Asian and European share indices were mixed while the US stocks rallied

  • 15 Aug 2018

    Asian and European share indices were mixed while the US stocks rallied

    US stocks rebounded from Monday’s losses as the global fears raised by the spectre of a currency meltdown in Turkey started to cool. The Dow Jones industrials were up 0.4 percent, the S&P added 0.6 percent and the Nasdaq was 0.7 percent higher. Both the S&P and Dow snapped four session losing streaks.

    US markets

    US stocks rebounded from Monday losses as the global fears raised by the spectre of a currency meltdown in Turkey started to cool. The Dow Jones industrials were up 0.4 percent, the S&P added 0.6 percent and the Nasdaq was 0.7 percent higher. Both the S&P and Dow snapped four session losing streaks.

    Consumer non-cyclicals advanced including fashion brand Tapestry after a strong set of earnings, helping to lift retailers including Gap, Macy and Victoria Secret parent company L Brands. Home Depot reported second quarter results that exceeded expectations and raised its full-year guidance. Lowe also was higher. Citigroup, JPMorgan Chase, Wells Fargo, Bank of America and Goldman Sachs Group all advanced.

    Tesla declined after the electric automaker named a three-person committee to negotiate taking the company private, but said it had yet to see a firm offer from CEO Elon Musk. Advance Auto Parts reached a one-year high after beating quarterly profit estimates and announcing a new share buy-back program.

    These data reflect observations at 4:00 PM US ET. Gold was up US$2.50 to US$1,201.40. Copper futures were down 1.61 percent to US$2.69. WTI spot crude was down 49 US cents to US$66.71. Dated Brent spot crude was down 41 US cents at US$72.20. The US dollar was down against the yen and Canadian dollar. It advanced against the euro, pound, Swiss franc and the Australian dollar. The Dollar Index was up 0.4 percent. The yields on both the US Treasury 30 year bond and 10 year note were up 2 basis points to 3.06 percent and 2.89 percent respectively.

    European markets

    European stock indices were mostly lower Tuesday after initially increasing in morning trading. The markets ended with mixed results after a late recovery was fueled by an uptick in the U.S. markets. The positive early gains were fueled by the latest batch of European economic data and an easing of concerns over the currency crisis in Turkey. The FTSE was down 0.4 percent and the CAC retreated 0.2 percent. The DAX added 0.13 point and the SMI was 0.1 percent higher.

    RWE rallied after its first-half core profit matched expectations. Bilfinger rose after the firm reported a rise in second quarter net profit and reaffirmed its outlook for 2018. Antofagasta tumbled after its first-half earnings fell 16 percent from last year. Cr嶮it Suisse Group finished lower on a report that it is breaking up its international wealth-management unit into seven regions from four.

    Straumann jumped after the company raised its full-year revenue target. Swiss Life slid after the company reported results for the first half of the year and appointed a new CFO. Roche and Nestle climbed while Novartis retreated. Miners including Fresnillo, Rio Tinto and Glencore declined. BHP advanced after the union at its Escondida copper mine in Chile called off a strike planned to start on Tuesday.

    The Eurozone flash second quarter gross domestic product was up a quarterly 0.4 percent and 2.2 percent from a year ago. Germany flash second quarter GDP was up a quarterly 0.5 percent and 2.0 percent on the year. The ZEW Indicator of Economic Sentiment climbed to minus 13.7 in August from minus 24.7 in July.

    Germany July consumer price index was up 2.0 percent on the year while in France, the CPI was up 2.3 percent on the year. French second quarter unemployment rate in metropolitan France dropped to 8.7 percent from 8.9 percent in the first quarter. In the UK, the ILO jobless rate showed joblessness declining a sizeable 65,000 in the second quarter. The ILO jobless rate was 4.0 percent ?the lowest since February 1975. The rate was expected to remain unchanged at 4.2 percent.

    Asia Pacific Markets

    Asian shares were mixed Tuesday ?Chinese data disappointed and worries about Turkey eased slightly after the country's central bank announced a raft of measures aimed at soothing markets.

    The Shanghai Composite was down 0.2 percent after a slew of Chinese data on industrial output, retail sales and fixed asset investment came in below expectations. The Hang Seng closed 0.7 percent. July retail sales were up 8.8 percent when compared with a year ago, down from June 9.0 percent. Industrial production advanced an annual 6.0 percent, unchanged from June. Fixed asset investment grew 5.5 percent from a year earlier after increasing 6.0 percent the month before. .

    The Nikkei and Topix jumped 2.3 percent and 1.6 percent after Turkey's central bank pledged to provide liquidity and cut reserve requirements for banks. Exporters led the surge, with Toyota, Panasonic, Canon, Honda Motor and Sony climbing. Softbank rallied on a report that the company is in talks to invest up to $750 million in Zume ?a startup that makes fresh pizzas with the aid of robots.

    The S&P/ASX advanced 0.8 percent while the All Ordinaries ended up 0.7 percent at 6,386.20. Higher Dalian iron ore prices boosted miners, with BHP Billiton advancing. Shares of Whitehaven Coal advanced after the miner reported a nearly 30 percent increase in full-year profit on improved volumes and higher prices for thermal coal. ANZ advanced after its impaired assets fell in the third quarter. National Australia Bank gained despite the bank warning of additional provisions relating to regulatory compliance. Commonwealth Bank and Westpac both rallied.

    The Kospi added 0.5 percent ?stocks bounced back from a 15-month low hit the previous day as concerns over Turkey's economic woes eased. The Sensex added 0.6 percent even as the rupee hit a record low against the US dollar on expectations of a possible spill over effect from a financial crisis in Turkey.

    Looking forward

    The UK posts July consumer and producer price indices. In the US, July retail sales and industrial production, second quarter productivity and costs, August Empire State manufacturing survey, housing market index and Atlanta Fed business inflation expectations will be released along with June business inventories and Treasury international capital.

    Global Stock Markets
      End 2018DailyPercent Change
     Index2017Aug 13Aug 14ChangeDaily2018Yr/Yr
    North America                
    United States Dow 24719.22 25187.70 25299.92 112.22 0.4 2.3 15.0
      NASDAQ 6903.39 7819.71 7870.89 51.18 0.7 14.0 24.3
      S&P 500 2673.61 2821.93 2839.96 18.03 0.6 6.2 15.2
    Canada S&P/TSX Comp 16209.13 16250.75 16330.67 79.92 0.5 0.7 8.2
                     
    Europe                
    UK FTSE 100 7687.77 7642.45 7611.64 -30.81 -0.4 -1.0 3.1
    France CAC 5312.56 5412.32 5403.41 -8.91 -0.2 1.7 5.1
    Germany XETRA DAX 12917.64 12358.74 12358.87 0.13 0.0 -4.3 1.5
    Italy MIB 21853.34 20969.26 20906.35 -62.91 -0.3 -4.3 n.a.
    Spain Ibex 35 10043.90 9530.40 9507.00 -23.40 -0.2 -5.3 -9.3
    Sweden OMX Stockholm 30 1576.94 1611.80 1608.56 -3.24 -0.2 2.0 4.2
    Switzerland SMI 9381.87 9005.35 9010.19 4.84 0.1 -4.0 0.0
                     
    Asia/Pacific                
    Australia All Ordinaries 6167.29 6341.25 6386.17 44.92 0.7 3.5 10.0
    Japan Nikkei 225 22764.94 21857.43 22356.08 498.65 2.3 -1.8 13.2
      Topix 1817.56 1683.50 1710.95 27.45 1.6 -5.9 5.9
    Hong Kong Hang Seng 29919.15 27936.57 27752.93 -183.64 -0.7 -7.2 2.1
    S. Korea Kospi 2467.49 2248.45 2258.91 10.46 0.5 -8.5 n.a.
    Singapore STI 3402.92 3245.34 3242.87 -2.47 -0.1 -4.7 -1.6
    China Shanghai Comp 3307.17 2785.87 2780.96 -4.91 -0.2 -15.9 -14.5
    Taiwan TAIEX 10642.86 10748.92 10824.23 75.31 0.7 1.7 5.0
    India Sensex 30 34056.83 37644.90 37852.00 207.10 0.6 11.1 n.a.

    Data Source — Haver Analytics

    Bond markets
    10-Yr Govt BondsClosing YieldChange Yield (bp)
    US 2.89% 1
    UK 1.26% 1
    Germany 0.32% 2
    Japan 0.10% 1
    Australia 2.58% 1

    Source — Bloomberg

    Currencies and commodities
    CurrencyAugust 13August 14Change (%)
    Japanese yen 110.6600 110.2100 0.4%
    Australian dollar 0.7262 0.7237 -0.3%
    Yuan 6.8912 6.8912 -0.6%
    Euro 1.1394 1.1342 -0.5%
    British pound 1.2753 1.2712 -0.3%
    Swiss franc 0.9934 0.9942 -0.1%
    Canadian dollar 0.7613 0.7646 0.4%

    Source — Bloomberg 

    CommoditiesAugust 14Change
    Brent Spot $72.21 -0.71%
    Gold $1,201.40 $2.50
    Thompson-Reuters/ Jeffreys Commodity index 195.63 0.08%

    Source — Bloomberg