Investors were waiting for the latest economic data that will be released this week.
United States
Stocks were lackluster Friday closing mixed for the third straight day. The Dow Jones industrials slipped 2.53 points while the S&P added 0.2 percent and the Nasdaq was 0.5 percent higher. For the week, the Nasdaq gained 1.8 percent while the S&P edged up 0.2 percent and the Dow added10.48 points. Traders remained reluctant to make significant moves amid uncertainty about the near-term outlook for the markets.
Traders largely shrugged off a rebound in May new home sales — they climbed 2.9 percent to an annual rate of 610,000 from the upwardly revised April rate of 593,000. Traders also continued to digest the details of the Senate Republican plan to repeal and replace Obamacare.
Among individual stocks, shares of Synchronoss Technologies was higher after Siris Capital Group sent a letter indicating it could be a position to acquire the mobile technologies company for $18 per share. Repligen gained after announcing an agreement to acquire privately held filtration technology provider Spectrum for approximately $359 million in cash and stock. Bed Bath & Beyond fell sharply after the home goods retailer reported fiscal first quarter results that came in below expectations. QEP Resources, Southwestern Energy and Cabot Oil & Gas advanced thanks to a natural gas price increase. US Steel (X) and AK Steel both were higher on a broker upgrade.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$4.90 to US$1,255.70. Copper futures were up 0.9 percent to US$2.63. WTI spot crude was up 27 US cents to US$43.01. Dated Brent spot crude was up 32 US cents to US$45.54. The US dollar was down against the euro, pound, Swiss franc and the Australian dollar. The currency declined against the Canadian dollar and virtually unchanged against the yen. The Dollar Index was down 0.25 percent. The yield on US Treasury 30 year bond was unchanged at 2.72 percent while the yield on the 10 year note slipped 1 basis point to 2.14 percent.
Europe
Stocks were down across the board on Friday with energy shares remaining under pressure even though crude prices steadied for a second day. Investors were disappointed that the euro area private sector grew at the slowest pace in five months in June. Traders were also keeping a close eye on developments at the EU Summit in Brussels. The FTSE and SMI were down 0.2 percent, the CAC lost 0.3 percent and the DAX was 0.5 percent lower on the day. For the week, the FTSE was down 0.5 percent and the DAX retreated 0.2 percent. The CAC inched up 0.1 percent on the week while the SMI was 0.8 percent higher.
The European Central Bank sought more supervisory powers over clearing activities in a bid to secure control of the London-based euro clearing post-Brexit. The ECB’s governing council has recommended an amendment to Article 22 of the Statute of the European System of Central Banks and of the European Central Bank which would provide the ECB with a clear legal competence in the area of central clearing. This would pave the way for the Eurosystem to exercise the powers that are foreseen for central banks issuing a currency. Clearing activity has gained more significance during Brexit talks with the UK keen to retain the business in London. Meanwhile, European cities such as Frankfurt are eager to attract the firms who may leave Britain after Brexit.
Allianz slid after it was reported that the insurer was planning to cut 700 jobs in Germany over the next three years. Deutsche Bank dropped on a report that it has begun the process to sell its retail banking business in Spain. In London, Domino’s Pizza Group slumped on a broker downgrade. ITV jumped on a broker upgrade as did Centrica. Novartis slipped after rallying Thursday thanks to positive study results. Roche was unchanged. The company announced that new data for the treatment of multiple sclerosis showed a significant slowdown in disease progression. Nestlé retreated. Givaudan declined along with Lindt & Sprüngli. UBS and Credit Suisse were lower.
Eurozone private sector growth moderated in June from a six year high due to a slowdown in services activity. June flash PMI composite index reading declined to 55.7 from a six-year high of 56.8 in May. Both German and French composite indices also slipped. French GDP for the first quarter was revised upward to a quarterly gain of 0.5 percent from the previous 0.4 percent estimate.
Asia Pacific
Asian stocks were mixed Friday — the US dollar remained bolstered against the yen and crude oil prices pulled away from ten-month lows.
The Shanghai Composite added 0.3 percent as tight liquidity conditions eased and investors shrugged off news that the country’s banking regulator has ordered lenders to check exposure to rapidly growing firms. The Hang Seng was virtually unchanged (down 4.48 points). For the week, the Shanghai Composite was up 1.1 percent and the Hang Seng was 0.2 percent higher.
Both the Nikkei and Topix edged up 0.1 percent as a recovery in oil prices helped offset a firmer yen. According to the flash June manufacturing PMI, activity in Japan’s manufacturing sector continued to expand albeit at a slower pace with a reading of 52.0.
Both the S&P/ASX and All Ordinaries added 0.2 percent on the day. However, on the week, the S&P/ASX was down 1.0 percent and the All Ordinaries declined 0.9 percent. Financials ANZ, Commonwealth, NAB and Macquarie Group retreated after the South Australia government announced a new bank levy. Gains in commodity prices helped lift miners BHP Billiton and Rio Tinto. Mineral sands explorer Iluka Resources rallied after it decided to restart Jacinth-Ambrosia mine. CSL advanced after the US FDA approved its drug for hereditary angioedema.
The Kospi was up 0.3 percent Friday and 0.7 percent for the week. The gains were driven by institutional buying on expectations for strong second-quarter earnings. The Sensex declined 0.5 percent and was up 0.3 percent for the week.
Looking forward

The following indicators will be released this week…

Europe

June 25

Germany

Ifo Business Survey (June)

June 28

Eurozone

M3 Money Supply (May)

June 29

Eurozone

EC Consumer & Business Sentiment (June)

June 30

Eurozone

Harmonized Index of Consumer Prices (June flash)

Germany

Unemployment (June)

Retail Sales (May)

France

Consumption of Manufactured Goods (May)

Asia Pacific

June 29

Japan

Retail Sales (May)

June 30

Japan

Household Spending (May)

Consumer Price Index (May)

Unemployment (May)

Industrial Production (May)

China

CFLP Manufacturing PMI (June)

Americas

June 26

United States

Durable Goods Orders (May)

June 27

United States

S&P/Case Shiller House Price Index (April)

Consumer Confidence (June)

June 28

United States

International Trade in Goods (May)

Pending Home Sales (May)

June 29

United States

Gross Domestic Product (Q1.2017 final)

Initial Unemployment Claims (week ending prior Saturday)

June 30

Canada

Monthly GDP (April)

Industrial Product Price Index (May)

United States

Personal Income & Spending (May)

Consumer Sentiment (June final)

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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