On 28 March, 2016 – A lacklustre trading day.
With many markets closed for Easter Monday, trading was subdued as investors waited for the deluge of economic data later in the week.
United States
Stocks fluctuated between small gains and losses Monday in subdued trading. Energy companies were falling as oil prices declined, while media companies and other consumer stocks rose. The Dow Jones industrials and the S&P edged up 0.1 percent. However, Nasdaq slipped 0.1 percent.
The bidding for the Starwood Hotel chain continued as a group of investors led by China’s Anbang Insurance Group offered to buy the company for $88.66 a share or more than $15 billion. Starwood said the offer looks better than the latest bid from a rival, Marriott International. Starwood and Marriott both gained. Time Warner climbed after a strong opening weekend for “Batman vs. Superman: Dawn of Justice.” Despite weak reviews from critics, the movie brought in about $424 million worldwide. That was a good sign for Time Warner’s planned series of movies based on DC Comics characters. Noble Energy slumped after Israel’s Supreme Court struck down a deal that would have given Noble and other companies the right to start pumping natural gas from offshore deposits. Pandora was down after the streaming music company announced a management shake-up. Avon Products advanced after it said it reached a deal with activist investors that headed off a possible proxy fight.
Personal spending in February was up 0.1 percent while personal income was up 0.2 percent. February pending home sales jumped 3.5 percent.
These data reflect observations at 4:00 PM US ET. There was no gold fixing in London due to Easter Monday. Copper futures were up 0.6 percent to US$2.24. WTI spot crude was down 9 US cents to US$39.37. Dated Brent spot crude was down 18 US cents to US$40.26. The US dollar was down against the euro, pound, Swiss franc and the Canadian and Australian dollars. However, it advanced against the yen. The Dollar Index was down 0.5 percent. The yields on US Treasury 30 year bond and 10 year note were down 2 basis points to 2.65 percent and 1.88 percent respectively.
Europe
UK and European markets were closed for Easter Monday.
Asia Pacific
Asian shares closed mostly lower Monday as heightened expectations of another US interest rate increase in April tempered the initial optimism over higher oil prices and better than expected fourth quarter US GDP data. Trading volumes remained thin as markets in Australia, Hong Kong and New Zealand remained closed for the Easter Monday holiday.
The Shanghai Composite declined 0.7 percent, surrendering early gains. Losses in realty shares on reports of increased regulatory scrutiny of financing risk in the property market overshadowed initial optimism over the economy. Data released over the weekend showed that profits at Chinese industrial companies rose at their fastest pace in more than 18 months in the first two months of the year, despite weakening business conditions and slowing economic growth.
The Nikkei added 0.8 percent to hit a two week high as renewed weakness in the yen lifted shares of
export oriented companies. Mazda Motor, Nissan, Panasonic and Sony advanced as hawkish comments from Federal Reserve officials provided some support to the dollar against the yen. Sharp climbed after reports that a long-delayed takeover deal with Foxconn could materialize on March 31, a day after Hon Hai’s board meets. FamilyMart was up on a Nikkei report that the convenience store operator will work with the Japan Post group to provide shipping between the company’s domestic convenience stores and foreign destinations in Asia. Seven & I Holdings advanced after activist investor Daniel Loeb urged the board of the retailer to select its new chief executive based on shareholders’ interests.
Seoul shares erased early gains to end 0.1 percent lower on foreign fund selling amid uncertainty over Fed policy. The Sensex dropped 1.5 percent in the wake of hawkish comments from Federal Reserve policy makers and better than expected revised US GDP data. The monthly derivatives expiry slated for Thursday and caution ahead of RBI policy review due on April 5 also spurred risk aversion.
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*
Japan posts February unemployment, household spending and retail sales. The Eurozone releases February M3 money supply. In the US, March consumer confidence will be released. Fed Chair Janet Yellen speaks to the Economic Club of New York.
*Note — all releases are listed in local time.
Source: Fidelity
Fidelity disclaimer:
The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.
Jesmond Mizzi Financial Advisors Disclaimer:
This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]