On 14 September, 2016 – Global stock indices mostly lower

Investors continue to fret over possible future interest rate increases.
United States
US shares steadied Wednesday, wavering between gains and losses. At market close, the Dow Jones industrials were down 0.2 percent and the S&P slipped 0.1 percent. However, Nasdaq advanced 0.4 percent thanks to a surging Apple that led other technology stocks higher. However, energy companies were lower as the price of oil continued to slip. Trading was fairly calm after three volatile days.
Consolidated Edison and Duke Energy were higher. Chevron and Marathon Oil retreated. Apple rallied for a second day of big gains. Apple shares rose on Tuesday after T-Mobile said it was getting strong preorders for the new iPhones. Salesforce.com gained. Ford Motor was down after the company said its pretax profit would fall this year. Ford also forecast weaker results in 2017 as the company invests more money in areas such as electric and autonomous cars. The automaker said it expected results to start improving in 2018.
Vitae Pharmaceuticals soared after it agreed to be bought by Allergan, the maker of Botox. The deal values Vitae at $21 per share or $606 million. Nucor stumbled after it forecast a smaller profit than expected for the third quarter. Nucor said it expected to earn 85 US cents to 95 US cents per share. Cracker Barrel Old Country Store declined after investors were disappointed with the restaurant chain’s projections for the current fiscal year.
After four months of public negotiations, Monsanto agreed to be bought by the German drug and farm chemical company Bayer. Bayer’s latest offer is worth about $57 billion in cash. Bayer makes a wide range of crop protection chemicals that kill weeds, bugs and fungus while Monsanto is known for its seeds business and the weed killer Glyphosate. Both Bayer and Monsanto shares advanced.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$1.90 to US$1,321.75. Copper futures were up 2.5 percent to US$2.15. WTI spot crude was down US$1.20 to US$43.70. Dated Brent spot crude was down US$1.09 to US$46.01. The US dollar was down against the yen, euro, pound, Swiss franc and the Australian dollar. However, it advanced against the Canadian dollar. The Dollar Index was down 0.3 percent. The yield on US Treasury 30 year bond was unchanged at 2.45 percent while the yield on the 10 year note slipped 1 basis point to 1.70 percent.
Europe
Shares were mostly lower Wednesday with only the FTSE edging upward. The markets fluctuated between gains and losses over the course of the day in choppy trading. Traders were cautious before Thursday’s Bank of England meeting. The uncertain outlook for US interest rates also continued to weigh on investor sentiment. The FTSE inched 0.1 percent higher while the CAC declined 0.4 percent and the DAX and SMI were 0.1 percent lower.
Luxury goods companies were under pressure after profit warnings from both Hermes and Richemont. Gold and mining stocks did better thanks to rising prices for precious metals and the safe haven appeal of gold.
Bayer climbed after it announced a deal to acquire Monsanto. In Paris, Hermes International sank after it reported solid first half earnings but warned it expects lower earnings in the second half. LVMH, Kering and Burberry also retreated. In London, Galliford Try surged after the homebuilder boosted its dividend after reporting a record annual profit fueled by strong growth across the group. Compass Group advanced on a broker upgrade. Miners Glencore, Anglo American, Antofagasta, BHP Billiton and Randgold Resources advanced. Richemont dropped in Zurich after it warned its first-half operating profit will probably be 45 percent below last year.
July Eurozone industrial production fell for the first time in four months. Output declined 0.5 percent on the year after a 0.7 percent gain in June. The British unemployment rate held steady in July, while claimant count rose more-than-expected in August — but not enough to alter its 2.2 percent unemployment rate. The ILO jobless rate was 4.9 percent, unchanged from the three months to June.
Asia Pacific
Most Asian stock indices declined Wednesday after US shares tumbled overnight thanks to a decline in oil prices and rising bond yields on doubts over central banks’ willingness or ability to boost growth through ultra-easy monetary policies.
The Nikkei lost 0.7 percent. The index was dragged down by banks after the Nikkei reported that the Bank of Japan plans to make its controversial negative interest rate policy the centerpiece of future monetary easing. Banks Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Financial dropped. Also declining were Sumitomo Chemical, Toshiba, Mitsumi Electric, Mitsubishi Motors, Mitsui OSK Lines, Nippon Yusen KK and Pioneer.
The S&P/ASX was up 0.4 percent while the All Ordinaries added 0.3 percent. The big banks rose after a report said that Australian consumer confidence rose for a second consecutive month in September following the federal election. Platinum Investment Management jumped after the fund manager announced it would buy back up to 10 percent of its outstanding shares on the open market. Origin Energy, Beach Energy and Santos retreated after oil prices fell overnight in reaction to a monthly OPEC report and the IEA’s warning of slowing oil demand. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group were lower.
The Shanghai Composite declined 0.7 percent after the overnight Hong Kong Interbank Offered Rate for offshore yuan surged to a fresh seven month high. The Hang Seng slipped 0.1 percent. South Korean markets were closed for a national holiday. The Sensex added 0.1 percent.
Looking Forward
Australia posts its August labour force survey. The Swiss National Bank publishes its quarterly monetary policy assessment. The Bank of England announces its monetary policy decision and publishes minutes of its monetary policy committee meeting. The UK releases August retail sales. The Eurozone reports final August harmonized index of consumer prices.
In the US, August producer prices and retail sales along with September Philadelphia Fed and Empire Stat manufacturing surveys will be released. Second quarter current account, August industrial production and July business inventories along with weekly jobless claims, Fed balance sheet and money supply will also be reported.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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