On 06 December, 2016 – Global stocks advanced Tuesday

Investors were waiting for the ECB meeting scheduled for Thursday
United States
US stocks advanced Tuesday as telecom stalwarts AT&T and Verizon gained along with bank shares, helping the Dow Jones industrials set another record closing high. The Dow was up 0.2 percent, the S&P added 0.3 percent and the Nasdaq advanced 0.5 percent. Crude oil prices tumbled and traders expect a Federal Reserve rate increase next week.
McDonald’s was flat after it said it is looking to raise between $1 billion to $2 billion with the sale of its China and Hong Kong restaurants. However, the company plans to keep a “significant minority stake in the business,” according to a source cited by Reuters. Goldman Sachs Group, Bank of America and Citigroup advanced along with Verizon Communications. Verizon is selling 29 data centers to Equinix for $3.6 billion. AT&T gained after the company said its new streaming television service DirectTV Now has exceeded expectations so far. Nike declined on a broker downgrade.
October international trade deficit swelled to $42.6 billion from $36.2 billion in September. Exports declined 1.8 percent while imports were 1.3 percent higher. Factory orders jumped 2.7 percent in October.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$10.30 to US$1,172.50. Copper futures were down 1.0 percent to US$2.67. WTI spot crude was down US$1.05 to US$50.74. Dated Brent spot crude was down US$1.23 to US$53.71. The US dollar was up against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was up 0.4 percent. The yields on both US Treasury 30 year bond and the 10 year note were unchanged at 3.07 percent and 2.39 percent respectively.
Europe
Stocks advanced Tuesday after a weak start in choppy trading. Bank stocks rallied. Weak commodity prices had a negative impact on shares of energy, mining and resource stocks. Investors continue to monitor the latest developments in Italy after President Sergio Mattarella accepted Prime Minister Matteo Renzi’s resignation but asked him to remain in power until after the budget is passed. The FTSE was up 0.5 percent, the CAC gained 1.3 percent, the DAX advanced 0.8 percent and the SMI added 0.9 percent.
Deutsche Bank, Commerzbank, Société Générale, BNP Paribas and Crédit Agricole all posted hefty gains. E.ON and RWE advanced. In London, Wolseley gained after it said it expects fiscal year trading profit to be in line with expectations at current exchange rates. BHP Billiton retreated after it said it has submitted the winning bid to join with Mexican state oil company Petróleos Mexicanos in the Trion oil field in the Gulf of Mexico.
Drax Group surged after it agreed to acquire Opus Energy for £340 million. Imagination Technologies jumped after the company narrowed its first-half loss. Tullow Oil tumbled as oil prices fell on data showing a rise in crude output in virtually every major export region in November. HSBC increased after a broker upgrade. Royal Bank of Scotland and Barclays also were higher.
Eurozone third quarter gross domestic product expanded 0.3 percent on the quarter for a second quarter. Germany’s October factory orders grew at the fastest pace since July 2014 when orders soared 6.5 percent. Factory orders were up 4.9 percent on the month after declining a revised 0.3 percent decline in September.
Asia Pacific
Most Asian stocks advanced Tuesday. Investors turned from the Italian referendum result to the ECB meeting Thursday.
The Shanghai Composite retreated 0.2 percent on concerns surrounding a tighter regulatory environment, a day after Liu Shiyu, Chairman of the China Securities Regulatory Commission (CSRC), warned against “barbaric” share acquisitions. The China Insurance Regulatory Commission suspended Foresea Life Insurance from selling new life insurance policies and proposing new products, further denting investor sentiment. However, the Hang Seng was up 0.8 percent.
The Nikkei was up 0.5 percent and the Topix added 0.7 percent after the solid US gains overnight. Exporters Hitachi, Honda Motor, Mazda, Nissan, Sony and Panasonic climbed as the yen weakened driven by expectations that the Fed will raise rates next week. Financials and realty stocks also advanced, with Mitsubishi UFJ Financial, Mizuho Financial, Sumitomo Mitsui Financial, Nomura Holdings, Mitsubishi Estate and Mitsui Fudosan all gaining.
Both the S&P/ASX and All Ordinaries added 0.5 percent after the Reserve Bank of Australia left interest rates on hold at the historic low of 1.5 percent, as widely expected, saying any near-term slowing in economic growth is likely to be temporary. Miners BHP Billiton, Rio Tinto and Fortescue Metals rose after iron ore prices pushed back towards the two-year high reached recently. Origin Energy rallied after the energy giant said it would divest its New Zealand interests in the Kupe gas project and the Canterbury basin. Beach Energy advanced after signing a gas sales agreement with Adelaide Brighton Cement Limited.
The Kospi rallied 1.3 percent and the local currency strengthened against the US dollar as strong US data helped calm worries about instability in the European Union. The Sensex added 0.2 percent on expectations that the RBI will cut policy rates by at least 25 basis points when it meets Wednesday.
Looking Forward
The Reserve Bank of India publishes its monetary policy decision. Australia posts third quarter gross domestic product. Germany and the UK release October industrial production. The Bank of Canada publishes its monetary policy decision. In the US, October JOLTS and weekly petroleum status report will be released.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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