On 12 January, 2016 – Another day, another decline in oil prices

However, this time shares in Europe and the US rallied while those in Asia continued to retreat.
United States
US stocks averages gyrated throughout the trading session but managed to end the day firmly in positive territory. The Dow Jones industrials were up 0.7 percent, the S&P gained 0.8 percent and the Nasdaq added 1.0 percent. Tuesday’s volatility occurred as traders continued to keep an eye on developments in China, where authorities made an effort to stabilize the yuan following recent weakness. They were also keeping a close eye on the price of crude oil, which tested the $30 a barrel level but closed above it.
Shares of Apollo Education Group moved sharply higher amid reports Apollo Global Management is in talks to acquire the for-profit education company. Lululemon also posted a strong gain after raising its fourth quarter guidance on stronger than expected holiday sales. However, Alcoa came under pressure after it reported fourth quarter earnings that exceeded expectations, although its revenues came in slightly shy of estimates. The company also forecast record aluminum demand for the current year.
Natural gas stocks moved sharply lower on the day with Ultra Petroleum, Williams and Southwestern Energy posting steep losses. Intel and Apple advanced. UnitedHealth Group, Anthem and Aetna gained. Energy companies lagged the market as the price of crude oil fell to new 12-year lows. Freeport-McMoRan and Consol Energy retreated. Skullcandy plunged after the company slashed its 2015 sales projections and said holiday sales were worse than it expected.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$15.35 to US$1,085.40. Copper futures were down 0.7percent to US$1.96. WTI spot crude was down 78 US cents to US$30.63. Dated Brent spot crude was down 46 US cents to US$31.09. The US dollar was up against the pound, Swiss franc and the Canadian dollar. It was virtually unchanged against the euro, yen and Australian dollar. The Dollar Index was up 0.2 percent. The yield on US Treasury 30 year bond was down 9 basis points to 2.88 percent while the yield on the 10 year note declined 5 basis points to 2.12 percent.
Europe
Stock indices which have been under pressure for the last few sessions ended Tuesday’s session solidly in positive territory. However, the markets did finish off their session highs, as they pared early gains going into the close. The FTSE was up 1.0 percent, the CAC gained 1.5 percent, the DAX added 1.6 percent and the SMI was 1.4 percent higher.
Retailers were among the best performing stocks after positive sales data from Metro and Wm Morrison Supermarkets. Auto makers also turned in a strong performance after Peugeot reported sales results. Volkswagen, Daimler, BMW and Renault finished higher. In Paris, Peugeot climbed. The company said it sold 2.973 million vehicles worldwide in 2015, up 1.2 percent from last year. SAP increased after it reported preliminary results for the fourth quarter and full year 2015. Metro gained after the company reported that preliminary like-for-like sales for the first-quarter of 2015/16 advanced.
In London, Wm Morrison Supermarkets jumped on higher sales. Tesco and J Sainsbury gained. Burberry also finished higher. Department store group Debenhams surged after it said in its 19-week trading update, that group gross transaction value increased 2.5 percent, and group like-for-like sales were up 1.9 percent on a reported basis and 3.5 percent in constant currency. Meanwhile, staffing firm Michael Page declined. The company experienced tougher trading conditions in Asia Pacific and the UK in the fourth quarter.
UK industrial production declined at the fastest pace in almost three years in November as warm weather reduced energy demand. Industrial output slid unexpectedly by 0.7 percent on the month after remaining flat in October.
Asia Pacific
Most Asian shares fell Tuesday in cautious trading, as oil took another tumble and Chinese stocks gyrated before the release of December’s merchandise trade data. Energy and other commodity related stocks bore the brunt of the selling amid widespread weakness in commodity prices.
Chinese shares closed higher after fluctuating between gains and losses, as the People’s Bank of China stepped up efforts to stabilize yuan and China’s State Council reportedly established a new working group to coordinate between financial and economic regulators. The Shanghai Composite added 0.2 percent. Financial stocks rebounded after the PBoC said it plans to keep the yuan basically stable against a basket of currencies. The Hang Seng reversed earlier gains to close down 0.9 percent.
The Nikkei dropped 2.7 percent on speculation the government may raise sales tax next year unless a serious situation prevails. A fresh rout in oil prices and China-related worries also sapped investors’ appetite for risk as trading resumed following Monday’s holiday. Nikon, Canon, Panasonic and Sony dropped, hit by a strong yen. Fast Retailing and Softbank also retreated. Sharp retreated on a Nikkei report that the company may spin off its beleaguered LCD business and have a public/private fund take a majority stake in the remaining company. ANA Holdings slid after it agreed to purchase a stake in Vietnam Airlines. Oil stocks Inpex, Japan Petroleum and JX Holdings plummeted.
Australian shares extended losses for the eighth straight session despite China’s intervention to stabilize yuan. The S&P/ASX closed down 0.1 percent after rising as much as 1 percent in early trading. The All Ordinaries index eased 0.2 percent. While mining and energy stocks continued to be weighed down by lower commodity prices, some amount of buying was visible in banking stocks. Commonwealth and Westpac advanced. However, miners BHP Billiton, Rio Tinto and Fortescue Metals all tumbled. The Kospi slipped 0.2 percent while the Sensex lost 0.6 percent.
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*
China posts December merchandise trade. The Eurozone releases November industrial production. In the US, the Beige Book will be published by the Federal Reserve in preparation for the FOMC meeting on January 26 and 27.
*Note — all releases are listed in local time.