On 04 July, 2016 – Global markets were mixed
US markets were closed yesterday for Independence Day. European markets were weighed down by Italian banks, while hopes of easing measures by global central banks supported Asian stocks.
Europe
Stocks in Europe slipped Monday, as losses at Italian banks weighed on the market. The Stoxx Europe 600 and Germany’s DAX 30 both fell 0.7%, while France’s CAC 40 lost 0.9% and the UK’s FTSE 100 dropped 0.8%.
Shares in Italy’s Banca Monte dei Paschi di Siena plummeted on reports that the European Central Bank is pushing the lender to draft a new plan aimed at reducing non-performing loans. Shares in other Italian banks, including Banca Popolare dell’Emilia Romagna, Intesa Sanpaolo and Banca Popolare di Milano also declined.
Meanwhile, shares in Volkswagen fell as the German auto maker rejected demands that it pay compensation to European car owners who bought tainted diesel vehicles. Retailer Marks & Spencer also declined following a ratings downgrade. Among the gainers, RWE rose as the German utility signed a deal for Qatargas to deliver up to 1.1 million tonnes of liquefied natural gas a year to RWE Supply & Trading in northwest Europe. Shares in miner Fresnillo rose in line with gold and silver prices.
On the economic front, data showed a contraction in monthly UK construction activity, which weighed on housing stocks.
Asia Pacific
Shares in Asia rose as investors were confident that global central banks would introduce easing measures to encourage economic growth. Japan’s Nikkei Stock Average ended 0.6% higher, Australia’s S&P/ASX 200 rose 0.7% and Korea’s Kospi gained 0.4%. Hong Kong’s Hang Seng Index rallied 1.3% and China’s Shanghai Composite Index gained 1.9%. In China, at least a dozen stocks, including Inner Mongolia Xingye Mining and nonferrous metals producer Shenzhen Zhongjin Lingnan Nonfemet surged, hitting their daily price-movement limit.
In Hong Kong, property stocks that were perceived to be undervalued led gains. Investors focused on a report from Daiwa Capital Markets that argued that shares of Hong Kong-focused real-estate developers are collectively worth $200 billion more than they are priced by the market. As a result, Hong Kong’s largest home builder by market cap, Sun Hung Kai Properties and Cheung Kong Property Holdings advanced strongly.
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*
Central Bank activities
July 5
Australia
Reserve Bank of Australia Monetary Policy Announcement
The following indicators will be released today…
Europe
July 5
Eurozone
Services & Composite PMI (June)
Eurozone
Retail Sales (May)
Germany
Services & Composite PMI (June)
France
Services & Composite PMI (June)
UK
Services PMI (June)
Asia/Pacific
July 5
Australia
Retail Sales (May)
Merchandise Trade (May)
Americas
July 5
United States
Factory Orders (May)
*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]