On 11 April, 2016 – Little new economic data to begin the week

Global stocks were mixed as investors waited for earnings season to begin.Global stocks were mixed as investors waited for earnings season to begin.
United States
Stocks retreated in late afternoon selling as investors waited for first quarter company earnings. The Dow Jones industrials were down 0.1 percent, the S&P declined 0.3 percent and the Nasdaq was 0.4 percent lower. Analysts expect a dismal profits season.
Hertz Global Holdings declined after the rental car company cut its full-year earnings forecast. The company said the car rental industry is suffering from too much capacity and competition. Avis also declined. Yahoo was up after news reports said The Daily Mail is interested in purchasing the company. The Daily Mail confirmed the reports on Monday. Newmont Mining climbed along with the price of gold. Freeport-McMoRan and Alcoa also gained.
Financial shares, the worst performing group in the S&P 500 in 2016, gained with JPMorgan Chase and Goldman Sachs Group climbing. Chesapeake Energy jumped after saying it has amended a $4 billion secured revolving credit facility agreement with its bank syndicate group that matures in 2019. Biotechnology companies slumped with Endo International and Insys Therapeutics tumbling. The latter posted preliminary revenue from its Subsys drug that trailed estimates, saying scrutiny around opioid addiction may have caused reluctance by health care providers in writing prescriptions.
Alcoa said that its sales and profits declined in the first quarter. The company posted a profit of $11 million in the first three months of 2016, down from $255 million in the same period in the year prior. Adjusting for one-time items earnings of 7 cents a share topped estimates for 2 cents. Sales fell 15 percent on a year ago basis to $4.95 billion.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$15.25 to US$1,254.75. Copper futures were down 0.1 percent to US$2.08. WTI spot crude was up 68 US cents to US$40.40. Dated Brent spot crude was up 91 US cents to US$42.85. The US dollar was down against the euro, pound, yen and the Canadian and Australian dollars. It was virtually unchanged against the Swiss franc. The Dollar Index was down 0.2 percent. The yield on US Treasury 30 year bond was up 1 basis point to 2.56 percent while the yield on the 10 year note was unchanged at 1.72 percent.
Europe
Stocks were mixed Monday with the FTSE and SMI retreating 0.1 percent and 0.8 percent respectively. However, the CAC and DAX added 0.2 percent and 0.6 percent on the day. The markets struggled early after the mixed performance of the Asian markets. Crude oil prices also played a role, as they levelled off around $40 per barrel.
There was very little global economic data to drive the direction of trading at the start of the new trading week. Investors were cautious ahead of Alcoa’s earnings report after US markets close for the unofficial kick off to the US earnings reporting season.
SAP slipped after pre-announcing its first-quarter results. Henkel advanced after it confirmed its forecast for fiscal 2016 and lifted dividends despite the high degree of uncertainty in markets. Commerzbank and Deutsche Bank advanced. In Paris, Crédit Agricole, BNP Paribas and Société Générale finished higher. In London, Standard Chartered advanced on a report that it has started a sale of around $4.4 billion Asian assets. Both Barclays and Royal Bank of Scotland gained. E.ON and RWE advanced. James Cropper jumped after the manufacturer of specialist paper and advanced materials said its full year results will materially exceed market expectations. Mining stocks Anglo American, Fresnillo, Glencore, BHP and Rio Tinto climbed on rising metal prices. Italian bank Monte dei Paschi along with UniCredit and Intesa Sanpaolo rallied on hopes the Italian government will soon set up a state-supported fund to buy bad loans.
In the UK, shares in housebuilders such as Berkeley Group, Barratt Developments, Taylor Wimpey and Persimmon retreated. Traders said the housebuilding and property sector were being hit by concerns about UK economic growth and a slowdown in the London prime property market, which could be exacerbated if Britain voted in June to leave the European Union.
Asia Pacific
Asian stocks were mixed Monday, with the Shanghai Composite increasing on signs of easing deflationary pressures in China while the Nikkei continued to feel the pressure of a stronger yen, which hit a fresh 17-month high against the US dollar.
The Shanghai Composite was up 1.6 percent while the Hang Seng added 0.3 percent. March consumer prices were up 2.3 percent on the year for a second month. Producer prices were down 4.3 percent after sinking 4.9 percent the month before. On a monthly basis, the PPI rose 0.5 percent, marking the index’s first increase since January 2014. The World Bank said that China will remain the main driver of growth in Asia this year despite its prolonged slowdown.
The Nikkei was down 0.4 percent as the dollar fell back to below 108 yen and data showed Japan’s core machinery orders declined 9.2 percent in February from the previous month. Automakers Honda Motor, Mazda, Nissan and Toyota were down. Shimachu, which operates a chain of stores selling hardware and home products, retreated after slashing its annual profit forecast. Yakult Honsha soared after announcing it would raise the prices of some popular home delivery products.
Both the S&P/ASX and All Ordinaries slipped 0.1 percent. Miners including BHP Billiton, Rio Tinto and Fortescue Metals Group rallied. Energy stocks Santos, Origin Energy and Oil Search also climbed after oil prices soared more than 6 percent on Friday. Westpac declined on reports over alleged rate rigging. NAB and Commonwealth also retreated.
The Kospi was 0.1 percent lower in cautious trade amid selling by foreign investors ahead of the IMF and G20 meetings in Washington DC this week. The Sensex jumped 1.4 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*
India posts March consumer prices and February industrial production. The UK releases March consumer and producer price indices. In the US, March import/export price indices will be released.
*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]