On 08 November, 2016 – Global stocks advanced
Investors waited quietly for the results of the US presidential election.
United States
Stocks advanced after hesitating during morning trading. However, shares gathered strength as the day progressed with the Dow Jones industrials and the S&P up 0.4 percent and the Nasdaq 0.5 percent higher. At this writing (4:00 PM US ET), Americans are still voting in the presidential election and results will not be known until several hours from now. In recent days, stocks gyrated after polling results favouring one candidate or the other were announced.
Priceline Group advanced after reporting improved quarterly results. Freeport-McMoRan rallied. Marriott International gained after the company posted a big increase in earnings and revenue for the most recent quarter. SeaWorld Entertainment rose after the company said it had been able to stem falling attendance after a bruising fight with animal rights activists that led to the closure of its orca breeding program.
Hertz plunged after the company’s latest quarterly earnings came up far short of what had been anticipated. CVS Health tumbled after the company’s third-quarter revenue fell short of expectations. Depomed sank after the company reported lower-than-anticipated quarterly earnings. Valeant Pharmaceuticals International tumbled after the company reported a third-quarter loss. The company also cut its guidance as it continued to face scrutiny over its business practices.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down 70 US cents to US$1,282.35. Copper futures were up 2.9 percent to US$2.38. WTI spot crude was down 14 US cents to US$44.75. Dated Brent spot crude was down 35 US cents to US$45.80. The US dollar was up against the yen, euro, pound, Swiss franc and yuan. The currency was lower against the Canadian and Australian dollars. The Dollar Index was up 0.2 percent. The yield on US Treasury 30 year bond was up 3 basis points to 2.63 percent while the yield on the 10 year note was up 4 basis points to 1.87 percent.
Europe
Stocks advanced as investors exercised caution prior to the US presidential election results. The FTSE was up 0.5 percent, the CAC gained 0.4 percent, the DAX advanced 0.2 percent and the SMI edged up 0.1 percent.
Deutsche Post climbed after reporting a jump in third quarter profit and reaffirming its FY16 outlook. Volkswagen slipped after regulators in California found emissions-cheating software in some of the company’s Audi models. Henkel gained after its third-quarter profit beat analyst estimates. In Paris, Crédit Agricole rallied after its third quarter profit doubled, lifted by fixed-income revenue and the sale of its holding in the group’s regional lenders.
Associated British Foods shares jumped after it reported higher full year revenue and said it expects continued profit growth in its current financial year despite a weaker British currency hurting margins at its UK stores. Imperial Brands was lower after reporting a decline in full-year net profit. Marks & Spencer Group dropped after the retailer unveiled plans to close 60 stores in Britain and retreat from 10 countries as part of a sweeping restructuring plan. Adecco Group slipped in Zurich after the staffing firm delivered another solid performance for the third quarter.
Germany’s September industrial production dropped 1.8 percent on the month after jumping a revised 3.0 percent in August. Exports declined 0.7 percent in September on the month after increasing 3.4 percent in August. Imports were down 0.5 percent following a 1.9 percent rise in August. The trade surplus was €21.3 billion. UK September industrial output declined 0.4 percent on the month for a second month.
Asia Pacific
Asian stocks advanced in cautious trading before the US presidential election results are known.
The Shanghai Composite was up 0.5 percent after investors shrugged off weak merchandise trade data. The Hang Seng also was up 0.5 percent. The October merchandise trade surplus was US$49.1 billion. Exports dropped for the seventh consecutive month — down 7.3 percent on the year in US dollar terms while imports was 1.4 percent lower.
The Nikkei was virtually unchanged (down 5.83 points) while the Topix inched up 0.1 percent. Honda, Mazda and Toyota gained. Nikon was higher on a Nikkei report that it plans to eliminate about 1,000 jobs in Japan. Toyota Motor lifted its profit forecast for the fiscal year despite reporting another sharp decline in second-quarter net profit. Nissan Motor also gained after maintaining its full-year sales guidance. Softbank Corp advanced despite announcing a $550 million write down in its Indian investment.
The S&P/ASX was up 0.1 percent and the All Ordinaries added 0.2 percent despite mixed readings on business and consumer confidence. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group climbed thanks to higher steel and iron ore futures in China. Energy major Santos jumped after US crude oil futures climbed overnight. News Corp advanced after reporting fiscal first-quarter results in line with estimates. Fairfax Media and APN News & Media also gained. Gold miners Newcrest, Northern Star and Regis Resources retreated after gold futures declined on Monday. Commonwealth Bank of Australia was lower after reporting flat first-quarter unaudited cash earnings.
The Kospi was up 0.3 percent while the Sensex added 0.5 percent.
Looking Forward
China reports October consumer and producer price indices. The UK releases September merchandise trade data. The US posts September wholesale trade and the weekly EIA petroleum status report.
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
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