Most global stock indices advanced after the Senate voted to reopen the US government (只備英文版)

  • 2018年1月23日

    Most global stock indices advanced after the Senate voted to reopen the US government (只備英文版)

    US stocks closed at record new highs once again after the Senate reached an agreement to reopen the government until February 8. The Senate voted 81-18 to end debate and proceed to a vote on the funding bill. The Dow Jones industrials were up 0.5 percent, the S&P gained 0.8 percent and the Nasdaq was 1.0 percent higher.

    US markets

    US stocks closed at record new highs once again after the Senate reached an agreement to reopen the government until February 8. The Senate voted 81-18 to end debate and proceed to a vote on the funding bill. The Dow Jones industrials were up 0.55 percent, the S&P gained 0.8 percent and the Nasdaq was 1.0 percent higher.

    Energy and technology companies advanced and smaller companies reversed some early losses after the Senate vote. High-dividend stocks were also up as bond yields held steady.

    Sanofi said it will buy hemophilia treatment maker Bioverativ for $105 per share, a deal the companies valued at $11.6 billion. Both companies advanced. Celgene will pay $87 per share, or $9 billion, for Juno Therapeutics. Juno is one of several companies developing CAR-T cancer therapies, which genetically engineer patients' blood cells into "living drugs" that fight cancer. Alphabet and Microsoft gained. Xerox was higher on the day.

    AIG will buy Validus, a provider of reinsurance, primary insurance and asset management services for $5.56 billion. Validus gained but AIG slipped. General Electric and mining company Albemarle were lower but big technology companies continued to rally. Halliburton climbed after the company posted a bigger adjusted profit and greater revenue than expected. Schlumberger which reported better-than-expected results Friday also gained. Netflix advanced ahead of its quarterly results after the close.

    These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$2.35 to US$1,332.60. Copper futures were up 0.5 percent to US$3.20. WTI spot crude was up 12 US cents to US$63.49. Dated Brent spot crude was up 65 US cents to US$69.26. The US dollar was up against the yen. However it was down against the euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.1 percent. The yield on the US Treasury 30 year bond was down 1 basis point at 2.92 percent while the 10 year note was unchanged at 2.66 percent.

    European markets

    Most European stock indices advanced Monday in subdued trading with investors monitoring both the situations in Germany and the US. Germany's Social Democrats voted over the weekend to enter into coalition talks with Chancellor Angela Merkel's government, helping end months of political uncertainty in Europe's largest economy. Meanwhile, the US government shutdown entered its third day as lawmakers continued to struggle to reach an agreement on a spending bill to reopen the federal government. The vote to reopen the US government took place after markets here were close. The FTSE slipped 0.2 percent but the CAC added 0.3 percent and the DAX and SMI were 0.2 percent higher.

    Deutsche Telekom rallied after saying it is confident of raising dividends in 2018. Sanofi tumbled after the drug-maker agreed to buy hemophilia drug-maker Bioverativ for $11.6 billion. Gambling firms were under pressure after reports that the government is set to limit gambling terminal stakes to two pounds. William Hill and Ladbrokes Coral retreated. Ocado Group soared after announcing a partnership with Sobeys to develop an online grocery business in Canada. UBS gained in Zurich after it reported a 2.22 billion franc loss for the fourth quarter as a result of a large write down related to the new US tax overhaul. Richemont declined after it launched an offer to take full control of Yoox Net-a-Porter. Italian online luxury retailer Yoox Net-a-Porter soared. Credit Suisse and Julius Baer gained. Roche, Novartis and Nestlé were higher.

    Asia Pacific Markets

    Shares were mixed in Asia as investors waited to hear if there was any progress in the talks to end the US government shutdown that began midnight Friday after the Senate failed to reach agreement over a short-term funding bill. Investors monitored political developments in Europe after Germany's Social Democrats voted to enter coalition talks with Chancellor Angela Merkel's government and French President Emmanuel Macron said it would be possible for Britain to secure a trade deal if the UK accepts certain "preconditions".

    The Shanghai Composite added 0.4 percent to end trading at its highest level since early 2016, helped by gains in defensive and technology stocks. The Hang Seng also added 0.4 percent.

    Japanese stocks barely changed as safe-haven assets such as gold and yen edged higher following the US government shutdown. The Nikkei added 8.27 points and the Topix edged up 0.1 percent. Nomura Holdings, Daiwa Securities Group and insurer T&D Holdings advanced. Automakers and shipping firms however, were among the worst performers.

    Both the S&P/ASX and All Ordinaries retreated 0.2 percent. National Australia Bank was lower on reports of a spin-off of its wealth business. The other three banks also retreated while realty firms GPT Group and Scentre Group also lost ground. Mining stocks were mixed, while gold miners Evolution and Northern Star advanced.

    The Kospi declined 0.7 percent thanks to selling by foreign and institutional investors. Shares declined after the government proposed tax code changes to collect capital gains tax from overseas investors who own more than 5 percent stakes in locally listed companies. The Sensex added 0.8 percent, reaching fresh record highs for the fourth consecutive session on Monday, with underlying sentiment helped by strong earnings results from Reliance Industries and optimism about an improving economy.

    Looking forward

    Bank of Japan announces its monetary policy decision. January ZEW for Germany is released. UK December public sector finances and January CBI industrial trends will be reported. Eurozone flash January EC consumer confidence will be posted. In the US, the January Richmond Fed manufacturing index will be released.

    Global Stock Markets
      End 2018DailyPercent Change
     Index2017Jan 19Jan 22ChangeDaily2018Yr/Yr
    North America                
    United States Dow 24719.22 26071.72 26214.60 142.88 0.5 6.0 32.4
      NASDAQ 6903.39 7336.38 7408.03 71.65 1.0 7.3 33.4
      S&P 500 2673.61 2810.30 2832.97 22.67 0.8 6.0 25.1
    Canada S&P/TSX Comp 16209.13 16353.46 16347.98 -5.48 0.0 0.9 5.6
                     
    Europe                
    UK FTSE 100 7687.77 7730.79 7715.44 -15.35 -0.2 0.4 7.9
    France CAC 5312.56 5526.51 5541.99 15.48 0.3 4.3 14.9
    Germany XETRA DAX 12917.64 13434.45 13463.69 29.24 0.2 4.2 16.6
    Italy MIB 21853.34 23749.22 23890.18 140.96 0.6 9.3 23.6
    Spain Ibex 35 10043.90 10479.50 10584.00 104.50 1.0 5.4 13.7
    Sweden OMX Stockholm 30 1576.94 1630.62 1635.47 4.85 0.3 3.7 8.7
    Switzerland SMI 9381.87 9509.77 9529.13 19.36 0.2 1.6 15.8
                     
    Asia/Pacific                
    Australia All Ordinaries 6167.29 6119.30 6106.20 -13.10 -0.2 -1.0 7.7
    Japan Nikkei 225 22764.94 23808.06 23816.33 8.27 0.0 4.6 26.1
      Topix 1817.56 1889.74 1891.92 2.18 0.1 4.1 24.9
    Hong Kong Hang Seng 29919.15 32254.89 32393.41 138.52 0.4 8.3 41.5
    S. Korea Kospi 2467.49 2520.26 2502.11 -18.15 -0.7 1.4 21.1
    Singapore STI 3402.92 3550.36 3569.43 19.07 0.5 4.9 18.0
    China Shanghai Comp 3307.17 3487.86 3501.36 13.50 0.4 5.9 11.6
    Taiwan TAIEX 10642.86 11150.85 11231.46 80.61 0.7 5.5 19.2
    India Sensex 30 34056.83 35511.58 35798.01 286.43 0.8 5.1 32.0

    Data Source — Haver Analytics

    Bond markets
    10-Yr Govt Bonds Closing Yield Change Yield (bp)
    US 2.66% 0
    UK 1.36% 2
    Germany 0.56% 0
    Japan 0.07% 0
    Australia 2.86% -1

    Source — Bloomberg

    Currencies and commodities
    Currency Jan 19 Jan 22Change (%)
    Japanese yen 110.7200 110.9600 -0.2%
    Australian dollar 0.7997 0.8015 0.2%
    Yuan 6.4040 6.4050 0.0%
    Euro 1.2228 1.2258 0.2%
    British pound 1.3867 1.3984 0.8%
    Swiss franc 0.9628 0.9623 0.1%
    Canadian dollar 0.7999 0.8028 0.4%

    Source — Bloomberg 

    CommoditiesJan 22Change
    Brent Spot $69.26 0.95%
    Gold (PM fixing) $1,332.60 ($2.35)
    Thompson-Reuters/ Jeffreys Commodity index 199.53 0.38%

    Source — Bloomberg