was up 0.8% and 2.7% from a week ago.
The Nikkei added 1.1% but slipped 0.8% on the week. Exporters edged higher amid a weaker yen. Investors are looking ahead to European Central Bank’s policy meeting on October 22, the FOMC meeting on October 27 to 28 and the Bank of Japan’s policy board meeting on October 30. After keeping its record stimulus unchanged in early October, the Bank of Japan is expected to take additional action at the end of the month. Canon, Honda Motor, Nikon and Sony advanced as did Fast Retailing and Softbank. Suntory Beverage & Food advanced on a Nikkei report that it will unwind its joint venture with Tsingtao Brewery in the wake of slowing sales and stiff competition in the Chinese market.
Both the S&P/ASX and All Ordinaries added 0.7% on the day. On the week, the former edged down 0.2% and the latter, 0.1%. Banks ANZ, NAB and Commonwealth rose on expectations that a severe drought from an intense El Nino weather pattern and tentative signs of some slowing in the Sydney and Melbourne housing markets, as indicated by the Financial Stability Review, may force the RBA to cut interest rates.
The Kospi slipped 0.1% on the day but gained 0.5% on the week. The Sensex added 0.8% on the day and 0.5% for the week.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Monday — China reports third quarter gross domestic product and September industrial production and retail sales. The US releases September’s housing market index.
Tuesday — Australia publishes minutes of its monetary policy meeting held earlier this month. Germany posts September producer prices. September housing starts will be reported in the US.
Wednesday — Japan posts September merchandise trade balance. The Bank of Canada announces its monetary policy decision and publishes its Monetary Policy Report.
Thursday — The UK posts September retail sales and the European Central Bank announces its monetary policy decision. In the US, September existing home sales and leading indicators along with the weekly jobless claims, money supply and fed balance sheet will be released.
Friday — October flash manufacturing PMI will be released for Japan and the US. Flash composite PMIs will be reported for the Eurozone, Germany and France. Canada posts September consumer prices.
*Note — all releases are listed in local time.