On 10 December, 2015 – Stocks stabilized in the US

Stocks continued to retreat in Asia and Europe, but US stocks advanced for the first day this week.
United States
Stocks closed modestly higher as a rebound in the energy sector helped break a three day losing streak for the market. Oil and gas companies were up far more than the rest of the market. The Dow Jones industrials were up 0.5 percent, the S&P gained 0.2 percent and the Nasdaq added 0.4 percent.
Natural gas and coal producer Consol Energy jumped. Men’s Wearhouse plunged after the company reported earnings per share that were half what financial analysts expected. First Solar dropped after the company released earnings and a forecast that disappointed investors. Shares in Glencore rallied after the company said it was ahead of schedule in reducing debt thanks to asset sales, production cuts and cost reductions. ConocoPhillips gained after it said that estimated capital expenditures for next year would be $7.7 billion, a 25 percent decline from the reduced levels the oil major expects to spend for 2015.
Applications for unemployment benefits were up last week, but the number of Americans seeking aid remained close to historic lows. The Federal Reserve said that Americans’ stock and mutual fund portfolios plunged $2.3 trillion in the July to September quarter. That far outweighed a $482 billion increase in home values. Overall, household net worth fell to $85.2 trillion from $86.4 trillion in the second quarter.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$10.00 to US$1,071.00. Copper futures were up 0.1% to US$2.07. WTI spot crude was down 58 US cents to US$36.58. Dated Brent spot crude was down 54 US cents to US$39.57. The US dollar was up against the euro, yen, pound, Swiss franc and the Canadian dollar. However, it declined against Australian dollar. The Dollar Index was up 0.7 percent. The yield on US Treasury 30 year bond was unchanged at 2.97 percent while the yield on the 10 year note was up 2 basis points to 2.23 percent.
Europe
Stocks were mixed Thursday. Central banks were in focus today, with announcements from both the Bank of England and the Swiss National Bank. Energy and mining stocks struggled along with commodity prices once again. The FTSE was down 0.6 percent and the CAC was 0.1 percent lower. The DAX and SMI added 0.1 percent.
The Bank of England kept its policy interest rate at 0.5 percent and the ceiling of its asset purchase program at £375 billion. Once again, the monetary policy committee voted 8 to 1 to maintain its current policy. All members agreed that when Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles.
The Swiss National Bank on Thursday retained its key interest rates in negative territory and repeated that it will continue to be active in the forex market to weaken the ‘significantly overvalued’ Swiss franc. The interest rate on sight deposits at the SNB was maintained at minus 0.75 percent, and the target range for the three-month libor between minus 1.25 percent and minus 0.25 percent.
BMW advanced after reporting increased sales for November. Merck KGaA, which held its Capital Markets day, retreated. Aixtron plunged after it lowered its 2015 revenue outlook after trimming down its partnership with Chinese customer San’an Optoelectronics. In Paris, utility EDF gained after raising its earnings outlook. Technip increased after the company stated that there are no ongoing discussions about a potential sale or combination, refuting media reports that it has held advanced merger talks with U.S. peer FMC Technologies. In London, Sports Direct sank after reporting first-half results. TUI climbed after the travel operator reported full-year figures. Glencore jumped after increasing its debt reduction/capital preservation measures to $13 billion from the previous target of $10.2 billion.
Asia Pacific
Most Asian stock indices declined Thursday as investors wait for the Federal Reserve’s meeting next week. Also, the People’s Bank of China allowed the yuan to depreciate against the dollar for a fourth consecutive day, sparking fears of competitive devaluations across Asia.
The Shanghai Composite was down 0.5 percent, erasing early gains after the China Securities Regulatory Commission said it would push ahead with a long-awaited reform to let companies and investors have more say in new share offerings as early as May. The Hang Seng also lost 0.5 percent.
The Nikkei dropped 1.3 percent to hit five-week lows amid the sudden strength in the yen. Exporters including Panasonic, Honda Motor, Fanuc and Mazda Motor dropped after the yen rose the most in more than three months. Fast Retailing and Mitsubishi UFJ Financial Group also were lower. Toshiba gained on a Nikkei report that it plans to sell off TV businesses in some countries, including Indonesia.
Both the S&P/ASX and All Ordinaries lost 0.8 percent. Australia added an unusually high number of jobs for a second consecutive month in November and the unemployment rate fell to 5.8 percent, a 19-month low, surprising many economists and easing pressure on the Reserve Bank of Australia to reduce rates again. The big four banks declined. BHP Billiton and Rio Tinto advanced after their ADRs soared in New York trading overnight. Oil & gas producer Santos rose but Oil Search and Woodside Petroleum retreated.
The Kospi added 0.2 percent after the Bank of Korea kept rates unchanged for the sixth consecutive month. Local institutions bought shares as foreign investors extended their selling streak to a seventh straight session. The Sensex rallied 0.9 percent as hopes grow that crucial reform bills will be cleared in the ongoing winter session of Parliament, which ends on December 23.
Global Stock Markets

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 posts final consumer price index for November. Italy and India report October industrial production. In the US, November producer prices and retail sales along with October business inventories will be released. Preliminary December consumer sentiment also will be reported. China releases November retail sales and industrial production over the weekend.
*Note — all releases are listed in local time.