Global shares were mostly lower for the week.
United States
Stocks advanced with safe haven assets paring gains after Donald Trump was sworn in as US president and delivered a populist inauguration speech. The Dow Jones industrials were up 0.5 percent while both the S&P and Nasdaq were 0.3 percent higher. For the week, the three indices declined with the Dow and Nasdaq down 0.3 percent and the S&P 0.1 percent lower. Investors appeared to be in a wait-and-see mode, with US stocks largely shrugging off President Trump’s remarks.
Materials companies led stocks modestly higher, recouping much of the losses from a day earlier and snapping a 5-day losing streak for the Dow. Another crop of encouraging company earnings news helped lift the market, but investors were mostly focused on events in Washington DC.
Stocks have slowed in 2017 after surging for several weeks following election day on investor optimism that a Trump administration and Republican Congress would usher in business-friendly policies. But the possibility of increased tariffs or trade restrictions has also loomed as a potential drag in profits for big US companies. Beyond the presidential transition, investors pored over the latest batch of corporate earnings, bidding up shares in companies that reported results that beat expectations.
Skyworks Solutions jumped along with Citizens Financial Group. Procter & Gamble advanced after the consumer goods maker released a strong growth forecast. Strong subscriber numbers helped lift AT&T, giving a lift to phone company stocks overall. General Electric slid it reported fourth quarter revenue that fell short of forecasts. Bristol-Myers Squibb retreated after the company said it won’t pursue accelerated regulatory approval for a two-drug lung cancer treatment. Merck gained on the news giving the company an advantage in that market. Southwest Airlines and United Continental were higher.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$4.50 to US$1,200.55. Copper futures were up 0.6 percent to US$2.63. WTI spot crude was up US$1.10 to US$53.22. Dated Brent spot crude was up US$1.33 to US$55.49. The US dollar was up against the yen, yuan and the Canadian dollar. It declined against the euro, pound, Swiss franc and the Australian dollar. The Dollar Index was down 0.4 percent. The yield on US Treasury 30 year bond was up 1 basis point to 3.05 percent while the yield on the 10 year note was unchanged at 2.47 percent.
Europe
Stocks were mixed Friday with investors remaining on the sidelines as they watched the transition of power in the United States. Donald Trump was inaugurated after markets here closed for the week. Bank stocks were among the best performing stocks. Traders are hopeful that the Trump administration will relax regulations on the banking sector. The FTSE slipped 0.1 percent, the CAC was up 0.2 percent and the DAX added 0.3 percent. The SMI was virtually unchanged (up 2.05 points). For the week, the FTSE retreated 1.9 percent, the CAC declined 1.5 percent and the SMI was 2.1 percent lower. The DAX was virtually unchanged (up 0.95 point).
Hospital operator Rhoen-Klinikum slipped after the company said that its supervisory board is currently taking decision to reorganize the management board that will be completed no later than Friday. Both Commerzbank and Deutsche Bank gained. In Paris, voucher and prepaid card provider Edenred was lower after major shareholder Colony Capital sold its entire 11.2 percent stake in the company. LVMH rose after the luxury goods group announced plans to take a stake of up to 10 percent in unlisted Italian eyewear group Marcolin.
Antofagasta advanced after the copper miner said it would sell its 40 percent interest in Alto Maipo SpA to partner AES Gener, exiting the project entirely. Whitbread climbed on a broker upgrade. Close Brothers rose after the lender expressed confidence over its full-year results. Heineken advanced in Amsterdam. The brewer confirmed that it is currently in discussions with Japan’s Kirin Holdings regarding a potential transaction in respect of Brasil Kirin Holding.
UK retail sales declined at the fastest pace in more than four years in December as consumers minimized their spending amid rising inflation. Retail sales volume including auto fuel fell 1.9 percent on the month after slipping a marginal 0.1 percent in November.
Asia Pacific
Asian stocks were mixed Friday with Chinese and Japanese shares leading regional gains while markets in Australia, Hong Kong and South Korea retreated prior to the inauguration of US President-elect Donald Trump later in the global market day. Investors also parsed key Chinese data, dovish comments from European Central Bank President Mario Draghi at his post governing council policy meeting and Federal Reserve Chair Janet Yellen’s speeches in California about the US economy.
The Shanghai Composite climbed 0.7 percent and 0.3 percent on the week. A slew of economic reports offered fresh signs of the economy’s stability. The Hang Seng however, lost 0.7 percent and was down 0.2 percent on the week. Fourth quarter 2016 gross domestic product was up 6.8 percent when compared with a year ago. GDP was boosted by higher government spending and record bank lending. December retail sales were slightly higher than expected while industrial production and fixed-asset investment were slightly lower.
Both the Nikkei and Topix added 0.3 percent on the day. The Nikkei was down 0.8 percent on the week while the Topix lost 0.7 percent. Panasonic advanced after the company said it hopes to extend its partnership with electric car maker Tesla beyond batteries and into self-driving technology. Brewer Kirin Holdings also gained on reports that Heineken is in advanced talks to buy Kirin’s Brazilian unit. Takata plunged to extend losses from the previous session in the wake of media reports suggesting that its bidders are pushing for a court-mediated turnaround for its domestic business.
The S&P/ASX retreated 0.7 percent and the All Ordinaries was down 0.6 percent. Both indices lost 1.2 percent on the week. Financials led the declines, with all of the big four banks closing down. Miners BHP Billiton, Fortescue Metals Group and Rio Tinto declined after iron ore and copper prices were lower overnight.
The Kospi was down 0.3 percent as investors waited for the US inaugural address. The index lost 0.5 percent on the week. The Sensex declined 1.0 percent Friday and was down 0.7 percent on the week.
Looking Forward

The following indicators will be released this week…

Europe

Jan 23

Eurozone

EC Consumer Confidence (January flash)

Jan 24

Eurozone

Manufacturing, Services & Composite PMI (January flash)

Germany

Manufacturing, Services & Composite PMI (January flash)

France

Manufacturing, Services & Composite PMI (January flash)

Jan 25

Germany

Ifo Business Survey (January)

Jan 26

UK

Gross Domestic Product (Q4.2016 preliminary)

Jan 27

Eurozone

M3 Money Supply (December)

Asia Pacific

Jan 24

Japan

Manufacturing PMI (January flash)

Jan 25

Japan

Merchandise Trade Balance (December)

Australia

Consumer Price Index (Q4.2016)

Jan 27

Japan

Consumer Price Index (December)

Australia

Producer Price Index (Q4.2016)

Americas

Jan 24

United States

Manufacturing PMI (January flash)

Existing Home Sales (December)

Jan 26

United States

Initial Unemployment Claims (week ending prior Saturday)

International Trade in Goods (December)

New Home Sales (December)

Jan 27

United States

Gross Domestic Product (Q4.2106 first estimate)

Durable Goods Orders (December)

Consumer Sentiment (January final)

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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