On 10 May, 2016 – Global stocks rallied

Oil prices boosted energy companies.
United States
US stocks climbed on Tuesday in a broad rally as investor sentiment toward risk assets brightened. Every major S&P 500 sector climbed on the day, with materials, industrials, energy and financials taking the lead. Defensive stocks like utilities and consumer staples logged the slimmest increases. The Dow Jones industrials and Nasdaq were up 1.3 percent while the S&P added 1.2 percent.
Oil prices were up on a combination of production interruptions in Canada and Nigeria sending energy companies including Hess and Exxon Mobil shares higher. Amazon rallied after it started a self-publishing video platform called Video Direct. Companies that make chemicals and other basic materials such as Dow Chemical and Martin Marietta Materials advanced. Allergan was higher after it said it would buy back up to $10 billion in stock with proceeds from the sale of its generic drug business, planned for later this year. Gap reported April sales that were far weaker than expected. The company forecast a smaller profit than expected and Gap said it was considering options for its overseas business.
SolarCity retreated after it reported a larger first quarter loss than expected and cut its annual projections. The company, a solar panel installer, said bookings were not as strong as expected and regulations held back its business. International Flavours & Fragrances, which makes ingredients for the food, cosmetics and consumer products industries, climbed after reporting strong results for the first quarter. Dun & Bradstreet gained after it posted a larger profit than expected. Dean Foods disclosed solid first quarter results and said it had bought the ice cream manufacturing and retailing business of Friendly’s Ice Cream for $155 million. Lumber Liquidators Holdings retreated after it reported a larger loss and weaker revenue than expected.
China’s cabinet approved measures to bolster exports as Beijing struggles to reduce gluts in many industries and reverse an export decline that threatens to cause job losses. The moves include more bank lending, greater tax rebates and support for export credits.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$2.45 to US$1,262.80. Copper futures were down 0.33 percent to US$2.10. WTI spot crude was up US$1.23 to US$44.67. Dated Brent spot crude was up US$1.96 to US$45.59. The US dollar was up against the yen, euro and Swiss franc. However, it declined against the pound and the Canadian and Australian dollars. The Dollar Index was up 0.15 percent. The yield on US Treasury 30 year bond was down 1 basis point to 2.61 percent while the yield on the 10 year note was unchanged at 1.75 percent.
Europe
European stock indices advanced Tuesday amid hopes for a resolution to the Greek debt crisis. There was little reaction to mixed economic news from the UK and Germany, with strength emerging among automotive and banking stocks. Energy stocks also rose. The FTSE and DAX were up 0.7 percent, the CAC gained 0.4 percent and the SMI jumped 1.4 percent.
Credit Suisse Group advanced after its chief executive officer announced plans to deepen cost cuts at the securities business after the Swiss bank posted a smaller than forecast quarterly loss. Volkswagen advanced on news it may soon announce a remedy to fix thousands of 3-liter diesel-powered vehicles in the US. ING climbed despite reporting a 29 percent fall in first quarter profit due to higher regulatory expenses. Pandora jumped after strong first quarter results.
Adecco retreated after the staffing agency said it is seeing increased uncertainty in the recruitment of highly skilled people in finance in the lead up to next month’s referendum on European Union membership. Nokia was down after it posted a surprise net loss of €513 million in the first quarter. Air France KLM rallied after it reported a 1.5 percent rise in its April traffic. Natixis slumped after reporting a 30 percent fall in first quarter net income due to weakness in its investment banking division. ThyssenKrupp was lower after posting a half-year loss and lowering its full-year forecasts. Anglo American rebounded following its plunge on Monday. BHP Billiton also gained. Standard Chartered and Barclays advanced. EasyJet climbed after predicting that European demand for air travel will return.
March German industrial output dropped a greater than expected 1.3 percent on the month and was up 0.2 percent when compared with the same month a year ago. The seasonally adjusted March merchandise trade balance returned a record surplus of €23.7 billion, up from a larger revised €20.0 billion in February. March French industrial output was down 0.3 percent on the month and 0.8 percent from a year ago. The UK’s merchandise deficit narrowed to £11.20 billion in March from a revised £11.96 billion deficit in February.
Asia Pacific
Most Asian stock indices ended Tuesday higher after oil prices steadied after steep losses overnight on expectations of a U.S. inventory build and easing concerns over Canadian oil supply disruptions. Steady Chinese inflation numbers also offered some support.
The Shanghai Composite was virtually unchanged (up 0.48 point) after swinging between gains and losses while the Hang Seng added 0.4 percent. April consumer prices were up 2.3 percent on the year for the second month while producer prices continued to decline but at a slower rate in a sign of improved aggregate demand. The producer price index was down 3.4 percent from a year earlier after sliding 4.3 percent in March.
The Nikkei added 2.2 percent after Finance Minister Taro Aso reiterated that authorities will intervene in the currency market to prevent “one-sided” moves of the yen. Exporters Canon, Mazda Motor, Nissan, Sony and Panasonic jumped after the dollar rose. Hoya gained after posting record profit and sales for the fiscal year ended March. Airbag manufacturer Takata tumbled after warning it would post an annual net loss for the past business year.
The S&P/ASX added 0.4 percent and the All Ordinaries were 0.3 percent higher. ANZ, Commonwealth, NAB and Westpac advanced. Incitec Pivot jumped as the fertilizer firm maintained dividends despite posting an almost 80 percent fall in first-half profit. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group retreated after iron ore prices fell overnight on concerns that a supply glut could worsen.
The Kospi was up 0.7 percent after investors went bargain hunting in pharma and auto shares. The Sensex added 0.3 percent as oil prices traded higher after steep overnight losses and a report showed Chinese consumer prices held steady in April, giving the country’s central bank more leeway to ease its monetary policy.
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*
UK posts March industrial production. In the US, weekly mortgage applications and the EIA petroleum status report will be released along with the April Treasury Budget.
*Note — all releases are listed in local time.

Source: Fidelity

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