Investors were waiting for the results of Sunday’s Italian referendum
United States
Energy stocks advanced along with the price of oil. Shares of Ford Motor and General Motors were higher after the automakers announced strong sales in November. Technology companies and high-dividend stocks declined.

Stocks traded with a lack of direction Friday and ended the day roughly flat. The Dow Jones industrials slipped 0.1 percent while the Nasdaq added 0.1 percent and the S&P was virtually unchanged (up 0.87 point). For the week, the Dow added 0.1 percent while the S&P and Nasdaq retreated 1.0 percent and 2.7 percent respectively. Reaction to the US employment report was muted.

The November employment report was released Friday with employment increasing an about expected 178,000 jobs. The unemployment rate declined to 4.6 percent from 4.9 percent the month before. The unexpected drop reflected in part a decline in labor force participation rate which edged down to 62.7 in November from 62.8. However, average hourly earnings slipped 0.1 percent on the month — a disappointment to those looking for an increase to reinforce inflation expectations.

Starbucks retreated after the company said Howard Schultz would step down as chief executive in April. The company’s president and chief operating officer, Kevin Johnson, will become chief executive. Smith & Wesson dropped after the company’s quarterly guidance disappointed investors. Discount retailer Five Below advanced after the company said it was off to a strong start this holiday season. That helped the stock rebound from losses over the last week. Also rising was Ascena Retail. Gap declined after the company reported weak sales in November. Workday tumbled after it said some customers had delayed completing large deals partly because of “global uncertainties such as Brexit, the U.S. presidential election and pending elections” in other industrialized countries. Charles Schwab and Citigroup declined as bank stocks moved lower. Also down were Goldman Sachs, Bank of America and Wells Fargo.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$11.65 to US$1,173.50. Copper futures were down 0.7 percent to US$2.63. WTI spot crude was up 62 US cents to US$51.68. Dated Brent spot crude was up 52 US cents to US$54.46. The US dollar was down against the yen, euro, pound, Swiss franc and the Canadian dollars. However, it advanced against the Australian dollar. The Dollar Index was down 0.3 percent. The yield on US Treasury 30 year bond was down 4 basis points to 3.06 percent while the yield on the 10 year note declined 6 basis points to 2.38 percent.
Europe
Although indices here pared early losses after the US employment report, they still were mostly lower on the day. The FTSE was down 0.3 percent, the CAC declined 0.7 percent and the DAX lost 0.2 percent. The SMI managed to edge up 0.1 percent. For the week, the FTSE lost 1.6 percent, the CAC declined 0.5 percent, the DAX retreated 1.7 percent and the SMI was 1.2 percent lower. Investors were cautious before the Italian constitutional referendum vote that takes place Sunday along with the elections in Austria.
Aixtron was down on a report that US President Barack Obama plans to block a Chinese company from buying the German chip equipment maker. CompuGroup Medical advanced after the medical software company decided to not continue its discussions over potential acquisition of Belgian graphics group Agfa-Gevaert. Banks including Commerzbank, Deutsche Bank, BNP Paribas, Société Générale and Crédit Agricole finished lower.
In London, Berkeley Group Holding advanced after the homebuilder reported better-than-expected first-half earnings and revenue despite uncertainty surrounding Brexit. Royal Bank of Scotland and Barclays retreated. Randgold Resources and Fresnillo gained as gold prices rebounded. Polymetal International also rose. Swiss Re was higher in Zurich after the reinsurer reiterated its commitment to achieve the individual Business Units’ return on equity and its two Group financial targets over the cycle. Imperial Brands was boosted by a broker upgrade.
In Switzerland, third quarter gross domestic product was unchanged from the previous quarter after expanding 0.6 percent in the second quarter as the strength in investment was offset by negative net trade.
Asia Pacific
Shares retreated Friday as the oil rally fizzled and rising US Treasury yields, reflecting expectations that inflation will accelerate in 2017, triggered fresh concerns about capital outflows from emerging markets. The US employment report was published after markets here were closed for the week. Investors were cautious prior to the vote on a constitutional referendum in Italy on December 4 and Austria’s presidential election also on Sunday.
The Shanghai Composite was down 0.9 percent as coking coal futures and construction product steel rebar tumbled after recent sharp gains. The Hang Seng lost 1.4 percent. For the week, the Shanghai Composite was down 0.6 percent and the Hang Seng was 0.7 percent lower.
The Nikkei declined 0.5 percent and the Topix was 0.4 percent lower as the US dollar pulled back against the yen in early trading and a monthly estimate from a think tank showed Japan’s GDP increased for a second straight month in October, led by increases in capital investment and exports. On the week, the Nikkei and Topix were up 0.2 percent and 0.9 percent respectively. DeNA slumped after the mobile internet company suspended most of its information websites following criticism that it provided medical information in an inappropriate manner. Nomura Holdings, Resona Holdings and Mitsubishi UFJ Financial climbed.
Both the S&P/ASX and All Ordinaries were down 1.0 percent as the bond rout deepened and oil prices surrendered some recent gains in Asian trading. Investors ignored upbeat data showing the third straight month of retail sales gains. On the week, both indices lost 1.2 percent. Miners BHP Billiton, Rio Tinto and Fortescue Metals along with Woodside Petroleum were lower. Evolution Mining and Regis Resources advanced as gold recovered from 10-month lows on a weaker US dollar.
The Kospi was down 0.7 percent on the day and 0.2 percent on the week. The Sensex dropped 1.2 percent Friday and retreated 0.3 percent on the week. 
Looking Forward

Central Bank activities

Dec 6

Australia

Reserve Bank of Australia Monetary Policy Announcement

Dec 7

Canada

Bank of Canada Monetary Policy Announcement

 

India

Reserve Bank of India Monetary Policy Announcement

Dec 8

Eurozone

European Central Bank Monetary Policy Announcement

The following indicators will be released this week…

Europe

Dec 5

Eurozone

Composite and Services PMI (November)

 

 

Retail Sales (October)

Germany

Composite and Services PMI (November)

France

Composite and Services PMI (November)

 

UK

Services PMI (November)

Dec 6

Eurozone

Gross Domestic Product (Q3.2016 final)

Germany

Manufacturing Orders (October)

Dec 6
Germany

Industrial Production (October)

France

Merchandise Trade Balance (October)

UK

Industrial Production (October)

 

Halifax House Price Index (November)

Germany

Merchandise Trade Balance (October)

Asia Pacific

Dec 5

Japan

Services PMI (November)

Dec 7
Australia

Gross Domestic Product (Q3.2016)

Dec 8
Japan

Gross Domestic Product (Q3.2016 second estimate)

 

Australia

Merchandise Trade Balance (October)

 

China

Merchandise Trade Balance (November)

Dec 9

China

Consumer Price Index (November)

Producer Price Index (November)

Americas

Dec 5

United States

ISM Nonmanufacturing Index (November)

Dec 6
Canada

International Trade (October)

 

United States

International Trade (October)

Factory Orders (October)

Dec 8

United States

Initial Unemployment Claims (week ending prior Saturday)

Dec 9
United States

Consumer Sentiment (December preliminary)

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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