On 12 November, 2015 – European markets fell as eurozone industrial production declined

Global stocks were mostly lower, dragged down by energy stocks introductory welcoming remarks by Fed Chair Janet Yellen comments by other FOMC members hinting at an interest rate increase in December.
United States
Stocks declined Thursday, weighed down by weakness in mining and energy companies as commodity prices fell. It was their sixth decline in seven days. The Dow Jones industrials and S&P both lost 11.4% while Nasdaq retreated 1.2%.
The European Central Bank and the Bank of Japan are both hinting that they will step up stimulus measures. That could make the dollar even stronger compared with the euro and yen. When the dollar appreciates it tends to send prices for oil, copper and other commodities, which are priced in dollars, lower. That is because buyers aren’t willing to pay higher prices in their own currency just because the dollar has appreciated.
Prices for copper and other commodities slumped as investors anticipated that the US dollar would become even stronger. Copper producer Freeport-McMoRan dropped on the day as did Dow Chemical. Kohl’s climbed after the company said strong sales in the back to school season and in late October bolstered its results in the third quarter. Kohl’s and other retailers tumbled on Wednesday after a disappointing report from Macy’s. Kohl’s more than made up its losses, while competitors made partial recoveries. JC Penney and Nordstrom also rallied. Freshpet, which sells refrigerated fresh pet food, tumbled after reporting its third quarter results. The company said growth in fridges was lower than it expected and manufacturing problems hurt its profits. PayPal was down after the Wall Street Journal reported Apple is in talks with US banks to develop a rival payment service. Apple was flat.
Federal Reserve officials today stressed that policy should be tightened only gradually after interest rates are increased for the first time in almost a decade with New York Fed President William Dudley saying the conditions for liftoff “could soon be satisfied.” In addition to Dudley’s comments, Fed Bank of St. Louis President James Bullard said the Fed should raise interest rates from near zero because emergency policies are not needed now with the labor market and inflation nearing the central bank’s goals. Fed Bank of Chicago President Charles Evans said regardless of when it begins raising rates, the Fed must be clear that the pace of future increases will be gradual.
After markets closed, Cisco Systems said its quarterly revenue rose 3.6% as demand rose for its high-end switching equipment and data center services. Net income rose to US$2.43 billion or 48 US cents per share in the first quarter ended October 24, from US$1.83 billion, or 35 US cents per share a year earlier. Revenue rose to US$12.68 billion from US$12.25 billion a year earlier.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$1.50 to US$1,087.40. Copper futures were down 2.5% to US$2.16. WTI spot crude was down US$1.35 to US$41.58. Dated Brent spot crude was down US$1.70 to US$44.11. The US dollar was down against the euro, yen, pound, Swiss franc and the Australian dollar. However, it edged up against the Canadian dollar. The Dollar Index was down 0.3%. The yields on both the US Treasury 30 year bond and 10 year note slipped 1 basis point to 3.09% and 2.32% respectively.
Europe
Stocks dropped Thursday after Eurozone industrial production declined. Energy stocks were under pressure as well due to falling crude oil prices. Aerospace companies were weak after a profit warning from Rolls-Royce. Mining stocks were down again, amid falling prices for precious metals. Both the FTSE and CAC dropped 1.9%, the DAX retreated 1.1% and the SMI declined 0.8%.
In his testimony to the European Parliament’s Economic and Monetary Affairs Committee in Brussels, European Central Bank President Mario Draghi said that the Bank will re-examine the degree of monetary policy accommodation at the December meeting. He said that the governing council will closely monitor the risks to price stability and thoroughly assess the strength and persistence of the factors that are slowing the return of inflation to levels below, but close to, 2%. While the euro area economic recovery is progressing moderately, the return of inflation is likely to take more time than expected earlier.
RWE plunged after it announced financial results. E.ON also retreated. Siemens advanced after saying that fourth quarter earnings per share were €1.18, down 32% from €1.72 a year ago. The company expects growth in earnings, revenues and orders in fiscal 2016. Both Commerzbank and Deutsche Bank were lower. Airbus declined as did LVMH and Kering. Rolls Royce plunged after a profit warning. Meggitt also weakened. Mining stocks remained under pressure, as precious metal prices continue to fall. Anglo American, Glencore, Antofagasta and BHP Billiton declined. BAE Systems gained 3 after raising its forecast slightly. Burberry was down amid profit growth in the first half of the year.
Eurozone’s September industrial production excluding construction was down 0.3% on the month after declining 0.4% in August and was up 1.2% from a year ago.
Asia Pacific
Stock indices were mixed with Australian, Chinese, Japanese and South Korean markets advancing, while the rest of the major markets in the region moved to the downside. The Indian market was closed for a public holiday.
The Nikkei edged up 0.1% as the yen remained subdued in the upper 122 level against the US dollar. Construction, food, real estate, heavy machinery and textile stocks moved to the upside but rubber, mining and paper stocks lost ground in the session. Pharma, retail utility, export and chemical stocks ended mixed.
The Shanghai Composite retreated 0.3% and the Hang Seng lost 0.2%. October data for industrial production and retail sales were released. On the year, industrial production was up 5.6% after increasing 5.7% in September. Analysts expected an increase of 5.8%. At the same time, retail sales were up 11.0% after 10.9% last time. Retail sales were slightly above expectations of 10.9%.
Singles’ Day, a spree of promotions for online sales held annually on November 11, is similar to Cyber Monday in the US. E-commerce giant Alibaba Group Holding started the day of shopping in 2009 to entice single people to buy things to pamper themselves. Today, most major e-commerce websites participate by offering deep discounts appealing to all shoppers.
Both the S&P/ASX and All Ordinaries were up 0.5%. Most sectors advanced, led by healthcare stocks, while material stocks came under selling pressure. Baby formula maker Bellamy’s Australia rallied this week amid expectations of increased shipping for Single’s Day. Blackmores, which makes vitamins, gained after the firm cited strong Chinese sales in its latest earnings report. The company also said it would start selling baby formula to China.
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*
Germany, France, Italy and the Eurozone post flash third quarter gross domestic product. The Eurozone also posts September merchandise trade. The US releases October producer prices and retail sales, September business inventories and November preliminary consumer sentiment.
*Note — all releases are listed in local time.