On 05 May, 2016 – Global stocks mixed amid holidays in Europe and Asia

Investors stayed on the sidelines while they waited for Friday’s US employment report.
United States
United States markets were little changed Thursday as investors looked ahead to Friday’s closely watched jobs report. The report is significant because of its potential impact on Federal Reserve rate increase expectations. Stocks gave up their earlier gains as sharp rallies in the oil market and energy shares faded. The Dow Jones industrials inched up 0.1 percent while the S&P lost 0.5 points and the Nasdaq was 0.2 percent lower.
Several companies moved higher after reporting better earnings than expected. Shares of the media company Discovery Communications, whose cable channels include Discovery Channel and Animal Planet, advanced as did the insurer Allstate. Kraft Heinz gained after the packaged-food firm reported a higher quarterly profit. Retailers slid after L Brands posted preliminary first-quarter profit that trailed estimates. Utility and telephone stocks retreated as investors capitulated from a recent preference for companies less tied to growth. Tesla Motors tumbled after analysts described the electric-car maker’s new production goals as “too optimistic.”
Initial jobless claims jumped 17,000 higher in the April 30 week to 274,000 but the 4-week average was up only 2,000 to a 258,000 level. But continuing claims were down 8,000 in lagging data for the April 23 week to 2.121 million. The 4-week average for continuing claims is at 2.140 million which is nearly 50,000 below the month-ago trend. The unemployment rate for insured workers was 1.5 percent — a new record low.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$12.25 to US$1,082.25. Copper futures were down 1.5 percent to US$2.15. WTI spot crude was up 63 US cents to US$44.41. Dated Brent spot crude was up 50 US cents to US$45.12. The US dollar was up against the yen, euro, pound, Swiss franc and the Canadian dollar. However, it declined against the Australian dollar. The Dollar Index was up 0.7 percent. The yield on US Treasury 30 year bond was down 3 basis points to 2.60 percent while the yield on the 10 year note was down 4 basis points to 1.74 percent.
Europe
Stocks were mixed Thursday in light holiday trading. Several markets were closed for the Ascension Day holiday including Switzerland, Denmark and Austria. Stocks climbed in early trading thanks to higher crude oil prices. A raging wildfire is threatening supplies from Canada’s oil sands. Violence in Libya also fueled the rally in oil prices. However, gains were pared prior to the close and shares finished the session near the flat line. Investor caution before Friday’s US employment report kept the gains in check. The FTSE edged up 0.1 percent and the DAX added 0.2 percent. The CAC slipped 0.1 percent.
The European Central Bank said the economic recovery is expected to proceed on domestic demand and investment but cautioned that the recovery is weighed down by ongoing balance sheet adjustments.
Commerzbank and Deutsche Bank along with Société Générale, Crédit Agricole and BNP Paribas closed lower. BT Group increased after reporting a better-than-expected 15 percent rise in annual profit thanks to growing demand for TV and broadband services. Wm Morrison Supermarkets advanced after it reported a modest rise in first quarter like-for-like sales. Centrica ended lower after saying it would sell shares to pay off debt.
RSA Insurance Group was up after its operating and net profit for the first quarter beat expectations. Inmarsat tumbled after the mobile satellite communications services provider reported a 41 percent decline in first-quarter profit and also announced an amendment to its cooperation agreement with Ligado Networks. Rolls-Royce Holdings dropped on the eve of its annual general meeting in Nottingham. Smith & Nephew slid after the healthcare group reported a slightly worse-than-expected 3 percent rise in first-quarter revenue, citing weak demand in China and the oil-rich Gulf states.
The UK service sector activity expanded at the slowest pace in more than three years in April largely reflecting economic uncertainty ahead of the referendum on EU membership. The Chartered Institute of Procurement & Supply/Markit services PMI was 52.3 in April, down from 53.7 in March.
Asia Pacific
Asian stocks ended Thursday’s session mixed as a spate of weak US economic data and signs of slowing growth in China’s services sector added to investor concerns about global growth. While a jump in oil prices on concerns about production cuts in Canada’s oil sands region offered some support, gains were tempered ahead of the US jobs report on Friday that could provide further clues on the state of the economy and help influence Fed’s thinking on the timing of a rate increase. Markets in Japan and South Korea were closed for holidays.
The Shanghai Composite was up 0.2 after a private survey showed activity in China’s services sector grew in April, but at a slower pace than in March. The China Caixin services PMI was 51.8, down from 52.2 in March. The Hang Seng retreated 0.4 percent. Hong Kong’s manufacturing sector continued to contract in April at a minimally faster rate according to the latest Performance of Manufacturing Index — April’s reading was 45.3, down from 45.5 in March.
Both the S&P/ASX and All Ordinaries edged up 0.2 percent on encouraging results from National Australia Bank and solid retail sales and new home sales data helping underpin investor sentiment. While HIA’s survey showed an 8.9 percent jump in sales of new homes in March following February’s 5.3 percent decline, retail sales rose 0.4 percent in March from the previous month, beating forecasts for an increase of 0.3 percent. Another report showed that the country’s trade deficit narrowed unexpectedly to a one year low in March thanks to stronger exports. BHP Billiton continued to decline on concerns that penalties associated with the Samarco dam disaster may be worse than initially thought. Fortescue Metals Group tumbled.
The Sensex added 0.6 percent after three days of losses as oil prices jumped on concerns about production cuts in Canada’s oil sands region and a rally in bond markets fizzled out ahead of the US jobs report on Friday. Investors also cheered comments by Finance Minister Arun Jaitley that the Indian economy can grow even faster pace this year if predictions of good monsoon hold up.
Global Stock Markets

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Canada posts its April labour force survey and the US releases its April employment situation report.
*Note — all releases are listed in local time.

Source: Fidelity

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